© Reuters.
Berkshire Hathaway (NYSE:), the conglomerate managed by Warren Buffett, has offloaded its entire investment in consumer goods giant Procter & Gamble (NYSE:) (P&G), despite the company’s strong financial track record. In the third quarter, Berkshire liquidated approximately $7 billion in equities, including its full stake in P&G, a company known for its 67-year history of consistent dividend payments and robust cash flow.
The decision to sell comes even as P&G maintains a solid reputation in the market, characterized by a wide economic moat—a term used to describe a company’s ability to maintain competitive advantages over its rivals to protect its long-term profits and market share. This move by Berkshire Hathaway might raise eyebrows among investors, given P&G’s status as a Dividend King, a title awarded to companies with at least 50 consecutive years of dividend increases.
Despite Berkshire Hathaway’s divestment, market signals indicate that Procter & Gamble continues to be considered a viable purchase option for investors looking for stable returns and resilience in their portfolios. The sale of such a significant holding is likely to attract attention from the investment community, as stakeholders assess the implications of Berkshire’s latest strategic adjustments.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
Read the full article here
