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

  • Stocks That We Bought and Sold for the Past Year to Date Sold John Deere (DE), it is a cyclical business and the trade war the U.S. has with China isn't making things any better. Berkshire Hathaway also sold their ...
    Posted Jul 27, 2019, 12:04 PM by Intelligent Investor
  • My Stock Holdings 2018 View Analysis: My Stock Holdings 2018
    Posted Jul 24, 2019, 7:47 PM by Intelligent Investor
  • My Research 2018 View Analysis: My Research 2018
    Posted Jul 24, 2019, 7:46 PM by Intelligent Investor
  • Berkshire Hathaway Sells Shares of PSX Berkshire Hathaway has been selling its shares of Phillips 66 (PSX). They held about 35 million shares of PSX stock as of the 2nd quarter of 2018, which is down ...
    Posted Aug 28, 2018, 1:32 PM by Intelligent Investor
  • Sold All of L Brands (LB) and Park Hotels and Resorts (PK) An article in CNBC scared us. The parent company of Victoria Secret, L Brands (LB) could be a broken company.https://www.cnbc.com/2018/05/24/victorias-secret-might ...
    Posted Jul 26, 2018, 3:41 PM by Intelligent Investor
  • We Sold All of Our Shares in PayPal, We Saw Something Else We Liked Better We dumped PayPal (PYPL). The P/E Ratio is currently at 66 which is very high. The slowdown in earnings and revenue does not justify a P/E Ratio that ...
    Posted Aug 2, 2019, 4:10 PM by Intelligent Investor
  • U.S. Bank's (USB) Return on Equity is Greater than Wells Fargo (WFC) We just realized that U.S. Bank's (USB) Return on Equity is the highest out of all the major banks. It is greater than Wells Fargo (WFC), J.P ...
    Posted Feb 3, 2018, 8:20 AM by Intelligent Investor
  • My Research 2017 View Analysis: My Research 2017
    Posted Jan 15, 2018, 4:12 PM by Intelligent Investor
  • Looks Like Capitulation in Viacom (VIAB) Capitulation is when large institutional investors give up on a stock and sell all of their holdings in that stock. Capitulation is a sign of a bottom for a stock ...
    Posted Nov 17, 2017, 10:38 AM by Intelligent Investor
  • IBM's Fortunes Finally Turns Around Today Warren Buffett purchased IBM shares in the year 2012 worth billions of dollars. Yet the stock has pummeled and has been pounded downwards for the past 5 years. The company ...
    Posted Aug 2, 2019, 4:09 PM by Intelligent Investor
Showing posts 1 - 10 of 37. View more »