logo
  Join        Login             Stock Quote

Warren Buffett Just Spent $200 Million On This 'Forever' Stock

 March 26, 2012 12:12 PM
 


Warren Buffett is no fan of short-term trends. Rather than focusing on the flavor of the minute, Buffett instead fixates on trends that will last decades.

And then he makes a fortune off of them.

Take his investment in Coca-Cola (NYSE: KO), for example. Buffett began buying the soda maker in 1988, eventually acquiring about 7% of the company, thinking it had room to grow in the developing world.

He was right. What was a roughly $1 billion investment for about 200 million shares is now worth nearly $14 billion.

But it doesn't stop there. The same can be said for his stakes in Wells Fargo (NYSE: WFC), American Express (NYSE: AXP), IBM (NYSE: IBM), the list goes on...

Buffett's stock purchases are some of the best examples of what we call "Forever Stocks." It's a term coined by Paul Tracy, StreetAuthority's co-founder and chief investment strategist of our Top-10 Stocks newsletter. Forever Stocks are stable, growing companies you buy and hold almost quite literally "forever." And like Buffett's Coca-Cola stake, you can make incredible gains over time, while resting easy knowing that you own shares of a solid company.

Back in February, I briefly mentioned that the billionaire investor's firm, Berkshire Hathaway (NYSE: BRK-A) (NYSE: BRK-B), had acquired more than $200 million worth of stock in another company, one of the leading kidney dialysis center operators in the United States.

So did Buffett just buy another Forever Stock?

I think so. Here's why...


Next Page >>123
iOnTheMarket Premium
Advertisement

Advertisement


Post Comment -- Login is required to post message
Name:  
Alert for new comments:
Your email:
Your Website:
Title:
Comments:
 

rss feed

Latest Stories

article imageHow the Chinese Slowdown Will Impact Your Investments

Most countries would find a quarterly growth rate of 7.3% a cause for a read on...

article imageHow To Profit From Foreign Investment In Real Estate

Though investors don't always capitalize on it, history has a way of repeating itself. In fact, when I saw read on...

article imageAnother Round Of Upbeat US Macro Reports

The US economy grew faster than expected in this year’s third quarter, according to this morning’s read on...

article imageDistinguishing The Fed's Securities Purchases From Monetary Expansion

There has been a bit of confusion about what today's FOMC announcement means with respect to Quantitative read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.