Warren Buffett is known for his investment strategy of buying quality companies at reasonable prices. He looks for businesses with strong competitive advantages that can deliver consistent profits and cash flows over the long term. Buffett’s holding company, Berkshire Hathaway, has significant positions in several well-known consumer brands.
These companies could see a boost in sales during the upcoming 4th of July holiday. Coca-Cola is the world’s largest beverage company. It offers over 500 brands in more than 200 countries.
Coca-Cola products are enjoyed at a rate of 1.9 billion servings per day globally. Constellation Brands is the largest beer import company in the United States. Its portfolio includes popular brands like Corona Extra, Modelo Especial, and Pacifico.
The company also offers wines and spirits. Kraft Heinz is the third-largest food and beverage company in North America. It owns household names such as Kraft, Heinz, Oscar Mayer, and Maxwell House.
The company generates substantial revenues, especially in the North American market. Kroger is a leading American supermarket chain.
Buffett-backed companies thriving this July
It sells a wide range of products, from fresh foods to general merchandise. Kroger also operates fuel centers and has a significant online presence. These Buffett-backed companies are well-positioned to benefit from increased consumer spending during the 4th of July festivities.
Their strong brands, extensive distribution networks, and diverse product offerings make them attractive investment options for those seeking reliable dividends and growth potential. Another Buffett stock that looks particularly appealing right now is Diageo Plc. This company owns over 200 beverage alcohol brands, including Johnnie Walker, Tanqueray, and Guinness.
About 39% of Diageo’s sales come from North America. Diageo’s shares are currently trading at a price-to-earnings ratio of just 15.6, near a decade low. This valuation looks very attractive given the company’s strong competitive position and growth prospects.
Management expects Diageo to achieve operating leverage by 2026, resulting in earnings per share growth of around 10% even with mid-single-digit revenue increases. The company also plans to pay a rising dividend each year. Diageo benefits from high barriers to entry in key categories like scotch whisky.
Its premium brands give it pricing power and align with the trend of consumers trading up to higher-quality spirits. These advantages should allow Diageo to weather economic uncertainty and deliver solid long-term returns for shareholders.
