Grant Cardone Says Buffett Made $508 Million As An Investor In Coca-Cola Last Year. The CEO Made $58 Million – Here's What He Meant By That

In a recent interview on “The Neel Home Show,” Grant Cardone dropped some eye-opening insights about investing and business strategy. One particular statement caught everyone’s attention: Warren Buffett made $508 million as an investor in Coca-Cola KO last year, while the CEO made $58 million. So, what did Cardone mean by this, and what can we learn from it?

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Cardone's point is simple but powerful: being an investor can be far more lucrative than being the top executive of a company. He said, “Skip to the good stuff. Be an investor. Be Buffett. Buffett is a perfect example. He made 508 million dollars as an investor at Coca-Cola last year. The top guy at Coca-Cola made 58 million. So Warren Buffett made 500 million as an investor. He’s never in the operations, OK, and the CEO who runs the company made 50 million. Who do you want to be?”

While the CEO works hard managing day-to-day operations, making critical decisions, and handling the company’s ups and downs, the investor reaps significant rewards without the same level of involvement. “You don’t want to be the owner. You don’t even want to be the CEO. You don’t want to be the top guy in the company. You don’t want to be the entrepreneur. You want to be the investor!” said Cardone.

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The Power Of Investing

Warren Buffett, renowned for his long-term investment approach, began acquiring shares of Coca-Cola in 1988, ultimately investing $1.3 billion by 1994. Today, Berkshire Hathaway's stake in Coca-Cola is worth over $24.7 billion. Buffett’s patience brought him a 59.7% yield on the original investment, revealing the power of holding onto high-quality stocks.

Buffett reflected on this investment in his annual letter, stating, "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."

Coca-Cola's consistent dividend growth has made it a top investment for Buffett. Grant Cardone actually downplayed Buffett’s success by a lot because, since 1994, the annual dividend Berkshire Hathaway receives from Coca-Cola has grown from $75 million to $736 million. That’s over $200 million more than Cardone mentioned in the interview.

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Think Bigger And Invest Smarter

Cardone advocates for thinking bigger and making smarter investments. He suggests avoiding small steps like buying single-family homes. Instead, he recommends larger investments that offer better returns and are easier to manage. "Your first deal should be 32 units … you'll make $1.2 million on that deal as soon as you move the rents without doing anything," he advised.

Cardone also practices what he calls staying "broke." He explained, "I break myself a couple of times a year. Sometimes, four times a year … I take the liquidity … I have a million dollars. I’m going to take the million [and] dump it into something non-liquid … I want to go from paper to a building where I can’t touch the money.” 

He emphasized, “This leaves me at zero again, so now this is the new me.” By reinvesting his earnings into assets that generate passive income, Cardone keeps himself motivated to find new opportunities and grow his wealth.

While Cardone’s advice helps grow wealth, not everyone has the risk tolerance or money to invest in a large portfolio of properties. Balancing big goals with a realistic, personalized financial plan can help you steadily reach your financial dreams.

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