Of Permanent Value

buffett brought Coke at 12 PE, at $35 per share at around Apr 1993

Coca-cola company brought back its shares, buffet commented, even at 40 times earning, is a good use of the company's capital. "It sounds like a very high price, when you name it in terms of P/E to buy back stock at that kind of number,still, it's the best large business in the world. I approve of Coke's repurchases. I'd rather have them repurchases at 15 times earnings, but it's very efficient way of use capital."

buffett's Berkshire has done even better than Coke. Bershire's YOY increased 25-30%, while CK's less than 20%. But, as buffet says, Coke has been through depressions and wars. Berkshire under buffett has yet to live through a world war, Coke survived 2 of them.