If You Had Invested $500 in These 8 Companies With Warren Buffett, You’d Have Some Incredible Gains
Investing in stocks is a solid way to build wealth — and no one understands that better than Warren Buffett.
Check Out: I’m a Self-Made Millionaire: 5 Stocks You Shouldn’t Sell
For You: 4 Genius Things All Wealthy People Do With Their Money
If you’ve ever wondered how much you’d be worth if you invested in some of the same stocks as Buffett, read on. You will find out how much you’d be worth if you invested just $500 in some of his top stock picks at the same time he did.
Bank of America
In August 2011, Buffett was taking a bath when he had a so-called “Eureka!” moment. Many U.S. banks were still reeling from the 2008 financial crisis, and share prices were at an all-time low for many financial institutions — including Bank of America. Buffett decided to seize the opportunity.
In true Buffett style, he called Bank of America’s customer service line and asked to connect with the CEO about a potential investment. After some back-and-forth with a customer service rep, he connected with Brian Moynihan and ended up with $5 billion in Bank of America shares. At the time, the share price was around $7.
Today, Bank of America trades around $37 per share. So, if you bought 72 shares of Bank of America in August 2011 at $7 (a total of $504), your investment would now be worth $2,664 — a 429% return.
Read Next: Warren Buffett: 10 Rules for Young People Who Want To Get Rich
Apple
Buffett has historically shied away from tech stocks, but that changed in May 2016, when he bought 9.8 million shares of Apple at an average price of $109 each. At the time, Apple’s share price was trading very low compared to its earnings estimates and was flush with over $230 billion in cash on its balance sheet.
Eight years later, Mr. Buffett’s purchase has proven to be a solid decision, as Apple shares trade for about $180. If you had bought five shares in Apple at $109, or $545 total, your investment would now be worth $900. That’s a 65% return.
American Express
Buffett has a long history of investing in American Express. In the 1960s, he acquired 5% of the company for about $20 million. He held onto his shares during the credit card boom of the 1970s and 1980s and in 1994 made another significant investment, essentially doubling his stake in American Express to 10% through his holding company, Berkshire Hathaway, when shares traded for about $27.50 each.
Today, shares in American Express sell for about $230. If you had bought 18 shares of American Express in August 1994 at $27.50, or $495 total, your shares would be worth $4,140 today — a whopping 736% return.
Coca-Cola Company
Long a fan of Coke (he is rumored to drink five cans a day), it’s no secret that Buffett is one of Coca-Cola’s most prominent investors. He started building a position in the company in 1988 and in 1994 bought an additional 4.9 million shares for about $42 each, raising his ownership stake to 7.75%.
Today, Coca-Cola trades at around $62 per share. If you had purchased 12 shares in 1994 at the same time as Buffett, they would be worth $744 today — a 48% return. While this return is not quite as impressive as others on this list, Coca-Cola has a lengthy history of issuing quarterly dividends, adding to its value for investors.
Chevron
During the third quarter of 2021, Buffett’s Berkshire Hathaway began accumulating a stake in Chevron. By the end of the year, it owned 2.5% of the oil and gas company. While the exact price of the transaction is unclear, shares traded at around $97 in late July 2021.
Since the initial buy-in, Buffett has purchased more shares (and sold some, too). Today, the price per share is about $160. If you had purchased five shares in Chevron at $97 each — or $485 — your shares would be worth $800 today. That’s a 65% gain — not bad for only three years.
Occidental Petroleum
Occidental Petroleum is an oil, gas and chemical company that explores and extracts at sites in the U.S., Middle East, Africa and Latin America. In early 2019, Buffett’s Berkshire Hathaway acquired 100,000 shares of preferred stock in Occidental, and since then, it has increased its stake multiple times. It now owns over 25% of the company.
While Berkshire’s initial 2019 investment in OXY on a per-share basis is unclear, the share price was around $65 in February 2019. Today, it trades at around the same. So, if you bought eight shares in Occidental at $65, or $520 total, in February 2019, they would obviously now be worth the same.
The Occidental Petroleum investment hasn’t seen the same gains as some of Buffet’s other stocks. However, like Coca-Cola, it issues a quarterly dividend, adding to its value. Plus, Buffett has a reputation for buying and holding investments, so it may be early in the game to evaluate its performance.
Moody’s
In 2001, Berkshire Hathaway picked up 24 million shares of Moody’s Corporation at about $20.79 per share. Moody’s provides credit ratings, market research, and risk analysis on businesses, debt instruments and securities, helping investors evaluate decisions during periods of volatility.
Today, shares in Moody’s trade at around $394 each — making it one of Buffett’s strongest performers. If you had purchased 24 shares in Moody’s back in 2001, your investment would be worth $9,456 today — an extraordinary 1,795% gain.
Capital One Financial Corporation
In late March 2023, Buffett’s Berkshire Hathaway acquired nearly $1 billion in shares of Capital One Financial Corporation. At the time, shares in Capital One traded for about $96.
Just a little over a year later, Capital One trades for $144 per share — a 50% gain. If you had purchased five shares of Capital One at the same price as Buffett, they would be worth $720 today.
More From GOBankingRates
This article originally appeared on GOBankingRates.com: If You Had Invested $500 in These 8 Companies With Warren Buffett, You’d Have Some Incredible Gains
