Long Term Investments

Long Term Investments are assets held for more than 1 year. They include the following:

  • Stocks
  • Bonds
  • Real Estate
  • Affiliates
  • Subsidiaries

In the balance sheet these investments are recorded "At Cost" or "Market Price", whichever is lower. If the investment has appreciated in value it will be recorded "At Cost". Meaning it is recorded at the price the company paid for the investment.

Find out what the company has invested in. There could be a very valuable investment that has appreciated in value hiding in its balance sheet.

 

Examples

 

The Coca-Cola Company has made an investment in a beverage company called Honest Tea. They make organic beverages. They bought Glaceau, the maker of Vitamin Water. Honest Tea and Glaceau's revenue has grown exponentially over the years, therefore their value has also increased.

 

Johnson and Johnson has been buying the parent companies of consumer products such as Rolaids, Neutrogena, Listerine, Neosporin, etc. These are the popular health care brands in the market. More and more people buy these products over time, thus the value of Johnson and Johnson's initial investment has increased.

 

Warren Buffet's Berkshire Hathaway owns large shares in stocks like Coca-Cola, Wells Fargo, Kraft Foods, Johnson and Johnson, and Wal-Mart. These stocks has greatly appreciated in value since he last bought them. And they are being recorded in Berkshire Hathaway's balance sheet "At Cost".

My Financial Analysis of Stocks

  • Archive: My Stock Holdings 2021 View My Analysis: My Stock Holdings 2021
    Posted May 4, 2022, 1:53 PM by Intelligent Investor
  • Archive: My Stock Research 2021 View My Analysis: My Stock Research 2021
    Posted Apr 30, 2022, 8:40 PM by Intelligent Investor
  • We Think the Bottom for this Mild Correction may have Happened this Past Thursday on February 24th We do not see a recession in the near horizon. The U.S. economy is still growing. The Federal Reserve is still accommodative. The only thing we see is people ...
    Posted Mar 2, 2022, 3:08 PM by Intelligent Investor
  • Our Plan is to Buy the Dips. Buy Whenever We See Red. We believe the geopolitical issue occurring in Ukraine will be short-lived. We also believe that amidst a high-inflationary environment, many U.S. Equities will prevail. We plan to ...
    Posted Feb 26, 2022, 11:04 PM by Intelligent Investor
  • Swapped Disney (DIS) for more Paramount Global (PARA) A couple of months ago, we sold most of our shares in Disney (DIS) in exchange for Paramount Global (PARA), formerly known as ViacomCBS (VIAC). Unfortunately for us, we had ...
    Posted Mar 2, 2022, 7:28 AM by Intelligent Investor
  • Archive: My Stock Holdings 2020 View My Analysis: My Stock Holdings 2020
    Posted Jan 23, 2022, 6:55 PM by Intelligent Investor
  • Archive: My Stock Research 2020 View My Analysis: My Stock Research 2020
    Posted Jan 23, 2022, 6:56 PM by Intelligent Investor
  • Buying the Dip in ViacomCBS (VIAC) and Sold Pfizer (PFE) A very big opportunity came today to buy ViacomCBS (VIAC) at a ridiculously low price. Unfortunately we had to sell Pfizer (PFE). Pfizer has been a big disappointment for us ...
    Posted Mar 29, 2021, 12:09 AM by Intelligent Investor
  • Accumulating ViacomCBS (VIAC) We believe there is a greater opportunity in ViacomCBS (VIAC). We have been accumulating the stock for the past year. Our analysis is a mere common sense. During the course ...
    Posted Jan 25, 2021, 5:25 PM by Intelligent Investor
  • Sold AXP, BRK.B, JPM, and WFC We sold all of our shares in American Express (AXP), Berkshire Hathaway Class B (BRK.B), J.P. Morgan (JPM), and Wells Fargo (WFC).American Express (AXP) - We just do ...
    Posted Jan 19, 2021, 7:53 PM by Intelligent Investor
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