Warren Buffett Reveals Berkshire Hathaway’s Forever Stocks (And Apple Didn’t Make the List)
Warren Buffett, the renowned investor, has a reputation for being a buy-and-hold investor. He once famously said, “When we own portions of outstanding businesses with outstanding managements, our favorite holding period is forever.”
However, not every stock Buffett buys is held indefinitely. Berkshire Hathaway’s portfolio experiences a fair amount of turnover. Nevertheless, Buffett has identified a select group of stocks that he believes Berkshire Hathaway will hold forever. Surprisingly, Apple isn’t one of them.
Two Long-Term Holdings
In Buffett’s letters to Berkshire Hathaway shareholders, he discussed two long-term holdings: American Express (NYSE: AXP) and The Coca-Cola Company (NYSE: KO). These two stocks have been incredibly successful for Berkshire Hathaway. Buffett emphasized that when you find a truly wonderful business, it’s important to stick with it.
Another Stock Buffett Likes
Buffett recently added a new stock to Berkshire Hathaway’s forever list: Occidental Petroleum (NYSE: OXY). Berkshire currently owns a 27.8% stake in the company, making it one of the largest positions in its portfolio. While Buffett said Berkshire has no intention of acquiring Occidental outright, he expressed satisfaction with their ownership and the potential to increase their position.
Buffett particularly likes Occidental because of its extensive oil and gas operations in the US and its leadership in carbon capture technology, which aligns with the country’s interests.
Five Stocks as a Group
Buffett also revealed five Japanese trading houses that he believes Berkshire Hathaway will hold forever. These companies include Itochu (OTC: ITOCF, OTC: ITOCY), Marubeni (OTC: MARUY), Mitsui (OTC: MITSF, OTC: MITSY), Mitsubishi (OTC: MSBHF), and Sumitomo (OTC: SSUM.F, OTC: SSUM.Y). Berkshire currently holds approximately 9% stakes in each of these firms. Buffett appreciates their diversified operations and shareholder-friendly policies.
What About Apple?
Despite not making the forever list, Apple remains Berkshire Hathaway’s largest holding. In the fourth quarter of 2023, Berkshire slightly reduced its position in the tech giant. However, this doesn’t mean Buffett doesn’t view Apple as a long-term investment. It’s essential to remember that Buffett focuses on specific holdings in his letters and may omit mentioning other stocks.
During Berkshire’s shareholder meeting in May 2023, Buffett stated that Apple is a better business than any they own. Therefore, it’s likely that Apple, along with several other stocks, will be held by Berkshire Hathaway for decades to come.
If you want to know more about Warren Buffett’s forever stocks and Berkshire Hathaway’s investment strategy, visit Business Today.
American Express is an advertising partner of The Ascent, a Motley Fool company. Keith Speights has positions in Apple and Berkshire Hathaway. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway. The Motley Fool recommends Occidental Petroleum. The Motley Fool has a disclosure policy.