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In the world of business, two companies stand out as significant holdings for the renowned Berkshire Hathaway: Coca-Cola and SiriusXM. Let's delve into the current financial performance, growth potential, and key takeaways for each of these companies.
**Coca-Cola (KO)**
Coca-Cola reported a Q1 2025 revenue of $11.13 billion, a 2% decrease year-over-year, mainly due to currency effects and bottling refranchising. However, operating profit increased by 10%, and the operating margin rose to 33.8% due to effective cost management and pricing strategies. Earnings per share (EPS) increased by 1% to $0.73, with global unit case volume growing by 2%. Coca-Cola Zero Sugar sales surged by 14% across all regions. Free cash flow was negative (-$5.51 billion), mainly because of a one-off payment related to the Fairlife transaction. Excluding this item, free cash flow was $558 million. Management reaffirmed 2025 guidance, expecting organic revenue growth of 5–6% and non-GAAP EPS growth of 2–3%. Free cash flow is projected at around $9.5 billion for the full year. Analysts forecast a possible breakout above resistance at $74, with continued upside toward $86 in 2025.
Coca-Cola's growth potential is driven by robust growth in emerging markets such as India, China, and Brazil, successful launches of low-sugar and health-focused drinks, and continued bottling refranchising to further improve margins and streamline operations. Berkshire Hathaway's Coca-Cola stake is valued at approximately $28.6 billion as of May 2025.
**SiriusXM (SIRI)**
SiriusXM, a leading audio entertainment company in the U.S., faces competition from other streaming platforms but maintains a large, loyal subscriber base. The company's growth outlook is generally viewed as modest compared to other portfolio leaders, focusing on subscriber retention, cross-selling, and potential synergies with other streaming platforms. Without recent financial projections or specific revenue/earnings guidance, detailed outlooks are limited. Berkshire Hathaway's stake in SiriusXM is not highlighted as a significant part of the $284 billion equity portfolio, which is dominated by Coca-Cola, American Express, and Apple.
In summary, Coca-Cola demonstrates resilient performance with solid growth potential in emerging markets and health-focused product lines. Berkshire Hathaway maintains a significant stake, reflecting confidence in the company’s long-term prospects. SiriusXM, while not a major Berkshire holding, is expected to grow modestly, focusing on subscriber retention and streaming synergies.
A comparison of the two companies can be found in the table below:
| Company | Revenue (Q1 2025) | 2025 EPS Guidance | Free Cash Flow (2025 est.) | Key Growth Drivers | Berkshire Stake Value (approx.) | |-------------|------------------|-------------------|---------------------------|-------------------|-------------------------------| | Coca-Cola | $11.13B (down 2%)| 2–3% (non-GAAP) | $9.5B (est.) | Emerging markets, health drinks, refranchising | $28.6B[2][4] | | SiriusXM | N/A | N/A | N/A | Subscriber retention, streaming | Minor, not specified[4] |
Key takeaways include the stock's trading at a cheap free cash flow multiple of 6.6 based on 2025 FCF guidance, an initial $10,000 investment in Coca-Cola potentially generating over $400 in annual income by 2035, and the quarterly dividend of Coca-Cola being $0.51, with a forward dividend yield of 2.91%. Assuming the dividend growth continues at the rate of the last 10 years, it could reach $0.75 by 2035. Podcast-driven ad revenue at SiriusXM increased by 33% year over year in Q1, and the current forward dividend yield of SiriusXM is 4.78%. Berkshire Hathaway currently holds 400 million shares of Coca-Cola, and Coca-Cola has raised its dividend for 63 consecutive years. SiriusXM's free cash flow is expected to increase over the next few years as investments in new satellites taper off. Warren Buffett has invested $1.3 billion in Coca-Cola (KO) over 30 years ago. Over the last year, Berkshire has significantly increased its stake in SiriusXM as the stock has fallen. Coca-Cola has 30 brands generating at least $1 billion in annual sales.
- The robust expansion in emerging markets such as India, China, and Brazil, the successful rollout of low-sugar and health-focused drinks, and continuous bottling refranchising aim to fuel Coca-Cola's growth, ascertaining Berkshire Hathaway's confidence in the company's long-term prospects.
- Analysts predict a potential breakout above resistance at $74 for Coca-Cola stock, with a further upside toward $86 in 2025, signifying investing in personal-finance opportunities within the company.
- While SiriusXM's stake in Berkshire Hathaway's $284 billion equity portfolio is not substantial compared to holdings like Coca-Cola, American Express, and Apple, the company is poised to grow modestly by focusing on subscriber retention, cross-selling, and potential streaming synergies, warranting attention for personal-finance management and investing.
