Warren Buffett’s strategic investments have made Berkshire Hathaway outperform the market with a compounded annual gain of over 19% for 58 years, compared to just over 10% for the S&P 500 Index. Currently, two prime stocks endorsed by Buffett are Coca-Cola (NYSE: KO) and Amazon (NASDAQ: AMZN).
Coca-Cola
Berkshire Hathaway purchased 400 million shares of Coca-Cola in 1994, earning a dividend of $75 million, which grew to $704 million by 2022, reflecting Coca-Cola’s commitment to increasing its dividends over 50 years. The annual dividend is currently $1.94 per share, yielding 3.1% as of June 18, significantly higher than the S&P 500.
Amazon
Berkshire Hathaway began investing in Amazon in 2019, with Buffett acknowledging regret for not acting sooner. Amazon’s stock is currently valued at 40 times forward earnings estimates, a decrease from over 50 last year, offering a buying opportunity in its two high-growth sectors: e-commerce and cloud computing.
