Finding a great stock to buy at any given time isn't too tough to do. Finding a name you can confidently buy and hold forever, however, is a different story. The company in question must have staying power. That means it must be in a business that's not only perpetually in demand, but the organization itself must be willing -- and able -- to evolve and adapt as needed. That's no small order.
Such companies are out there, though, and it comes as no surprise that Warren Buffett's Berkshire Hathaway has been sitting on several of them for a long, long time. And, given that Buffett's favorite holding period is "forever," there's a good chance they'll remain in Berkshire's portfolio.
Here's a closer look at three of these best bets for you right now.
1. Coca-Cola
Of course, you know The Coca-Cola Company (NYSE: KO) . After all, it's the biggest and best-known beverage company in the world.
It's much more than its namesake cola, though. Coca-Cola also owns Gold Peak tea, Minute Maid juices, Powerade sports drinks, Dasani water, and more. This diverse lineup of products means the beverage behemoth always has something to sell to someone regardless of ever-evolving consumer preferences. The company just needs to market these products appropriately, something The Coca-Cola Company has always done well, and one of the chief reasons to own a stake in the organization.
Perhaps the top reason Warren Buffett has been such a long-term fan of Coca-Cola, however, is a more practical and tangible one for all investors. That's its dividend. Not only has the company paid one like clockwork every quarter for decades, but it's raised its annual dividend payout every year for the past 62 years. There are only eight other companies in the entire world that can boast a better dividend-growth track record. It also seems unlikely this drinks giant is going to lose its place in the lineup anytime soon, if ever. Its products and brand names are simply too woven into the fabric of our culture.
Coke's forward-looking dividend yield stands at 2.8%, by the way. You can find stocks with better yields, but you won't find many with this sort of dividend pedigree and this low degree of risk.
2. Bank of America
Anyone reading this probably already knows Berkshire Hathaway has been selling off pieces of its Bank of America (NYSE: BAC) position in earnest over the course of the past few weeks. As of the most recent tally, it's sold nearly $4 billion worth of the nation's second-biggest bank, demoting BofA from being the conglomerate's second-biggest position to its third-biggest. That's not insignificant.
The headlines may be making more out of the move than is merited, however. It's possible Buffett and his lieutenants are simply rebalancing Berkshire's holdings after they became grossly top-heavy. Thanks to the bank stock's solid gains logged since late last year, just a few weeks back, Bank of America accounted for roughly 15% of Berkshire's portfolio. In this same risk-reduction vein, Berkshire Hathaway's been paring back its stake in Apple (NASDAQ: AAPL) , which at one point earlier this year made up over one-third of Berkshire's holdings in publicly traded companies.
It's also possible Warren Buffett foresees higher capital gains tax rates ahead, and figures now is the right time to take at least some profits off the table.
Sure, there's the economics thing, too. Lingering high inflation is starting to take a clear toll. The Philadelphia brand of the U.S. Federal Reserve reports that as of the middle of this year, loan delinquencies in the United States hit a 12-decade high, and Bank of America itself reported the same for its own loan portfolio with its second-quarter results. Its provision for credit losses eclipsed $1.5 billion in Q2, for instance, up from $1.3 billion in Q1 and higher than the year-ago comparison of $1.1 billion. Assuming the economy doesn't get much better very soon, these metrics could worsen before improving. That's how things slowly unfurled in the wake of 2007's subprime mortgage meltdown, anyway.
The thing is, for all the rhetoric surrounding Buffett's recent sale of some of this stock, Berkshire is still holding roughly $37 billion worth of Bank of America. That's not exactly a sign that he lacks confidence in the bank's long-term future.
3. Apple
Last, but not least, add the aforementioned Apple to your list of Warren Buffett stocks to buy and hold forever.
OK, it's admittedly such a commonly suggested pick that it's almost become cliché. Berkshire Hathaway has also been scaling back its position in the consumer-technology titan despite shares' ongoing rally into record-high territory, undermining the bullish argument.
Take a step back and look at the bigger picture, though. Even with Berkshire's recent pruning , Apple is still Berkshire Hathaway's single-biggest position, worth just under 29% of the conglomerate's stock portfolio. That speaks volumes.
You may want to step into this name sooner than later if you like the fact that Buffett still likes it. Apple's next major product unveiling event is scheduled for Sept. 9, during which the world will be introduced to the company's artificial intelligence-capable next-generation iPhone 16. This iteration of the popular smartphone should begin shipping well before the end of this year, likely reigniting the growth of Apple's otherwise stagnating iPhone sales (which still account for half of Apple's revenue , by the way). To this end, market research outfit IDC predicts that generative-AI-capable smartphone shipments will reach a tally of 234 million units this year, en route to over 900 million units in 2028, as the technology moves from being merely mainstream to the full-blown norm. Apple is sure to be in the thick of that growth.
Of course, with more iPhones being used even more actively, Apple stands to generate plenty more high-margin service-related revenue as well.
Bank of America is an advertising partner of The Ascent, a Motley Fool company. James Brumley has positions in Coca-Cola. The Motley Fool has positions in and recommends Apple, Bank of America, and Berkshire Hathaway. The Motley Fool has a disclosure policy .
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