3 Consumer Compounders That Fit Warren Buffett's Playbook. I'd Hold Them Forever.
Coca-Cola (NYSE: KO) is an almost perfect example of Warren Buffett's investment approach. For starters, Buffett owned it for decades while he was CEO of Berkshire Hathaway (NYSE: BRKA) (NYSE: BRKB) . But there's more to the story, and it helps explain why you might also want to consider Procter & Gamble (NYSE: PG) , a stock I own, and Kimberly Clark (NASDAQ: KMB) today. The key is that they all have strong businesses that sell products consumers want and need in good times and bad. Here's a look at each one. Buffett liked to buy companies with pricing power, steady cash flow, and a long record of growing value. Coca-Cola, one of the world's most important beverage makers , essentially sells expensive flavored water. While it would be easy enough for consumers to switch to free tap water during hard times, Coca-Cola's brand loyalty is impressive. Notably, despite today's increasingly budget-conscious consumers, Coca-Cola was able to increase organic sales by a huge 7% in the third quarter of 2026. That's impressive consistency in the face of adversity. Image source: Getty Images. Continue reading