Three Buffett Stocks to Keep Forever

Warren Buffett may be the most famous investor. Why? His decades of financial prowess have raised his net wealth to over $130 billion and made Berkshire Hathaway one of the world's most valuable firms. Investors have copied Buffett and Berkshire Hathaway's investments to emulate their success. This may not be best for all investors, but some Buffett stocks are worth staying onto.

1. Coke Berkshire Hathaway's fourth-largest stake is 400 million shares of Coca-Cola (NYSE: KO). It owns 6.6% of its portfolio and 9.3% of Coca-Cola.

Coca-Cola's dividend is its biggest draw. Company trailing-12-month dividends are roughly 3%, double the S&P 500's. Beyond its above-average dividend yield, Coca-Cola's annual dividend hikes are appealing. The company has grown over 59% in the past decade and raised its dividend for 62 years. Coca-Cola's shares (or any company) may fluctuate, but investors can count on the dividend.

While Coca-Cola is the world's largest non-alcoholic beverage company, its endurance comes from its refusal to settle. The corporation invests to adapt to consumer tastes. A recipe for long-term success.

2. Amazon Buffett initially hesitated to invest in Amazon (NASDAQ: AMZN), but now regrets it. Amazon's stock has experienced generational returns in the past decade, so this sorrow makes sense.

Amazon is known for e-commerce, but its Amazon Web Services (AWS) division is successful. E-commerce generates most of Amazon's income, but AWS generates the most profit. Amazon's fourth-quarter 2023 operating income was $13.2 billion, with AWS contributing $7.2 billion.

Amazon had 31% of the global cloud infrastructure service market in the fourth quarter of 2023, ahead of Microsoft Azure by 7%. Amazon's future growth will likely come from cloud services, but e-commerce will remain its mainstay.

Amazon has diversified well and into several industries. Given the recent AI surge, the company is well-positioned to become a tech staple as it enhances its competitive advantage.

3. P&G Procter & Gamble (NYSE: PG) owns famous household brands. P&G owns many notable brands, including Tide, Pampers, Tampax, and Old Spice. Like Coca-Cola, P&G's dividend is its key draw. With 67 consecutive dividend increases and 133 years of dividend payments, it's a Dividend King. Only four firms have an extended dividend increase streak.

A defensive stock poster child is P&G. Consumers often cut back on entertainment, technology, and travel during economic downturns. P&G's personal health, cleaning, and hygiene products are tougher to avoid and not recommended.

P&G has stable earnings, which Buffett appreciates. Its products sell regardless of economic or market situations, therefore investors favor defensive equities in weak economies or volatile markets. P&G's stock won't expand like growth stocks, but you can hold it long-term.

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