Warren Buffett once said that, “It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price … when buying companies or common stocks, we look for first-class businesses accompanied by first-class managements.” While it’s up for debate what exactly makes a company wonderful, reputation clearly plays a strong role in Buffett’s portfolio.
A good reputation is the foundation of long-term profits. If people don’t respect a brand, they are not likely to become repeat customers. A new report from consulting firm CoreBrand names which brands are most respected by consumers. The firm looks at familiarity and favorability when selecting brands, and uses the only brand research methodology to be validated by the Marketing Accountability Standards Board. Over 500 companies were eligible for the analysis.
Almost half of the ten most-respected brands are from the consumer staples sector, but other sectors such as healthcare, technology, and industrial goods are also represented. Interestingly, Buffett’s Berkshire Hathaway (NYSE:BRKA) owns common shares in four of the top ten brands, according to the latest Securities & Exchange Commission filings.
Let’s take a look at the ten brands earning respect from consumers and investors.