The Stocks of W Buffett

We will explore the stocks in which W Buffer invest double in every 2 to 5 years. They include:

• Coca-cola
• Moody's
• American Express

This research is to verify the message given by the article: https://www.fool.com/investing/2020/10/06/warren-buffet-doubles-his-money-on-these-stocks-ev/

It operates in every country around the world. It has a solid 20% share of the cold beverage market in developed countries, but has plenty of opportunity to grow its 10% market share in the faster-growing emerging economies. Coca-Cola is one of the most recognized brands in the world, and it's done an excellent job of marketing to new and current users. By tying its products in with the holidays and using a variety of social media and celebrity ambassadors, the company has never struggled to be a front-and-center brand.

It is an absolute money machine for Warren Buffett's company. That's because Berkshire Hathaway's initial cost basis is only $10.05 a share (Moody's closed at almost $294 this past week). With the company paying out $2.24 in dividends each year, Berkshire's annual yield based on its original cost is 22.3%. This means Berkshire is doubling its initial investment every 4.5 years, without reinvestment.

AmEx has been a staple in Berkshire Hathaway's portfolio since 1993, with an initial cost basis of a mere $8.49 a share. Based on the $1.72 per share that American Express is paying out, Berkshire's yield on its initial cost is a delectable 20.3%. It takes just shy of five years, without reinvestment, for Buffett to double his money from AmEx's dividend payout.

The beauty of American Express' business model is twofold. First, the company targets affluent consumers. The well-to-do are less likely to reduce spending or fail to pay bills when economic uncertainty arises. This fact has always helped AmEx cope well with minor economic contractions.

Secondly, American Express is a double-dipper: In addition to being a payment facilitator for merchants, it also lends to consumers and businesses. This model exposes AmEx to rising credit delinquencies during recessions. Thankfully, recessions historically are far shorter than periods of economic expansion. AmEx is built to take advantage of an expanding U.S. and global economy over the long run.

# A tibble: 3 x 6
  ticker src   download.status total.obs perc.benchmark.dates threshold.decision
  <chr>  <chr> <chr>               <int>                <dbl> <chr>             
1 KO     yahoo OK                     41                    1 KEEP              
2 MCO    yahoo OK                     41                    1 KEEP              
3 AXP    yahoo OK                     41                    1 KEEP