If any investor has stood the test of time, it’s Warren Buffett, and with good reason. For years, the “Oracle of Omaha” has had a rock star-like presence in the investing world, and his annual Berkshire Hathaway shareholders meeting draws thousands of loyal fans who are investors.
Known for his long buy-and-hold strategies and massive portfolio of public and private holdings, Buffett remains one of the world’s preeminent investors. Long-time investors and Buffett mavens are familiar with his quote, “His favorite holding for an S&P 500 stock is forever.”
The question for many is, at age 93 (Mr. Buffett will be 94 on August 30), you don’t need an actuarial table to figure out he won’t be around much longer. His longtime partner, Charlie Munger, died recently at 99. Greg Abel, CEO of Berkshire Hathaway Energy and vice-chairman of non-insurance operations of Berkshire Hathaway since January 2018, who will be 64 in June, has been tapped as Mr. Buffet’s successor. Many investors may wonder what stocks will stay and what will go.
We screened the Berkshire Hathaway portfolio for the five stocks that were held among the longest, as they will likely remain the portfolio’s cornerstones. All are rated Buy at major Wall Street firms.
The Coca-Cola Company
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This company remains a top Warren Buffet holding as he owns a massive 400 million shares, which he started buying in 1988. Mr Buffett owns 9.3% of the float, and the stock makes up 6.5% of the portfolio. The Coca-Cola Company (NYSE: KO) is the world’s largest beverage company, offering consumers more than 500 sparkling and still brands.
Led by Coca-Cola, one of the world’s most valuable and recognizable brands, the Company’s portfolio features 20 billion-dollar brands, including:
- Diet Coke
- Fanta
- Sprite
- Coca-Cola Zero
- Vitaminwater
- Powerade
- Minute Maid
- Simply
- Georgia
- Del Valle
Globally, they are the No. 1 provider of sparkling beverages, ready-to-drink coffees, and juice drinks.
Through the world’s most extensive beverage distribution system, consumers in more than 200 countries enjoy the company’s beverages at a rate of more than 1.9 billion servings a day. It’s also important to remember that the company owns almost 20% % of Monster Beverage (NASDAQ: MNST), which continues to deliver big numbers.
Investors are paid a very dependable 3.21% dividend.
American Express
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This stock has been strong recently and pays a 1.24% dividend. Warren Buffet has owned the stock since 1991. American Express Company (NYSE: AXP) provides charge and credit payment card products and travel-related services worldwide.
The company operates through three segments:
- Global Consumer Services Group
- Global Commercial Services
- Global Merchant and Network Services.
Its products and services include:
- Payment and financing products
- Network services
- Accounts payable expense management products and services
- Travel and lifestyle services.
The company’s products and services also comprise:
- Merchant acquisition and processing
- Servicing and settlement
- Point-of-sale marketing
- Information products and services for merchants
- Fraud prevention services and the design and operation of customer loyalty programs
Berkshire Hathaway owns 151,610,700 shares, 20.9 % of American Express’s float, and 9.3% of the portfolio.
Procter & Gamble
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Procter & Gamble (NYSE: PG) is one of the world’s largest consumer products companies. It offers substantial dividends and has very recognizable products. Mr. Buffett has been buying shares since 2005.
Proctor and Gamble operate under five segments:
- Beauty,
- Grooming
- Health Care
- Fabric & Home Care
- Baby & Family Care
Brands include:
- Pampers
- Tide
- Bounty
- Charmin
- Gillette
- Oral B
- Crest
- Olay
- Pantene
- Head & Shoulders
- Ariel
- Gain
- Always
- Tampax
- Downy
- Dawn
P&G sells its products through mass merchandisers, e-commerce, grocery stores, membership club stores, drug stores, department stores, distributors, wholesalers, baby stores, specialty beauty stores, high-frequency stores, and pharmacies.
The company has been innovative in its product development process and uses that to help ensure future growth and cash flow. This should provide investors with years of steady growth and dividends.
Shareholders are paid a very dependable 2.35% dividend.
Moody’s Corporation
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While not one of Warren Buffett’s more well-known stocks, he first bought shares in 2000, and the stock pays a slight 0.88% dividend. Moody’s Corporation (NYSE: MCO) is an integrated risk assessment firm worldwide.
It operates in two segments,
- Moody’s Analytics
- Moody’s Investors Services.
The Moody’s Analytics segment develops a range of products and services that support the risk management activities of institutional participants in financial markets.
It also offers:
- Credit Research
- Credit models and analytics
- Economics data and models
- Structured finance solutions
- Data sets on companies and securities
- SaaS solutions supporting banking and insurance
The Moody’s Investors Service segment publishes credit ratings and provides assessment services on various debt obligations, programs and facilities, and entities that issue such obligations, such as corporate, financial institution, governmental, and structured finance securities.
BYD Company
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While way off most investors’ radar screens, Warren Buffet first bought shares of the company in 2008, and remarkably, a then-unknown start-up has become one of the world’s largest automakers, after he purchased a 10% share of the company for a mere $230 million. The stock pays a slight 0.60% dividend. BYD Company Limited (OTC: BYDDF), together with its subsidiaries, engages in the research, development, manufacture, and sale of automobiles and related products in the People’s Republic of China and internationally.
The company operates through three segments:
- Secondary Rechargeable Batteries and Photovoltaic
- Mobile Phone Components, Assembly
- Automobiles, Automobile-Related Products
The Secondary Rechargeable Batteries and Photovoltaic segment manufactures and sells lithium-ion and nickel batteries, photovoltaic products, and iron batteries primarily for mobile phones, power tools, photovoltaic and energy storage products, and electric vehicles.
The Mobile Phone Components, Assembly, and Other Products segment manufactures and sells casings and other mobile phone and electronic product components, provides complete machine assembly services, and offers epidemic prevention materials.
The Automobiles, Automobile-Related Products, and Other Products segment manufactures and sells automobiles, including hybrid, battery-electric buses, taxis, sanitation, and passenger vehicles; automobile-related molds and parts; automobile leasing and after-sales services; and rail transit and related businesses.
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