The stock market exhibits various trends, and investors continue to search for undervalued stocks with sustainable competitive advantages. We will review three companies whose shares have a wide economic moat.
Current Stock Market Trends
In the last three months, the S&P 500 (SPX) index has dropped nearly 5%, reverting to early November levels. Despite initial optimism following President Trump's inauguration, gains have dissipated amid tariff-driven fears. However, the stock market often rebounds after such declines, with analysts anticipating new highs.
Brown-Forman Stock Analysis
Brown-Forman has been in the premium alcohol market for over 150 years, strengthening its global presence through local distributors and limited releases. In the 2024 fiscal year, Brown-Forman confirmed organic net sales growth between 2% and 4% due to cost-reduction strategies. The company has consistently increased dividends for 41 years, making it a reliable investment.
Prospects for Berkshire Hathaway and American Express
Berkshire Hathaway, under Warren Buffett's leadership, continues to show positive trends. In 2024, the company held a record $325 billion in reserves, enabling effective responses to investment opportunities. American Express, one of the oldest credit companies, focuses on affluent clients and continues to grow with premium services. In 2025, dividends are expected to increase by 17%, indicating growing investor confidence.
The analysis demonstrates that the stocks of Brown-Forman, Berkshire Hathaway, and American Express remain promising investments despite market fluctuations. These companies successfully navigate competitive challenges thanks to their economic advantages.
