Coca-Cola (KO) is one of the world's most iconic brands, with revenue of $43 billion in its most recent fiscal year. Not bad, but not surprising for a company with brands like Sprite, Fanta, Coke Zero, and Diet Coke. Coca-Cola sells more than 2 billion drinks per day and operates in more than 200 countries.
Check out: I'm a Self-made Millionaire: 5 Stocks You Shouldn't Sell
Read next: 6 genius things every rich person does with their money
But things weren't always smooth sailing for the soft drink giant. Coca-Cola was invented by pharmacist Dr. John Stith Pemberton in 1886 in Atlanta, Georgia, and was initially sold for $0.05 a pop at soda fountains at local pharmacies. People certainly enjoyed the taste, but the modest sales of nine cups a day meant Pemberton couldn't get away from his day job.
That has clearly changed. Unfortunately, Pemberton, who died in 1888, never witnessed his success, which only intensified over the decades. According to World Population Review, Coca-Cola is currently the world's best-selling soft drink.
However, there is some debate about this drink. Perhaps the chief among them is the often exaggerated claim that Coca-Cola contains cocaine as one of its ingredients. In fact, this argument continues into modern times. The truth is, according to the New York Times, the original prescription contained a small amount of the drug, which was legal at the time, but not as much as many had claimed.
Today, this drink still contains coca, but no cocaine. As a company spokesperson told the New York Times in 1988, “Although coca leaf ingredients are used, there is no cocaine and all are closely monitored by regulatory authorities.” . It's a famous story, but few people know about the Coca-Cola formula that is kept in bank vaults.
But one thing is for sure: buying Coca-Cola stock has been a recipe for success for investors over the past few decades. Consider the following scenario. Coca-Cola has split many times and paid dividends for decades, so maybe your great-grandmother bought her only one share at her original price of $40 in 1919. , you would have done if I had left it to you without selling it. He currently owns over 320,000 shares worth well over $19.5 million. Not bad for a sweet fountain drink.
However, few of our ancestors had such foresight. So, if he invested $1,000 in April 2014, how much would his Coke stock be worth today? His money would more than double, and his total investment would be $2,029.55. . This works out to be a 103% return, or 7.23% p.a.
Interestingly, despite Coke's dominance on the world stage, investing in Coke's main rival Pepsi a decade ago would have given you more pop for your buck. If the same person invested $1,000 in Pepsi in 2014, the investment would now be worth $2,714.63. This gives him an annual return of 10.48% and a total return of 171.46%.
GOBankingRates Details
This article originally appeared on GOBankingRates.com: How much is a $1,000 investment in Coca-Cola stock from 10 years ago worth today?
