Learn from Warren Buffett’s 2008 stock pick - Wrigley
At the Warren Buffett stock picks website, we devote time to learning how to invest like Warren Buffett. Throughout the years, the Warren Buffett portfolio has been consistent through his many years as CEO of Berkshire Hathaway. Warren Buffett companies can be described as thus:
- companies that are easy to understand
- companies that have a competitive advantage from their competitors
- companies that the shareholder will own for the long term
- companies bought when the valuation was right
- companies that stand the test of time
Let’s look at the latest Warren Buffett stock pick: Wm. Wrigley Jr. Company. Wrigley is the world’s biggest chewing gum company which launched in 1891. Everyone’s heard of it. Everyone’s chewed it. It’s brands include Juicy Fruit, Wrigley’s Spearmint, Doublemint, Excel, Extra, Freedent and many more. How’s that for competitive advantage?
Let’s look at how the deal came about. Wrigley is the typical Warren Buffett stock. It has all the desired qualities of a Buffett company. Warren Buffett got a stake in the company when he helped Mars takeover Wrigley. With the credit crunch, Berkshire Hathaway’s cash position made him one of the few players who could help finance the deal. And it got him a discounted stake in Wrigley in the process.
So what can we learn from this Warren Buffett 2008 stock pick? Iconic companies are on sale. But before we jump the gun on the shopping trip, ask yourself if it has all the ingredients of a Warren Buffett stock pick. Look at the fundamentals of the company. Do not pay attention to the macroeconomics but look at the history of the company. Is it a simple business? Does it have a business moat? Is it a company worth holding forever?
If you answer to these questions is yes, then you just might have discovered a Warren Buffett stock pick.
For all intents and purposes, Warren Buffett already thinks that the United States is in a recession and it will be longer and deeper than what people are predicting. Let’s get one thing clear. Fortunes are made when people are in a panic. Stay the course of finding good companies and come out looking like a rose. Here’s your chance of making a fortune buy learning how to invest like Warren Buffett.
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