Is Warren Buffett Right to Be Holding UPS? - Motley Fool
According to Berkshire Hathaway's latest quarterly SEC filing, Warren Buffet's investment vehicle is holding nearly 60 thousand shares in United Parcel Service. While it's one of his smaller holdings, the investment guru is known for only taking positions in companies he's willing to hold for the long term because he believes in their core value. That said, let's take a look at the investment case for UPS and see whether it's a Buffet-like stock or not.
Why UPS is a Buffett stock
Given Buffett's preference for long-term investments with sustainable cash flow streams, UPS appears to immediately fit the bill. Alongside FedEx and Deutsche Post's DHL, UPS is one of the dominant forces in express and courier service. Throw in the long-term growth opportunity from burgeoning e-commerce demand and UPS looks well set to generate a steady flow of earnings and cash flow for years to come.
According to Berkshire Hathaway's latest quarterly SEC filing, Warren Buffet's investment vehicle is holding nearly 60 thousand shares in United Parcel Service. While it's one of his smaller holdings, the investment guru is known for only taking positions in companies he's willing to hold for the long term because he believes in their core value. That said, let's take a look at the investment case for UPS and see whether it's a Buffet-like stock or not.
Why UPS is a Buffett stock
Given Buffett's preference for long-term investments with sustainable cash flow streams, UPS appears to immediately fit the bill. Alongside FedEx and Deutsche Post's DHL, UPS is one of the dominant forces in express and courier service. Throw in the long-term growth opportunity from burgeoning e-commerce demand and UPS looks well set to generate a steady flow of earnings and cash flow for years to come.
