Warren Buffett: Find A Way To Make Money While You Sleep, Or Work Until You Die – How To Jumpstart Your Passive Income

Kevin Vandenboss

Warren Buffett, the legendary investor and CEO of Berkshire Hathaway, once famously said, “If you don’t find a way to make money while you sleep, you will work until you die.” This quote perfectly encapsulates the importance of creating passive income streams that can work for you even when you’re not actively engaged in earning money.

Buffett’s advice is not just a catchy soundbite; it’s a fundamental principle that has guided his investment strategy for decades. One of the best examples of how Buffett has mastered the art of making money work for him is his investment in Coca-Cola Co. 

Berkshire Hathaway first began acquiring shares of Coca-Cola in 1988 and continued to invest until 1994, amassing a total of 400 million shares for $1.3 billion. Today, that investment is set to pay out a staggering $776 million in dividends this year alone, representing a yield on cost of 59.7%. This means that Buffett’s original investment in Coca-Cola is now generating an annual return of nearly 60%, without any additional effort on his part.

Coca-Cola’s impressive dividend performance is a testament to the company’s strong history of consistent dividend increases. With a current dividend yield of 3.08%, an annual payout of $1.94 per share, and a payout ratio of 68.32%, Coca-Cola has maintained a 5-year dividend growth rate (CAGR) of 3.50% and has increased its dividends for an impressive 61 consecutive years.