It does. Oatmeal has helped to drop my husband/s cholesterol 35 points and my cholesterol about 25 points. We don't use butter on top. There are plenty of research studies around that have found this, if you want to checkaround. I found one at http://www.collectivewizdom.com/IdealBreakfastforHeartHealth and one on Dean Ornish's web site, http://www.deanornish.com
Cheerios are really toasted oats which is why they also reduce cholestrol. So, from the experience of my family, I would say, definitely oatmeal and cheerios can lower your cholesterol. Good luck to you.