Instead, the Oracle of Omaha has been steadily, gradually accumulating over several decades.
He’s the undisputed champion of long-term investing.And his many paeans to patience are well known and well loved by investors all over the world.
One of the most famous: “No matter how great the talent or efforts, some things just take time,” he wrote in the 1985 shareholder letter for his company, Berkshire Hathaway.“You can’t produce a baby in one month by getting nine women pregnant.”
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That’s good — and extremely colorful — advice.Building wealth through investing is certainly possible, but only if the investor is patient, disciplined and committed to long-term thinking.The final ingredient is a stock that has the endurance to withstand market cycles and deliver steady returns over the long haul.
With that in mind, here are the top three forever stocks you might want to consider adding to your “Patient Capital” watch list.
Kraft Heinz The Kraft Heinz corporation is only eight years old, but the two brands that constitute it have each been around for more than a century.Kraft Foods Inc.was founded in 1909 while the H.
J.Heinz Co.was established in 1869.
Both brands have steadily grown their footprints across the world over the intervening decades.
In some parts of the world, these brands are synonymous with cheese, ketchup and macaroni.Brand recognition like this takes forever to build, which is why the combined business has so much underlying value.
Today, the company is worth more than $45 billion, and the stock trades at about 15 times earnings — reasonable for a low-growth consumer brand.
Story continues Berkshire first acquired a stake in Heinz in 2013.Two years later, the firm put up $5 billion as part of the mega-merger that brought the two household brands together.
The combined company is currently the seventh largest Berkshire holding.
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Coca-Cola Coca-Cola is another iconic brand dating to the 19th century.
The company was launched in 1892 and has been on Buffett’s portfolio for several decades.He first initiated a position in the beverage giant in 1988.The stock is up more than 2,500% since then.
The company is now worth in excess of $250 billion, while the stock trades at a price-to-earnings ratio of around 23.KO — the company’s ticker symbol — also offers a 3% dividend yield, which makes it an ideal target for income-seeking investors like Buffett.
Buffett currently owns 400 million shares of KO worth $23.5 billion.
It’s the fourth-largest position in his portfolio, which is a testament to his long-term commitment to this brand.Retail investors should certainly take a closer look at this blue chip.
American Express American Express is 173 years old, which makes it the oldest company on this list.The firm was launched in 1850 as an express mail business in Buffalo, New York.
Now, of course, it’s one of the largest payment networks in the world, with more than $214.5 billion passing through the network last year.Amex gets a tiny slice of each transaction.
Meanwhile, Buffett owns a large slice of the company, whose shares have surged to $185 since an April 2020 pandemic low of $73.Buffett’s stake in Amex is worth over $22 billion, making it his third-largest holding.
This “forever” stock currently trades at a little more than 17 times earnings and should certainly be on your list.
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This article provides information only and should not be construed as advice.It is provided without warranty of any kind.
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