This Is What Warren Buffett Says Is Most Important When Evaluating a Business
If you look at Berkshire Hathaway's portfolio, it's easy to see a common trend among the largest holdings, which include Coca-Cola and Apple. They are resilient businesses that have wide moats, which is a defendable competitive advantage.
Owner and billionaire investor Warren Buffett values companies with moats, and it's often due to a company's strong underlying brands. There's one thing that he says is the most important when it comes to evaluating a business: Pricing power. That all comes back to having a strong brand, because without that, a company wouldn't have much pricing power at all.
A couple of stocks that have been doing well over the past year, demonstrating their pricing power, are Kraft Heinz (NASDAQ: KHC) and PepsiCo (NASDAQ: PEP). Here's why these are two investments you should consider buying and holding for the long haul.
Source Fool.com
