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. After all, they don’t call him the Oracle of Omaha for nothing. There’s a reason why your Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) has been able to overcome S&P 500 (SNPINDEX: ^GSPC) over the years.

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

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

It currently does business worth about $46 billion each year, but regularly increases its results. The same goes for its dividend, which has increased every year for the last 62 years. This reliable income is a key reason why Buffett has stuck with this income stream since he first got into it in 1988.

And don’t expect this streak to end anytime soon, if it ever ends. Unlike the rival PepsiCoCoca-Cola does not bottle most of its products. Most of its revenue comes from selling branded concentrate to franchise bottlers, who in turn handle the production and distribution to get its products onto store shelves.

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

By the way, Berkshire Hathaway’s 400 million Coca-Cola shares are worth nearly $26 billion—the conglomerate’s fourth-largest holding. That in itself is a lead worth pursuing.

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

When Berkshire started buying Apple in 2016, it caught people a little off guard. In general, Buffett has not been a fan of technology stocks, explaining that it is difficult to determine their value simply because their technologies can be difficult to understand; They may or may not keep competitors at bay.

By Admin

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