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Welcome to Episode #335 of the Value Investor Podcast.
Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks.
Recently, there was a tweet making the rounds showing a chart with the stocks that Berkshire Hathaway has owned the longest in its portfolio. The oldest holding is Coca-Cola, which Warren Buffett bought in 1988. He famously loves Coke and supposedly used to drink 5 to 6 cans a day.
35 Years in Coca-Cola
The Coca-Cola Company (KO - Free Report) is now Berkshire’s 5th largest position, as the company keeps adding to its Occidental Petroleum position and that is now the third largest.
Thirty-five years in one stock is impressive. From June 1, 1988 to July 11, 2023, Coca-Cola is up 2,420% without dividends. That beats the S&P 500 which is up 1,605%.
But Coca-Cola remains the only stock still in the Berkshire portfolio from the 1980s. Stocks from the 1990s are rare too.
Long-Term Stocks are Rare in the Berkshire Portfolio
American Express was first bought by Berkshire Hathaway in 1994. It is another successful long-term position for the portfolio. Shares of American Express are up 2066% from the end of Q1 1994 to July 11, 2023 while the S&P 500 was up 889% during that time (note, in the podcast, Tracey mistakenly says that it was up just 175%).
American Express is currently a cheap stock. It trades at 15.6x forward earnings. Shares of American Express are up 18.1% year-to-date.
But it remains the only stock bought in the 1990s red-hot bull market which is still in the portfolio. Why?
Moody’s is the 9th largest position in the Berkshire portfolio now. It was first added to the portfolio in the first quarter of 2001 so that means it has been in the portfolio for 22 years. That makes it the third oldest position.
Moody’s has also outperformed the S&P 500, gaining 2122% since 2001 versus the S&P 500 up 258%. Shares are also up in 2023, adding 26.2%. Moody’s is no longer a value stock by P/E as it trades at 35x.
Should it matter that Moody’s is no longer an actual value?
Stocks from the early 2000s are now rare in the Berkshire portfolio as Buffett has sold many of his banks that he bought in that time period. But Procter & Gamble was added in the first quarter of 2005, so that means Berkshire has owned it for 18 years.
Procter & Gamble has underperformed however. It’s up just 148% in those 18 years compared to 278% for the S&P 500, without dividends. Procter & Gamble is not cheap, with a forward P/E of 23.4.
Will Procter & Gamble make it to the 20-year mark?
Do you know that Berkshire Hathaway owns shares of Amazon? It bought them in the first quarter of 2019. It hasn’t added to the position, nor has it sold any of Amazon, in that four-year period.
Amazon hasn’t been a great investment for the portfolio, so far. It’s up 33.5% since the last day of the first quarter of 2019 and July 11, 2023. The S&P 500 is up 51.8% during that period.
Will Amazon be a forever stock for Berkshire Hathaway?
Should You Really Hold a Stock for Forever?
Tune into this week’s podcast to find out.
[In full disclosure, Tracey owns shares of AMZN in her personal portfolio.]
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Should You Hold a Stock for Forever?
Welcome to Episode #335 of the Value Investor Podcast.
Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks.
Recently, there was a tweet making the rounds showing a chart with the stocks that Berkshire Hathaway has owned the longest in its portfolio. The oldest holding is Coca-Cola, which Warren Buffett bought in 1988. He famously loves Coke and supposedly used to drink 5 to 6 cans a day.
35 Years in Coca-Cola
The Coca-Cola Company (KO - Free Report) is now Berkshire’s 5th largest position, as the company keeps adding to its Occidental Petroleum position and that is now the third largest.
Thirty-five years in one stock is impressive. From June 1, 1988 to July 11, 2023, Coca-Cola is up 2,420% without dividends. That beats the S&P 500 which is up 1,605%.
But Coca-Cola remains the only stock still in the Berkshire portfolio from the 1980s. Stocks from the 1990s are rare too.
Long-Term Stocks are Rare in the Berkshire Portfolio
1. American Express Co. (AXP - Free Report)
American Express was first bought by Berkshire Hathaway in 1994. It is another successful long-term position for the portfolio. Shares of American Express are up 2066% from the end of Q1 1994 to July 11, 2023 while the S&P 500 was up 889% during that time (note, in the podcast, Tracey mistakenly says that it was up just 175%).
American Express is currently a cheap stock. It trades at 15.6x forward earnings. Shares of American Express are up 18.1% year-to-date.
But it remains the only stock bought in the 1990s red-hot bull market which is still in the portfolio. Why?
2. Moody’s Corp. (MCO - Free Report)
Moody’s is the 9th largest position in the Berkshire portfolio now. It was first added to the portfolio in the first quarter of 2001 so that means it has been in the portfolio for 22 years. That makes it the third oldest position.
Moody’s has also outperformed the S&P 500, gaining 2122% since 2001 versus the S&P 500 up 258%. Shares are also up in 2023, adding 26.2%. Moody’s is no longer a value stock by P/E as it trades at 35x.
Should it matter that Moody’s is no longer an actual value?
3. The Procter & Gamble Co. (PG - Free Report)
Stocks from the early 2000s are now rare in the Berkshire portfolio as Buffett has sold many of his banks that he bought in that time period. But Procter & Gamble was added in the first quarter of 2005, so that means Berkshire has owned it for 18 years.
Procter & Gamble has underperformed however. It’s up just 148% in those 18 years compared to 278% for the S&P 500, without dividends. Procter & Gamble is not cheap, with a forward P/E of 23.4.
Will Procter & Gamble make it to the 20-year mark?
4. Amazon.com, Inc. (AMZN - Free Report)
Do you know that Berkshire Hathaway owns shares of Amazon? It bought them in the first quarter of 2019. It hasn’t added to the position, nor has it sold any of Amazon, in that four-year period.
Amazon hasn’t been a great investment for the portfolio, so far. It’s up 33.5% since the last day of the first quarter of 2019 and July 11, 2023. The S&P 500 is up 51.8% during that period.
Will Amazon be a forever stock for Berkshire Hathaway?
Should You Really Hold a Stock for Forever?
Tune into this week’s podcast to find out.
[In full disclosure, Tracey owns shares of AMZN in her personal portfolio.]