Update 06 Jun 2024

Warren Buffett’s Berkshire Hathaway shareholder letters – Episode 3

Want to know why Warren Buffett got a special waiver not to disclose his investment in Coca-Cola for over a year?🏁

When Warren Buffett started investing in Coca-Cola in the early 1990s, he was the second richest American💰. He was already touted as the greatest investor ever.

Whenever Warren picked a stock, people would flock to buy it. The stock’s price would rally too high before Warren was done accumulating that stock for Berkshire Hathaway📈. This resulted in two outcomes:

  1. Warren could not buy a quantity large enough to make a notable difference in Berkshire’s overall portfolio.
  2. Even if he bought the required quantity, his return expectations would be subdued as the average purchase price rallied up.

Therefore, Warren got a waiver from the SEC (the SEBI equivalent in the US)🏦, accumulated over 6% in Coca-Cola, got a board seat, and then declared his investment to the public.

In the third episode, we discuss this and many other interesting stories about Warren Buffett as we cover his shareholder letters from 1987 to 1991.