Warren Buffett, the legendary investor known as the Oracle of Omaha, continues to showcase the power of long-term investing with his firm Berkshire Hathaway. In 2023, Berkshire received a staggering $736 million in dividends from Coca-Cola, a number that is expected to rise to $776 million this year. This amount surpasses the original cost of the shares, which were purchased for $1.3 billion over 30 years ago.
Buffett’s strategy of holding onto high-quality shares for the long haul has proven to be successful, as evidenced by Coca-Cola’s consistent dividend growth. In 2024, the beverage giant raised its annual dividend for the 62nd consecutive year, further solidifying Buffett’s reputation as a master investor.
In contrast to Buffett’s approach, day trading has gained popularity among individuals looking to profit from short-term price fluctuations. However, studies show that as many as 90% of day traders end up losing money, leading most to quit within two years.
Instead of chasing quick gains through day trading, many investors are turning to established companies like Experian (LSE: EXPN) for long-term wealth building. As one of the world’s largest data analytics and credit reporting firms, Experian’s diverse revenue streams and strong growth potential make it an attractive investment opportunity.
While Experian’s stock may be richly valued, the company’s solid financial performance and growth prospects in emerging markets like Latin America suggest that it has the potential to deliver strong returns over time. By following Buffett’s philosophy of investing in high-quality companies and holding onto them for the long term, investors can build sustainable wealth in the stock market.
