Beyond Index Funds: 2 Stocks That Teach You How to Think Like a Value Investor

Some stocks can teach you to think like a value investor by providing real-world opportunities to practice the patience to let your investment grow, apply disciplined research to understand their respective business models, and leverage the skill of recognizing intrinsic value versus market price. Broadly speaking, long-term investors should develop a mindset of seeking out quality companies, rather than chasing market trends.

The stock market is not always efficient in the short term. The current stock price of any given company reflects the near-term.-term supply and demand, news, and investor sentiment about that business. When a company retains a reasonable valuation, and the underlying company retains a favorable intrinsic value (its true worth based on future cash flows and assets), this can present an intriguing opportunity for value investors to put cash to work.

Here are two such companies to consider for your portfolio that you can buy and hold for the long run.

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1. Coca-Cola

Coca-Cola (NYSE: KO) is a quintessential value stock prized by investors like Warren Buffett for its predictability, durable competitive advantages, and consistent shareholder returns. Its relatively non-cyclical demand has made it broadly recession-resistant, as consumers typically buy beverages regardless of the economic climate. And, having one of the world's strongest brands allows Coca-Cola to raise prices to offset inflation without a significant loss in sales volume.

The company has increased its dividend for 63 consecutive years as of 2025, and offers a reliable yield of approximately 2.9%. The company primarily produces and markets beverage concentrates and syrups. It sells these concentrates to over 200 bottling partners worldwide, who handle the capital-intensive work of manufacturing, packaging, and distribution. This system allows Coca-Cola to maintain high operating margins and low capital expenditures while benefiting from a massive, global physical distribution network that is nearly impossible for competitors to replicate.

In Q3 2025, Coca-Cola's net revenue rose 5% year over year to $12.5 billion, driven by a 6% increase in organic revenue. Net income for Q3 2025 surged 30% to $3.7 billion, and the company maintained an impressive gross profit margin of over 61% along with a comparable operating margin of 32%. The company is set to generate roughly $9.8 billion in projected free cash flow for the full year 2025, which provides ample capacity for dividends and reinvestment.

Coca-Cola is diversifying its portfolio beyond traditional carbonated soft drinks into high-growth areas such as energy drinks, coffee, ready-to-drink alcoholic beverages, and value-added dairy. The company generates a significant portion of its revenue overseas and has strong positions in fast-growing emerging markets like Latin America and parts of Asia-Pacific.

Its localized production strategy in many regions helps mitigate risks from tariffs and supply chain disruptions. Coca-Cola's trailing-five-year return, including dividends, is around 50%. This stock may not be the most exciting in today's market environment, but its robust business model, financial fortitude, and consistent dividend could make it a no-brainer buy for some long-term investors.

2. Bank of America

Bank of America (NYSE: BAC) is another classic value stock thanks to its massive scale, defensive nature, and a history of reliable shareholder returns. The bank has a wide moat driven by cost advantages from its client base of 70 million consumers and small businesses, and high switching costs for customers who use its integrated digital and financial platforms. As the second-largest U.S. bank, Bank of America acts as a foundational institution that provides stability to its customers and investors even during periods of broader market volatility.

The company has consistently paid a dividend for decades, and has consistently increased its dividend for 12 years in a row and counting. The stock currently yields about 2% based on current share prices. Its trailing-five-year return, including dividends, is in the ballpark of 120%.

Bank of America operates a highly diversified growth model managed through four primary segments. Consumer Banking is the largest segment, where it serves individuals and small businesses with deposits, credit cards, and mortgages. Its Global Wealth & Investment Management business manages trillions in client assets. The Global Banking division provides lending, advisory, and investment banking services to corporations and institutions, and its Global Markets segment focuses on institutional sales and trading across various asset classes.

Bank of America had a fantastic quarter in Q3. Its total revenue of $28.1 billion rose 11% year over year, while net income totaled $8.5 billion, a 23% jump from the year-ago period. Its net interest income of $15.2 billion was up 9%. Investment banking fees surpassed $2 billion, a whopping 43% hike from one year ago.

The provision for credit losses decreased by approximately 13% from the prior year, a strong indication of improving asset quality. And, Bank of America returned $7.4 billion to shareholders through dividends and share repurchases during the quarter. Long-term investors who want to invest in the banking sector and benefit from a solid dividend on top of that might want to take a second look at this tried-and-true value play.

Bank of America is an advertising partner of Motley Fool Money. Rachel Warren has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.