1 Warren Buffett Stock Trading at a Once-in-a-Decade Valuation to Buy Now and Hold Forever

A beaten-down with a massive competitive moat is usually a good stock to buy

Warren Buffett has made himself and the investors in Berkshire Hathaway (NYSE: BRK

B) very wealthy by identifying companies trading at great value relative to their long-term outlook

Often times, political and economic environments will dull the near-term outlook for a

Those are often opportunities for Buffett, particularly if he can identify impacted es that exhibit wide competitive moats

You can see that in some of Buffett's most recent purchases

For example, he has invested heavily into Constellation Brands (NYSE: STZ), which distributes some of the most Mexican beer brands in the U

Import tariffs threatened its core, but it saw some relief as the tax on alcohol has been waived (but not the tax on the aluminum cans the drinks come in)

Over the long run, however, it should be able to keep growing, making it a smart investment for those willing to buy and hold

But another Buffett investment looks even better value with a decade-low earnings multiple and an even stronger and competitive moat

Here's the Buffett stock value investors should buy now and hold forever

Image source: The Motley Fool

The stock to buy in the face of growing uncertainty President Donald Trump's tariffs are a threat to any company relying on importing ducts into the United States

With a rise in costs for distributors or retailers, imports are set to see a rise in price to help offset those tariffs

While most of them are currently paused, the Trump tariffs are set to go into effect on July 9

That's bad news for companies that don't have much pricing power versus comparable low-cost replacements from domestic viders

But companies with unique ducts, brands, or limited domestic competition will fare much better in the face of Trump's tariffs

Diageo is the company behind brands including Johnnie Walker, Tanqueray, Ketel One, Don Julio, and many other premium spirits

It's also the of Guinness, the iconic Irish stout

That means tariffs will take a big bite out of its

As such, distributors imported additional units into the U

Investors should expect margin deterioration this quarter, management says, but sales growth may only fall back modestly

In other words, management is weathering the storm pretty well

The damage would be far worse if it weren't for the strength of Diageo's brands and its competitive position

The wide moat keeping spirits up Diageo's biggest moat comes from its brand names

While its portfolio spans all s of price points, it has put a significant focus more recently on acquiring and building premium brands

Not only does that give it more leeway to increase prices (since it doesn't compete on price), it also plays into the trend for drinkers focusing on higher quality spirits

Diageo's whisky brands Johnnie Walker and Lagavulin benefit from the limited locations for scotch duction

And it's tough for new competitors to enter the market because the aging cess is an important factor for spirits scotch, especially on the high end

Johnnie Walker Blue is a blend that includes rare whiskys aged as long as 60 years

In other words, there aren't very many replacement ducts for Diageo's spirits

Management will pay a growing dividend each year on top of that

And with s trading at a price-to-earnings ratio of just 15. 6, near a decade low, the stock looks an absolute bargain right now

Adam Levy has positions in Diageo Plc

The Motley Fool has positions in and recommends Berkshire Hathaway

The Motley Fool recommends Constellation Brands and Diageo Plc

The Motley Fool has a disclosure policy.