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

  • Exchanged AT&T (T) for Time Warner (TWX) and Dumped Hilton Worldwide (HLT) I exchanged AT&T (T) for Time Warner (TWX). Their merger currently gives TWX a 6% premium. AT&T is offering $107/share for TWX. Time Warner is currently priced ...
    Posted Sep 1, 2017, 4:36 PM by Intelligent Investor
  • My Stock Holdings 2017 View Analysis: My Stock Holdings 2017Hilton Worldwide Holdings (HLT) split into 3 companies. So we now own the following 3 Hilton companies:1) Hilton Worldwide Holdings (HLT)2) Hilton ...
    Posted Aug 28, 2017, 6:46 PM by Intelligent Investor
  • Repurchased Apple After Warren Buffett Confirms He Purchased it As a rule-of-thumb, if an investment has a Return on Equity (ROE) of greater than 30%, it means the company has a Durable Competitive Advantage. Apple's Return ...
    Posted Jun 5, 2017, 12:35 PM by Intelligent Investor
  • Purchased Hilton Hotels in Anticipation of a 3 for 1 Stock Spin-Off Last December I purchased Hilton Hotels in anticipation of a 3 for 1 stock spin-off. In other words, Hilton Hotels will be splitting into 3 independent companies. The most ...
    Posted Mar 1, 2017, 6:12 PM by Intelligent Investor
  • Warren Buffett's 5 Best Investing Tips 1) Don't buy or sell based on the headlines.2) Don't try to profit from bubbles.3) Put your emotions aside.4) Always invest in productive assets.5 ...
    Posted Aug 19, 2017, 4:26 PM by Intelligent Investor
  • Sold Wabco (WBC) to Raise Cash in Case there is a Recession The signs of a recession are getting stronger so I've decided that I needed to raise cash. Out of all the stocks I own, Wabco (WBC) seems to be ...
    Posted Sep 7, 2016, 10:22 AM by Intelligent Investor
  • Sold Chicago Bridge and Iron Chicago Bridge and Iron (CBI) comprise 2.5% of my overall portfolio. I first bought this stock at around $46/share. I sold it at $34. So, I basically took ...
    Posted Aug 25, 2016, 9:50 AM by Intelligent Investor
  • 5 Things to Keep in Mind for Entrepreneurs Interesting article from Mark Cuban.CNBC Article
    Posted Mar 18, 2016, 9:54 AM by Intelligent Investor
  • Morningstar's 5-Star Stock Picks 2015 View My Financial Analysis: Morningstar 2015I analyzed Morningstar's 5-star stock pick last year and I have come to the conclusion that many of Morningstar's 5-star ...
    Posted Mar 10, 2016, 1:54 PM by Intelligent Investor
  • IBM may have Bottomed at $117/share IBM stock may have bottomed at $117/share a few weeks ago, the stock is now trading at around $135/share. IBM was just upgraded by Morgan Stanley from a ...
    Posted Mar 10, 2016, 6:39 PM by Intelligent Investor
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