Warren Buffett has been known as the Oracle of Omaha. He knows an outstanding stock with a good value and picks it at the right time, and then he holds it forever. Buffett has held onto many of these companies as the market goes up and down making that portfolio go up 19% annually over the course of 57 years.
With those facts, you have to wonder which stocks we should pick up and hold forever like Buffett does. Many people will copy his portfolio and watch what he does, but he holds a ton of cash and is always looking for his next acquisition. Looking at some of his stocks, you could pick a couple that can keep them forever.
Here are three top stock picks from his portfolio that you could hold forever.
When you look at Coca-Cola, you see a brand that is worldwide. Coke has been around for many years, and as a Dividend King, it has increased its dividend year after year for over 50 years. If you are into dividends, then Coca-Cola could be the right stock to hold in your portfolio.
The current dividend is $1.84. That is about a 3.48% dividend payment from this Dividend King. That is almost in line with some of the best cash rates on the market. For those looking for passive income, this would be a prime candidate to add to your portfolio. Even when the market is up and down, people will continue buying Coke, and the dividend will continue.
With the fluctuations in the market, it is a great time to grab some Coca-Cola stock, as the price has come down recently. The price has declined 16% in the last six months, making this stock a steal.
If you are looking for a good Warren Buffett stock to hold forever, look no further than Coca-Cola.
Amazon became the leader in e-commerce over many of its competitors, and it continues to grow and diversify its income. Not only does Amazon deal with e-commerce, but it is also the largest cloud computing company in the world. These two industries have made Amazon soar this year.
Inflation and the possibility of a recession have brought about fears in the market recently, but Amazon has positioned itself to create more cash flow and a lasting product. One way they have done this is by shifting from a national distribution to more regional, which cuts down on transportation costs, saves money, and gets packages quicker to customers. It is a win-win for both customers and Amazon.
If you are looking for a company that has grown its stock value year after year, then Amazon could be that stock. They continue to innovate, create systems for better cash flow, and dominate the market.
Apple is another one of Warren Buffett's hold forever stock. Apple happens to be the largest holding in Buffett's portfolio. That means he believes in it so much that he keeps it.
Warren Buffett was not always on the tech bandwagon as many people were, but learning about the innovations and the business Apple was creating made him a believer.
Everyone knows about Apple, and it is hard to miss. You walk around, and people either have an iPhone in their hand or Air pods in their ears. Apple has created an ecosystem where people are drawn to the products created because they are simple for the everyday user and seamlessly connect to all products.
It is hard not to see a world with Apple products. Every year, a new iPhone appears on the market or the latest gadget, but through innovation and creative design, Apple continues to create new products that dominate markets. AirPods alone could be one of the world's largest sound companies with the yearly sales they make.
It is no wonder Warren Buffett holds them in his portfolio. So, if you are looking for a company that will be here for years to come, Apple could be that stock you could add to your portfolio. Apple also delivers a dividend if you are not a fan of growth stocks.
I’m Steve. I’m an English Teacher, traveler, and an avid outdoorsman. If you’d like to comment, ask a question, or simply say hi, leave me a message here, on Twitter (@thefrugalexpat1). Many of my posts have been written to help those in their journey to financial independence. I am on my journey, and as I learn more I hope to share more. And as always, thanks for reading The Frugal Expat.