Durable Competitive Advantage of Warren Buffett’s Favorite Companies

Warren Buffett

August 2015 was a month of roller coaster ride for most traders and investors.

In 2015, a serious of bad news such “Grexit” Greece exit, China’s Yuan devaluation and slower economic growth, Fed rate hike decision has sent stocks across global markets plunging and Straits Times Index (STI) falling below 3000. As of today, the Straits Times Index (STI) stands at 2,885.32.

I read about the “durable competitive advantage” of Warren Buffett’s favorite companies and was curious about how those companies will fare in times like this where financial analysts believe we are heading towards a bear market.

Will the market plunge like the 2008 financial crisis?

Here goes:

American Express

American Express

Coca Cola

Coca Cola

Costco Wholesale Corporation

Costco Wholesale Corporation

GlaxoSmithKline

GlaxoSmithKline

Johnson and Johnson

Johnson and Johnson

Moody’s Corporation

Moody's Corporation

Procter & Gamble

Procter & Gamble

Wal-Mart Stores Inc

Wal-Mart Stores Inc

Wells Fargo

Wells Fargo

My Personal Opinion

The plunge during 2008 financial crisis can be seen from the charts of most Warren Buffett’s stock picks like American Express, Coca Cola, GlaxoSmithKline, Moody’s Corporation, Procter and Gamble and Wells Fargo.

At this point of time, we can see that the above stock prices have not fall to levels as compared with levels during the 2008 financial crisis. At this moment, if you notice from the 10 year charts above, stocks like American ExpressCoca ColaWells Fargo, Costco Wholesale Corporation and Moody’s Corporation are still pretty resilient!

Leave a Reply

Your email address will not be published. Required fields are marked *