Buffet's 50% yield
One of Buffett's most famous long-term holdings is his 8.9% stake in The Coca-Cola Company (NYSE: KO). The $15bn shareholding is Buffett's company Berkshire Hathaway's largest holding and most of it dates back to 1988, when Berkshire spent $1bn to acquire a 6.2% stake at an approximate cost, adjusted for splits and dividends, of $3.75 per share.
Back in 1988, Coke shares offered a yield of 4% -- decent, but not amazing. Since then, the company has maintained its 50-year unbroken record of annual dividend increases. The result is that in 2011, the dividend payout was $1.88, providing Buffett with a massive 50% yield on his original investment.
Company May 2002
British American Tobacco (LSE: BATS) 793p 1.4% 15% SSE (LSE: SSE) 679p 4.8% 11% Vodafone (LSE: VOD) 118p 1.3% 7.5% Tesco (LSE: TSCO) 246p 2.5% 6.0% Unilever (LSE: ULVR) 1,396p 1.5% 5.6% BAE Systems (LSE: BAE) * 371p 2.5% 5.1% Diageo (LSE: DGE) 856p 2.8% 4.7% GlaxoSmithKline (LSE: GSK) * 1,477p 2.7% 4.7% HSBC (LSE: HSBA) * 830p 4.0% 3.1% Average yield: - 2.61% 6.97%
It would be interesting to hear what companies fellow investors would choose to Invest in for the next 30 years.
If there was one company you could choose to Invest in over a 30 year period which would it be and why?
This is not an easy question to answer, it requires a lot of thought and it is very difficult to try and work out what will happen in the next few weeks let alone the next 30 years!
I recognise that none of us our Buffett & we probably should'nt invest like him given the advantages we have as private investors.
I personally prefer to just Buy and Hold, it is more cost effective as you don't constantly pay stamp duty and broker fees. Also I think the less decisions one has to make more often then not the better of they are & I am a strong believer that doing nothing MOST of the times is the right course of action.
Looking back over the last month what was the fuss all about with Soco going to around £2.50ish....
The reality is markets will always move, stocks will always go up and down. The trick is are you smart enough to asses the value of a share as well as a reasonable foresight to see where the future lies for a company and then have the patience to see out the value?