Warren Buffett, the CEO of Berkshire Hathaway, reiterated his investment philosophy in his 2023 and 2024 shareholder letters, emphasizing his preference to hold stocks indefinitely if they represent “outstanding businesses with outstanding management.” Here are the stocks Buffett has identified as candidates for long-term ownership.
Coca-Cola and American Express lead the list
Berkshire Hathaway has held shares of The Coca-Cola Company (KO) longer than any other stock, making it the conglomerate’s fourth-largest holding. Buffett praised Coca-Cola in his 2023 letter, stating, “When you find a truly wonderful business, stick with it.” This sentiment continued in his 2024 letter, where he mentioned the beverage giant among stocks he expected to maintain indefinitely.
Similarly, Buffett expressed strong support for American Express (AXP), which ranks as Berkshire’s second-largest position, valued at nearly $46 billion, despite his last purchase being years prior. He noted the initial investment cost was only $1.3 billion, further reinforcing his belief in its long-term potential.
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Expanding the portfolio
Buffett added Occidental Petroleum (OXY) as a stock he intends to hold practically forever. After acquiring shares aggressively, Occidental is now Berkshire’s sixth-largest holding. Buffett highlighted the company’s significant oil and gas holdings in the U.S. and its leadership in carbon-capture initiatives, praising CEO Vicki Hollub’s management.
Additionally, Buffett has invested in five Japanese sogo shosha (trading houses) since 2020, including Itochu (ITOCF), Marubeni (MARUY), Mitsubishi (MSBHF), Mitsui (MITSY), and Sumitomo (SSUM.Y). Although these positions are not large, Buffett appreciates their “shareholder-friendly policies” and diversified business models similar to Berkshire’s.
Apple (AAPL) was notably absent from Buffett’s list in the 2024 letter, but he stated during Berkshire’s annual shareholder meeting that the company is “an even better business” than Coca-Cola. Buffett affirmed that Apple would remain part of Berkshire’s portfolio alongside American Express and Coca-Cola “unless something really extraordinary happens.” Despite reducing Berkshire’s stake in Apple last year, it still comprises 24.6% of the conglomerate’s equity portfolio.
Disclaimer: The content of this article is for informational purposes only and should not be construed as investment advice. We do not endorse any specific investment strategies or make recommendations regarding the purchase or sale of any securities.
Featured image credit: Kerem Gülen/Midjourney
