3 Warren Buffett Stocks to Hold Forever

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3 Warren Buffett Stocks to Hold Forever


If you’re looking for the best stocks to buy and hold forever, borrowing a pick or two from Warren Buffett is never a bad idea. He’s not called the Oracle of Omaha for nothing, after all. There’s a reason his Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) has been able to outperform the S&P 500 (SNPINDEX: ^GSPC) over the years.

Here’s a rundown of three of your best Warren Buffett bets right now, while they’re arguably undervalued.

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The Coca-Cola Company (NYSE: KO) is the world’s biggest beverage name, including brands like Gold Peak tea, Minute Maid juices, Dasani water, and a slew of others in addition to its namesake cola.

It does about $46 billion worth of business every year right now, but regularly raises its top and bottom lines. Ditto for its dividend, which has been upped every year for the past 62 years. This reliable income is a key reason Buffett has stuck with this cash cow since first stepping into it in 1988.

And don’t look for this streak to end anytime soon, if ever. Unlike rival PepsiCo, Coca-Cola doesn’t bottle the bulk of its products. Most of its revenue comes from the sale of branded concentrate to franchised bottlers, which in turn handle the production and distribution that get its products on store shelves.

Although this arrangement means less revenue relative to the amount of its beverages consumers are drinking, it’s a higher-margin model since the bottlers shoulder most of the cost-based risk. Higher profit margins, in turn, mean more per-share earnings that support continued dividend payments.

Berkshire Hathaway’s 400 million shares of Coca-Cola are worth nearly $26 billion, by the way — the conglomerate’s fourth-biggest holding. That in and of itself is a hint worth taking.

So, what’s Berkshire Hathaway’s single-biggest holding? Buffett — or at least one of his lieutenants — has been shedding its stake in Apple (NASDAQ: AAPL) for some time now. However, its remaining 300 million shares (worth $69 billion) leave Apple as Bearkshire’s top investment. Again, take the hint.

When Berkshire began buying Apple in 2016, it caught people a little off-guard. Buffett has generally not been a fan of technology stocks, explaining that it’s difficult to figure out what they’re worth simply because their technologies can be difficult to understand; they may or may not keep competitors at bay.



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