2026-01-04 16:25:29

Many people only focus on the high returns of tech stocks, but the investment logic in the consumer sector is equally worth exploring.

There is a classic case: a well-known consumer company split strategically, separating its formula headquarters from its bottling plant. This move seemed simple but profoundly changed the business model. In the second year after the split, a famous investor began to buy continuously, eventually acquiring a 25% stake in the company.

The story that followed is even more interesting—35 years later, this investment has generated nearly $8 billion in cumulative dividends, with the stock price increasing 23-fold, and by 2023, its market value exceeded $24 billion. This isn’t about complex trading techniques; it’s about recognizing the business model and holding on tightly.

I recently realized that the core of investing isn’t about pursuing the highest returns but about understanding the essence of business operations. Each field—consumer, technology, finance—has its own unique logic. True gains often come from having a sufficiently deep understanding of a particular sector and maintaining a long enough holding period.

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UnruggableChad

· 23h ago

Hold on tight, this is the way to go, not like those who chase the hot trends every day. Persistence is the key to making money. It looks simple but is the hardest to achieve. Consumer stocks are severely undervalued, and the tech bubble is really not small. Long-termism is truly invincible; a 35-year story says it all. People who understand the essence of business make big money; others are just clouds of dust. Well said. Most people are just too greedy, chasing extreme returns and ending up losing money. This analysis is excellent. The logic of consumption is indeed more stable than technology. Extending the holding period eliminates anxiety. Simple and straightforward is very effective.

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MetaverseVagabond

· 01-07 10:48

Holding onto it for 35 years to earn 23 times more, I just want to ask how many people can still do that these days.

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LeverageAddict

· 01-06 10:13

Holding for 35 years and earning 8 billion, this is true passive income. It's much better than day trading every day.

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BearMarketGardener

· 01-05 13:14

$8 billion in dividends... this is the real guaranteed win, much more reliable than high-frequency trading. Basically, it's about choosing the right track and then lying low—this is the hardest part. The pitfalls of consumer stocks—after stepping on them a few times, I don't want to touch them again.

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CryptoMotivator

· 01-04 16:52

80 billion USD in dividends, it's really just sitting and earning money, so jealous Others saw through the essence of business early and just sat back to win, while I am still chasing after the ups and downs The key is to hold on, don't keep switching stocks every damn day It's true that consumer stocks are right, but why is the risk of tech stocks so high? 35 years, how strong is that patience... I can't learn it Long-term holding sounds easy, but actually doing it is really hard, who can endure it? This is called "see it clearly and hold on tightly," why can't I do that? It sounds like nonsense, but those who really make big money do it this way The move to separate the formula was brilliant, changing the entire game rules

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RugPullSurvivor

· 01-04 16:52

Wow, holding for 35 years and gaining 23 times? That's true wealth creation, unlike some people chasing hot topics every day and getting chopped up by the market. Wait, are you talking about the Coca-Cola thing? Buffett's move was indeed brilliant. Actually, everyone understands this principle, but the problem is execution. Most people simply can't sit still. Consumer stocks are indeed undervalued, but only if you find the right companies; otherwise, the probability of being left behind is even higher. This story is inspiring, but honestly, I would have been scared out during some correction, haha. Long-termism sounds great, but in reality, a collapsed mindset during execution is the norm.

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MidnightMEVeater

· 01-04 16:50

Good morning, reflections at 3 a.m... Holding on tightly for 35 years, this is true midnight arbitrage, just that others are using time instead of gas wars.

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WhaleWatcher

· 01-04 16:45

Hold on tight for 35 years—that's true investment wisdom. --- Tech stocks surge easily numb the senses; it's actually consumer sectors that test your resolve. --- Wow, $8 billion in dividends? That's the power of compound interest over time. --- Business models are the core; most people are just too impatient. --- Spotting a good business can really change your life, but the key is no one can stick with it that long. --- The consumer sector is severely undervalued; everyone is thinking about tech to get rich overnight. --- Splitting this move is crucial; changing the business model directly breaks through the ceiling. --- 23 times earnings—that's what real value investing is all about. --- If you don't understand business logic and just operate blindly, no matter how much money you have, you won't be able to make it work.

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LiquidatedTwice

· 01-04 16:33

Holding on tightly is the key, which is why the stocks I lost the least on are actually the consumer stocks I forgot about.

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