Over his legendary career as CEO of Berkshire Hathaway , Warren Buffett has favored investing in strong brands that can remain strong for many years. He's content to hold the shares regardless of how the stock performs in the near term because he knows over a long period of time, a stock's return tends to mirror a company's return on invested capital (ROIC) -- an alternate measure of return on equity . These are useful metrics in determining how well a company can turn capital employed into profits over the long term.
Kraft Heinz (NASDAQ: KHC) and Apple (NASDAQ: AAPL) are two of Buffett's top equity investments at Berkshire. Whether you are looking for dividend income or capital appreciation, both stocks have something to offer.
Image source: The Motley Fool.
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Warren Buffett Loves These Stocks. Are They Right for You?