Warren Buffett has invested in multiple businesses such as Apple, Coca-Cola, Amazon and American Express. However, his “dream business” isn’t one on the Fortune 500, but a small candy company called See’s Candies which he bought for $25 million in 1972.
Since then, See’s Candies has generated over $2 billion in income for Berkshire Hathaway, Warren Buffett’s conglomerate. As a cash cow for Berkshire, Warren uses See’s profits to invest in other quality companies. For example, he bought more than $1 billion worth of Coca-Cola shares in 1988, a position that’s worth $25 billion today.
With its strong brand recognition in the West Coast, notably California, the chocolate maker sees a stable annual demand for its products thanks to its strong brand-loyalty moat. This gives See’s Candies an edge over its competitors despite frequent price hikes.
Charlie Munger, Buffett’s long-time business partner, once said that they could raise prices by 10% a year and no one would care!
How to invest like Berkshire Hathaway
Although See’s Candies is not a publicly traded company, you can still invest in Berkshire Hathaway’s stock holdings if you’re a fan of Warren Buffett’s investing philosophy.
As of March 2022, Berkshire’s top 10 holdings now include:
- Bank of America
- Kraft Heinz
- Occidental Petroleum
- American Express
- U.S. Bancorp
- Nu Holdings
You can buy these stocks through a brokerage platform like Syfe Trade. You’ll enjoy free trades every month and low commissions on trades thereafter.
What’s more, Syfe Trade’s fractional investing feature means you can buy US stocks with as little as US$1. This makes it easy for you to diversify your stock holdings or dollar cost average.
Sign up with Syfe Trade today to get a welcome gift of S$60. Remember to enter the code “TRADENEW” when creating your account. Fund your account with a minimum of S$2,000 and make your first trade in order to claim your welcome offer.