Buffet's Favorite Stocks: The Shares Warren Buffet Indicates He'd Maintain Indefinitely
Warren Buffett, often known for his "buy and hold forever" philosophy, doesn't always stick to this in practice. His famous quote about investing in "outstanding businesses with outstanding management" for eternity might make it seem like he does, but a closer look at Berkshire Hathaway's portfolio reveals some changes over the years.
In his 2023 shareholder letter, Buffett praised giants like Coca-Cola and American Express, stating that they're the kind of businesses worth holding onto forever. Berkshire has held onto Coca-Cola for longer than any other stock, making it the conglomerate's fourth-largest holding. Similarly, American Express, despite no recent purchases, is Berkshire's second-biggest position with a $46 billion value.
Buffett expanded his forever stocks list in 2024, naming Occidental Petroleum as one he'd hold indefinitely. He likes their vast U.S. oil and gas holdings, leadership in carbon-capture technology, and their CEO, Vicki Hollub.
He also highlighted five Japanese trading houses – Itochu, Marubeni, Mitsubishi, Mitsui, and Sumitomo – that are small positions but ooze shareholder-friendliness and diversity like Berkshire itself.
And Apple, Berkshire's largest holding by far, is a solid candidate for the forever list. Buffett praised it as "an even better business than Coca-Cola" in a shareholder meeting, implying it's here to stay in Berkshire's portfolio.
Interestingly, Berkshire Hathaway itself is not named among the stocks Buffet would hold indefinitely. However, considering its status as his primary investment, it's clear where his loyalty lies, even if it doesn't need to be explicitly stated.
In the realm of finance, Buffett's investment strategy often involves putting money into businesses with outstanding management, such as Coca-Cola and American Express, which he sees as worthy of long-term investments. Furthermore, when discussing Apple in a shareholder meeting, Buffett referred to it as an "even better business than Coca-Cola," indicating his commitment to investing money in companies he believes will perform well over an extended period.
