There are few, if any, investors alive today who I respect more than Warren Buffett.
He didn't start out a billionaire. In fact, in his early life, he had very little wealth of his own.
But by diligently following a handful of very simple investing rules, the Oracle of Omaha, and CEO of Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B), has amassed a personal fortune in excess of US$167 billion today.
While you and I are unlikely to match that stellar level of success (though we can hope), Warren Buffett appeals to investors because anyone can follow in his footsteps using a similar investment approach.
As a value investor, Buffett prefers to buy into quality companies that he understands well at a fair price. He's also a proponent of buying stocks with strong barriers to entry, or 'moats', to fend off would-be competitors.
Then, of course, there's his famous long-term investing strategy.
With the Trump tariffs roiling stock markets around the world, this is a good reminder not to try to time the markets but to keep your eye on your long-term goals.
"Embrace what's boring, think long-term, and ignore the ups and downs," Warren Buffett famously advises.
He also made me step back and think with this insight, "Only buy something that you'd be perfectly happy to hold if the market shut down for 10 years."
Which brings us to S&P/ASX 200 Index (ASX: XJO) supermarket giant Coles Group Ltd (ASX: COL).
Image source: Getty Images
The ASX 200 stock ticking the Warren Buffett approval box
That's right.
I'd be happy to own Coles shares for a decade if the stock market shuttered its doors today.
I'm sure the ASX 200 stock will experience plenty of ups and downs during those 10 years. But I also believe that at the end of this stretch, Coles shares will have outperformed inflation, bank term deposits, and the broader ASX 200.
Warren Buffett is also well known for investing in more defensive stocks and for generally avoiding the tech sector.
And Coles' defensive nature has been on display during the Trump tariff fuelled market tantrums of late.
That's because Coles' business is broadly focused on selling essential items or consumer staples in investor speak.
That's helped Coles shares gain 8.6% over the past month, a month that saw the ASX 200 fall by 7.7%.
Which ties into another Warren Buffett investing nugget.
"The best investments provide real-world value, not just market value," he said.
Why Coles shares could keep outperforming
I think Coles shares will continue to enjoy tailwinds over the coming decade on numerous fronts.
First, it commands a market-dominating position, together with Woolworths Group Ltd (ASX: WOW). This provides a huge moat that Warren Buffett would likely approve of.
Second, Coles has invested billions of dollars in recent years in its automated distribution centres (ADCs) and customer fulfilment centres (CFCs). This should drive ongoing cost efficiencies in the years ahead.
Third, the ASX 200 stock should continue to appeal to passive income investors.
At its half-year results (H1 FY 2025), released on 27 February, Coles reported a 3.7% year-on-year increase in sales to $23.04 billion. With underlying net profit after tax (NPAT) of $666 million, up 6.4%, management increased the fully franked interim dividend by 2.8% to 37 cents per share.
Over the full year, Coles has paid out 69 cents a share in dividends. At yesterday's closing price of $20.50 a share, the ASX 200 stock trades on a fully franked trailing yield of 3.4%.
Now I've yet to ring him about holding Coles shares for 10 years. But I think Warren Buffett would approve.
