Could Investing $10,000 in Coca-Cola Make You a Millionaire?

With its more than 200 drink brands that can cater to any consumer taste, Coca-Cola (NYSE: KO) is a dominant force in the non-alcoholic ready-to-drink industry. Having been founded in 1886, the company today has a presence in more than 200 countries and territories. And 2.2 billion servings of its products are consumed every single day.

These stats are phenomenal, underscoring the leading position the business has. It's clear that Coca-Cola needs no introduction. But could investing $10,000 in this beverage stock make you a millionaire one day?

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Here's why Coca-Cola is an outstanding company

Coca-Cola is without a doubt a high-quality business. This is something that even the great Warren Buffett believes to be true, as Berkshire Hathaway owns 400 million of the company's outstanding shares. When the Oracle of Omaha has a positive view of a company, perhaps the average investor should take a closer look.

Coca-Cola's most notable characteristic is its brand name. Decades of selling beverages that consumers have built an affinity toward can support how well the brand resonates. Coca-Cola is associated with happiness, not just quenching one's thirst. The company's ability to also drive impactful marketing campaigns has helped tremendously. This is one of the world's strongest brands.

That has supported Coca-Cola's ongoing pricing power. During the latest fiscal quarter (Q3 2025 ended Sept. 26), the business benefited from a 4% jump in prices, which isn't a new trend. Because consumers are loyal to the brand, Coca-Cola can constantly ask them to pay more over time. By selling a product that lends itself to small, repeat purchases, the business gains financially.

Investors shouldn't ignore how profitable Coca-Cola is. It outsources the capital-intensive aspects of bottling and distribution to third-party partners. As a result, the business has registered a fantastic trailing-10-year operating margin of 26.4%. Coca-Cola generates plenty of free cash flow that directly benefits shareholders.

In February, the company's board of directors approved another dividend hike. This marked the 63rd straight year of increases. Very few businesses have this sort of track record.

Can Coca-Cola stock beat the market?

Even though this is a wonderful business, investors should think about the stock's ability to produce impressive returns. One factor to consider is growth. According to Wall Street consensus analyst estimates, the company's earnings per share are projected to increase at a compound annual rate of only 6.3% between fiscal 2024 and fiscal 2027. That's nothing to get excited about. It's difficult to expand rapidly when you've been around for so long and your products are already ubiquitous.

Valuation also plays a part. Shares trade at a price-to-earnings ratio of 23.6. If this multiple were much cheaper, it would obviously add more upside for interested investors.

It's evident that Coca-Cola shares don't have what it takes to produce market-beating returns over the long term. The business is very mature, with muted potential to significantly grow revenue and earnings. And the valuation doesn't exactly present a bargain opportunity. In the past decade, the stock has generated a total return of 136% (as of Nov. 14). I believe the trend of underperforming the broader S&P 500 will continue.

Consequently, it's not a surprise that Coca-Cola isn't a millionaire-maker stock. In order for a $10,000 starting sum to turn into $1 million, it would require a monster 100-fold gain. There are very few stocks on Earth that can put up this kind of return. Coca-Cola is not one of them.

Investors should focus their efforts on trying to build a diversified portfolio of high-quality companies, instead of hoping a single position can make them rich. This is a promising way of handling your investments for the long term.

Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway. The Motley Fool has a disclosure policy.