The Motley Fool·2026-03-20 08:06Core Insights - Warren Buffett's tenure as CEO of Berkshire Hathaway culminated in the company reaching a market capitalization of one trillion dollars before his retirement [1] - Buffett's investment strategy focused on long-term holdings, particularly in companies like Coca-Cola, American Express, and Moody's, which have consistently generated significant returns [2][4] Investment Performance - Coca-Cola, American Express, and Moody's are highlighted as key investments, with Coca-Cola being held since 1988, American Express since 1991, and Moody's since 2000 [5] - The cost basis for these stocks is notably low due to their lengthy holding periods: Coca-Cola at approximately $3.25, American Express at $8.49, and Moody's at $10.05 per share [5] - These investments have allowed Berkshire Hathaway to double its initial investment every 21 to 30 months through dividends [7] Dividend Growth - Coca-Cola has increased its annual dividend payout for 64 consecutive years, while American Express and Moody's have raised theirs for 17 and 5 years, respectively [6] - Projected annual payouts are $2.06 for Coca-Cola, $3.80 for American Express, and $4.12 for Moody's, resulting in yields on cost of 63%, 45%, and 41% respectively [7] Competitive Advantages - Companies like Coca-Cola, American Express, and Moody's possess well-defined competitive advantages that contribute to their status as dividend powerhouses [9] - Coca-Cola's global operations and effective marketing strategies have allowed it to maintain strong consumer connections across generations [10] - American Express benefits from transaction fees and annual fees from affluent clientele, which provides stability during economic fluctuations [12] - Moody's has a dual operating model that thrives in varying economic conditions, with its debt-rating segment benefiting from low interest rates and its analytics segment gaining demand during uncertainty [13]