I owned Brown-Forman for 25 years and enjoyed a more than tipsy 1,000% total return on the stock over that time. Brown-Forman is a dividend aristocrat and has paid dividends for 81 straight years and increased its dividend for 41 consecutive years. I happened to purchase the stock on March 10, 2000, the same day I added to my Berkshire position and bought Fastenal, Genuine Parts and Johnson & Johnson, all of which I still own. In hindsight, that date turned out to be the peak of Nasdaq during the dot-com mania with most “old economy” stocks in the bargain bin.

Like Berkshire, Brown-Forman has A and B shares but the family controls all the voting rights, which never bothered me, as I like family-run businesses. Over the years, Brown-Forman has done many acquisitions and divestitures. I was disappointed when they sold Lennox back in 2005, as shareholders received a free Lennox Christmas ornament each year which was a nice perk. My husband always enjoyed our visits to Brown-Forman’s Woodford Reserve distillery in Kentucky, as he is a bourbon drinker and still collects their special edition bottles put out each year for the Kentucky Derby.

However, we never made a trip to Lynchburg, Tennessee to tour Jack Daniel’s distillery and see the “infamous” safe that Jack Daniel supposedly kicked in frustration over forgetting the combination, severely injuring his toe and leading to blood poisoning and ultimately his death according to company folklore.

I recently and somewhat reluctantly sold my long-held position in Brown-Forman as this will likely be the third year in a row that the company will “grow backwards” with both sales and earnings declining. The company’s return on shareholders’ equity has also been steadily declining for several years from about 34% five years ago to an estimated 18% this year, which is a hint that its moat (brands) may be eroding as fewer young people drink its spirits.

For some reason, American whiskey is always the target of tariffs, and this time is no different. However, this is the first time that Canada pulled all Jack Daniel’s bottles completely off the shelf in protest of U.S. policies. Brown-Forman has undergone several significant management and organizational changes in 2024 and 2025 as part of a broader strategic initiative to streamline operations and position the company for future growth. I wish them well! Cheers!