Warren Buffett, one of the most successful investors of all time, has long been known for his investments in Coca-Cola and American Express published his annual letter to shareholders on Saturday.
In his annual letters to shareholders of Berkshire Hathaway, the holding company he chairs, he often discusses these investments and their importance to the company’s success.
Our satisfactory results have been the product of about a dozen truly good decisions — that would be about one every five years”
Buffett said
Buffett first began investing in Coca-Cola in the late 1980s, when he bought a significant stake in the company. He has since held onto that investment and has continued to add to it over the years. In his letters, Buffett has praised Coca-Cola for its strong brand and enduring popularity, and he has noted that it is a relatively simple business with a wide economic moat. He has also acknowledged the company’s challenges, such as changing consumer preferences and concerns about sugar consumption, but he believes that Coca-Cola’s brand strength and marketing expertise will help it continue to thrive over the long term.
Similarly, Buffett has been a long-time investor in American Express, which he first purchased in the 1960s. In his letters, he has praised the company for its loyal customer base and its ability to generate significant revenue from transaction fees. He has also noted that the company has faced challenges in recent years, including increased competition from other payment processors and changing consumer behaviors, but he believes that American Express’s strong brand and customer service will help it continue to grow.
Overall, Buffett’s investments in Coca-Cola and American Express have been key contributors to the success of Berkshire Hathaway over the years. While he has made many other successful investments as well, these two companies have been among his most enduring bets, and he has consistently expressed his confidence in their long-term prospects.
