Elon Musk was stunned by the investment empire’s Coca-Cola dividend windfall
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Tesla CEO Elon Musk is no stranger to eye-popping sums of money. After all, he currently holds the title of the world’s wealthiest person, with a staggering net worth of $800 billion (1).
But even for Musk, some financial figures are enough to raise an eyebrow.
Back in 2023, Berkshire Hathaway’s annual report revealed that the investment empire earned $704 million in dividends from its Coca-Cola (KO) holdings (2). Upon hearing the news, Musk couldn’t resist commenting on X, “Berkshire Hathaway high on Coke (3).”
That figure was calculated based on Berkshire’s 400 million shares in Coca-Cola and the 44 cents per share that Coca-Cola paid out in quarterly dividends in 2022 (4).
Fast forward to today, and that dividend payout has climbed even higher. According to Berkshire’s latest 13F filing for Q3 2025, the company still holds 400 million shares in Coca-Cola (5). With Coca-Cola having raised its 2025 quarterly dividend to 51 cents per share, Berkshire could have collected an impressive $816 million in dividend income for the year ($0.51 x 4 x 400,000,000) (6).
As the former CEO of Berkshire Hathaway, Warren Buffett’s love for Coca-Cola is well-documented. On a 2019 Squawk Box episode, Buffett shared with CNBC, “I drink probably five 12-ounce Cokes a day, and that’s about 700 calories, and I’ve been doing it more or less my whole life. I can’t imagine anybody that feels better than I do (7).”
Beyond his appreciation for the taste, Buffett’s Coca-Cola investment became a remarkable source of passive income for the company — and you can learn from his strategy when building your own portfolio.
Here are three takeaways to consider on your path to passive income.
Investing in the stock market has never been more accessible, allowing everyday investors to earn passive income through dividend-paying stocks — just like Buffett. Companies that consistently pay dividends enable investors to earn income without having to sell their shares. High-quality companies like Coca-Cola can even increase these dividends over time, amplifying the income stream.
Buffett highlighted the power of this approach in his 2022 letter to shareholders, where he wrote, “The cash dividend we received from Coke in 1994 was $75 million. By 2022, the dividend had increased to $704 million. Growth occurred every year, just as certain as birthdays. All Charlie and I were required to do was cash Coke’s quarterly dividend checks. We expect that those checks are highly likely to grow.”
Indeed, Coca-Cola has raised its dividend every year for the past 63 years, demonstrating a strong commitment to shareholders (8).
However, keep in mind that past performance isn’t a guarantee of future results. When buying a dividend stock, don’t just focus on its payout or yield. Take the time to understand the company’s business fundamentals, and if you’re following Buffett’s lead, look for companies with durable competitive advantages.
If you’re not a lifelong investor like Buffett, it can be hard to know where to invest your money. Before you select stocks, it’s important to understand the market.
Moby offers expert insights and recommendations to help you identify strong, long-term investments backed by advice from former hedge fund analysts.
In four years, and across nearly 400 stock picks, their recommendations have beaten the S&P 500 by almost 12% on average. They also offer a 30-day money-back guarantee.
Moby’s team spends hundreds of hours sifting through financial news and data to provide you with stock and crypto reports delivered straight to you. Their research keeps you up-to-the-minute on market shifts and can help you reduce the guesswork behind choosing stocks and ETFs.
Another way to earn passive income is through real estate, since well-chosen properties can provide investors with a steady stream of rent. It’s also considered a reliable hedge against inflation, with property values and rent often rising alongside the cost of living.
While the prospect of collecting monthly rent checks may sound appealing, being a landlord does have its challenges. Property ownership involves ongoing responsibilities such as handling maintenance issues—from fixing leaking faucets to managing major repairs—alongside tenant-related concerns, which can be time-consuming and unpredictable.
But these days, you don’t need to be a landlord to start investing in real estate. There are plenty of real estate investment trusts (REITs), as well as crowdfunding platforms that allow you to earn rental income without becoming a landlord.
You can tap into this market by investing in shares of vacation homes or rental properties through Arrived.
Backed by world-class investors, including Jeff Bezos, Arrived allows you to invest in shares of vacation and rental properties, earning a passive income stream without the extra work that comes with being a landlord of your own rental property.
To get started, simply browse through their selection of vetted properties, each picked for potential appreciation and income generation. Once you choose a property, you can start investing with as little as $100, potentially earning quarterly dividends.
For those with more income to invest, there are additional passive income opportunities worth considering.
For instance, mogul is a real estate investment platform offering fractional ownership in blue-chip rental properties, which gives investors monthly rental income, real-time appreciation and tax benefits — without the need for a hefty down payment or late-night tenant calls.
Each property undergoes a vetting process, requiring a minimum 12% return even in downside scenarios. Across the board, the platform features an average annual IRR of 18.8%. Their cash-on-cash yields, meanwhile, average between 10 to 12% annually. Offerings often sell out in under three hours, with investments typically ranging between $15,000 and $40,000 per property.
Every investment is secured by real assets, meaning it’s not dependent on the platform’s viability. Each property is held in a standalone Propco LLC, so investors own the property — not the platform. Blockchain-based fractionalization adds a layer of safety, ensuring a permanent, verifiable record of each stake.
Getting started is a quick and easy process. You can sign up for an account and then browse available properties. Once you verify your information with their team, you can invest like a mogul in just a few clicks.
Another way to leverage real estate is by investing in multifamily rentals. This market can offer greater protection since you’re receiving multiple rent payments — meaning if a tenant is late to pay or moves out, you can still earn passive income from other renters.
If diversifying into multifamily rentals appeals to you, you could consider investing with Lightstone DIRECT, a new investing platform from the Lightstone Group, one of the largest private real estate companies in the country with over 25,000 multifamily units in its portfolio.
Since they eliminate intermediaries — brokers and crowdfunding middlemen — accredited investors with a minimum investment of $100,000 can gain direct access to institutional-quality multifamily opportunities. This streamlined model can help reduce fees while enhancing transparency and control.
And with Lightstone DIRECT, you invest in single-asset multifamily deals alongside Lightstone — a true partner — as Lightstone puts at least 20% of its own capital into every offering. All of Lightstone’s investment opportunities undergo a rigorous, multi-stage review before being approved by Lightstone’s Principals, including Founder David Lichtenstein.
How it works is simple: Just sign up with your email, and you can schedule a call with a capital formation expert to assess your investment opportunities. From here, all you have to do is verify your details to begin investing.
Founded in 1986, Lightstone has a proven track record of delivering strong risk-adjusted returns across market cycles with a 27.6% historical net IRR and 2.54x historical net equity multiple on realized investments since 2004. All told, Lightstone has $12 billion in assets under management — including in industrial and commercial real estate.
As such, even if multifamily rentals don’t appeal to you, Lightstone could still serve you well as an investment vehicle for other real estate verticals.
High-yield accounts offer a low-risk way to generate passive income while keeping your funds accessible. These accounts usually provide higher interest rates than traditional accounts, allowing your money to grow steadily without being tied up in long-term investments.
A high-yield account like a Wealthfront Cash Account offers both competitive interest rates and easy access to your cash when you need it.
A Wealthfront Cash Account currently provides a base variable APY of 3.30%, but new clients can get an exclusive 0.75% boost over their first three months on up to $150,000 — for a total APY of 4.05%. That’s ten times the national deposit rate, according to the FDIC’s January report.
With no minimum balances or account fees, as well as 24/7 withdrawals and free domestic wire transfers, your funds remain accessible at all times. Plus, Wealthfront Cash Account balances of up to $8 million are insured by the FDIC through program banks.
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