Buffett’s successful approach to stock investing will continue to be a hot topic even in retirement.
Following Buffett’s lead, it’s a great idea to invest in stocks that are capable of performing well over the long term.
Three of Buffett’s favorite stocks are great forever picks.
10 stocks we like better than Berkshire Hathaway ›
It is the end of an era. At the end of 2025, the legendary Warren Buffett has officially stepped down from his long and successful tenure as CEO of Berkshire Hathaway(NYSE: BRK.A)(NYSE: BRK.B).
However, Buffett’s investment philosophy will endure for a long time, and a key part of his approach is to look for companies worth holding for the long term. Many of Buffett’s favorite stocks fit that profile. Here are three that investors should consider buying: Berkshire Hathaway itself, Apple(NASDAQ:AAPL)and Coca-cola(NYSE: KO).
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How do we know Buffett loves Berkshire Hathaway? In addition to having been a director of the company for decades, Buffett and his team have bought back billions worth of shares in the conglomerate in recent years. This sends a clear signal to investors. Buffett is still confident in Berkshire Hathaway’s long-term prospects, and investors should too. Even without its iconic leader in the CEO role, the company remains a vast and diversified business empire.
Berkshire Hathaway owns subsidiaries in various industries, including energy, railroads, insurance, and more. The result is that even when some companies are not performing well, others pick up the slack. Then there’s Berkshire Hathaway’s vast portfolio, which includes several dozen stocks, also diversified across many sectors and industries. We also have some brilliant minds picking stocks.
Berkshire Hathaway is the closest investors can get to buying an exchange-traded fund (ETF) that tracks the performance of a major index without having to buy one. An important factor in the company’s long-term prospects is that the next generation of leaders was chosen by Buffett and his former (and now deceased) business partner, Charlie Munger.
The philosophy that made Berkshire Hathaway extremely successful will live on within the company, implemented by leaders such as Greg Abel, the new CEO, and Ajit Jain, among others. These individuals have consistently proven their worth over the years and are ready to lead Berkshire Hathaway into the future. That’s why stock remains a great choice forever.
Apple has been Berkshire Hathaway’s main holding company for years, even though the conglomerate recently reduced its stake. Plus, Buffett once described it as the best business in the world. That’s high praise from the Oracle of Omaha.
However, some people do not share his optimism about Apple’s future. The company lags behind its tech giant peers in the artificial intelligence market. It also faces the threat of tariffs from the Trump administration. However, even with these challenges, Apple remains a top buy and hold option.
Here are three reasons. First of all, the iPhone is proving that it can still generate excellent sales. The latest version, the iPhone 17, has generated significant demand and helped improve Apple’s revenue growth, returning it to levels not seen in several years. This will continue, given the company’s forecasts for the next quarter.
This brings us to the second point: Apple has a large and growing installed base of devices. Given the company’s high switching costs and network effects within its app store, it has a strong moat that will allow it to retain the majority of its customers.
Third, Apple’s services segment is growing faster than the rest of the business. This high-margin unit should, in the long term, eventually boost Apple’s profits and margins. All of these factors together make a strong argument for holding onto Apple stock for the long term.
Coca-Cola has been in Berkshire Hathaway’s portfolio longer than any other stock: more than 35 years now. This shows Buffett’s confidence in the company. What makes stock such a good forever choice? Coca-Cola has a business that generates fairly consistent revenue and profits, even in difficult times.
One of the reasons it can do this is its popular brand, which consistently attracts customers and allows it to control shelf space in retail stores. Another important aspect of Coca-Cola’s strategy is its ability to quickly adapt to consumer demands, some of which are region-specific.
Coca-Cola operates in more than 200 countries and has managed to attract diverse tastes and preferences in different countries and cultures. That says a lot about the company.
Coca-Cola offers something else that Buffett loves: a fantastic dividend program. The beverage maker is part of the exclusive group of Dividend Kings, made up of corporations that have increased their payouts every consecutive year for at least 50 years. Coca-Cola’s streak currently stands at 63. The stock has a lot more to offer for income and long-term investors who, like Berkshire Hathaway, decide to stay the course.
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Prosper Junior Bakiny has positions at Berkshire Hathaway. The Motley Fool has positions and recommends Apple and Berkshire Hathaway. The Motley Fool has a disclosure policy.
Warren Buffett’s Legacy: 3 of His Favorite Stocks to Buy and Hold Forever was originally published by The Motley Fool
