Top 5 Stocks in Berkshire Hathaway's portfolio
- Coca-Cola - Founded in 1886
- Wells Fargo - Founded in 1852
- American Express - Founded in 1850
- Procter and Gamble - Founded in 1837
- Kraft - Founded in 1903
You'll still hear these kinds of statements just about everyday on business news for businesses like P&G.
Yet, 20 years later in 2007, P&G's stock was up 1000% excluding dividends. How many back in 1987 would have expected that? By comparison, the S&P 500 was up a little over 400% during that period. This 1000% return happened even if you were unlucky and bought the stock before the 1987 crash* happened. It makes little sense to expect those kind of returns going forward but I never underestimate the economics of these franchises that seem "boring and safe". They reliably deliver good to great returns (at lower risk) with a time horizon that is long-term and, of course, if purchased at fair prices (ie. not 1999).
* If you bought it after the 1987 crash returns increase to ~1400% excluding dividends.