N※N

The Forever Portfolio 2026 Refresh: 3 Stocks to Buy and 3 to Sell

  //stocks-investing.news-articles.net/content/202 .. -2026-refresh-3-stocks-to-buy-and-3-to-sell.html
  Published in Stocks and Investing on Monday, December 15th 2025 at 4:26 GMT by The Motley Fool

• 🞛 This publication is a summary or evaluation of another publication
• 🞛 This publication contains editorial commentary or bias from the source
• 🞛 This publication contains potentially derogatory content such as foul language or violent themes

The Forever Portfolio: 3 Stocks to Buy in 2026 and 3 to Sell – A 2025 Forecast from The Fool

When you hear the phrase “Forever Portfolio,” the first thing that often comes to mind is a low‑maintenance, long‑term investment plan that’s designed to keep your money growing for life. The Fool’s most recent article, published on December 15 2025, dives into the next step in that strategy: a quarterly “refresh” for 2026. In it, the authors explain why the current mix of quality stocks still needs tweaks and lay out a clear, three‑for‑three buy‑and‑sell list that should keep investors in the driver’s seat of their portfolios for the next decade and beyond.

1. What Is a Forever Portfolio?

The article opens with a quick recap of the Forever Portfolio concept, linking back to the classic Fool guide that first popularized it in 2015. The underlying premise is simple: invest in a handful of high‑quality, high‑growth companies that generate cash and are defensible over the long haul. The portfolio should be diversified enough that it is not overly exposed to a single industry, yet focused enough that you can truly “own” the winners.

The Fool stresses that a Forever Portfolio is not a “set‑and‑forget” investment vehicle; rather, it’s a disciplined framework that requires regular review. The article cites the 2024 report on market volatility and highlights that even the best of the best can become overvalued or fall out of favor when macro‑economic tides shift.

2. The Six Criteria Behind the Recommendations

Before diving into the specific stocks, the authors outline the six criteria that guide any buy or sell decision in the 2026 cycle:

1. Growth Prospects – companies that can sustain 20‑plus percent revenue growth over the next 5‑10 years.
2. Cash Flow Generation – free cash flow per share that remains strong relative to peers.
3. Balance‑Sheet Strength – low leverage and plenty of cash on hand.
4. Valuation – a price-to‑earnings (P/E) multiple that is reasonable for its growth profile.
5. Competitive Moat – a durable advantage (e.g., brand, network, IP).
6. Sector Momentum – a sector that is poised for continued expansion, such as AI, cloud, or electric vehicles.

The article links to an internal Fool post titled “What Is a Moat?” which explains how to spot companies that have a defensible edge. It also references the 2024 “Market Trends” article that tracks how AI and cloud computing are reshaping the industry landscape.

3. 3 Stocks to Buy in 2026

a) Microsoft Corp. (MSFT)

Rationale: The article underscores Microsoft’s solid balance sheet and its leadership in cloud services via Azure. With the rollout of its next‑generation AI offerings and an expanding partner ecosystem, Microsoft is positioned to maintain its growth rate. The authors note that the stock’s valuation has tightened in the past year but still sits below the 10‑year average for comparable growth tech.

b) Alphabet Inc. (GOOGL)

Rationale: Alphabet remains a juggernaut in search, advertising, and most importantly, AI. The “Google AI” initiative, combined with its vast data infrastructure, gives it a unique moat. The article cites Alphabet’s strong free‑cash‑flow generation and low debt levels, making it a safe bet for the long haul.

c) NVIDIA Corp. (NVDA)

Rationale: NVIDIA is the undisputed leader in GPUs and is expanding into AI and data‑center solutions. The article highlights the “foundational role” the company plays in the AI supply chain and notes that its earnings are expected to climb even faster than its peers. Valuation concerns are addressed by pointing out that NVIDIA’s price-to‑earnings ratio is currently under 25x—a sensible number for a tech company expected to double its sales in the next few years.

4. 3 Stocks to Sell in 2026

a) Berkshire Hathaway Inc. (BRK.A / BRK.B)

Rationale: While Berkshire’s diversified holdings are a hallmark of its success, the article argues that the conglomerate’s valuation has ballooned, especially after the 2024 “value‑momentum” rally. The recommendation to sell focuses on the opportunity cost of holding a relatively high P/E ratio when growth prospects are moderate.

b) Johnson & Johnson (JNJ)

Rationale: The healthcare stalwart’s growth has slowed, and its free‑cash‑flow generation has plateaued. The authors advise selling because the company’s dividend is less compelling when compared to its peers with more robust earnings growth.

c) Coca‑Cola Co. (KO)

Rationale: With global consumption trends shifting away from sugary drinks, Coca‑Cola’s long‑term growth outlook appears limited. The article points out that the company’s valuation has become stretched and that investors can reallocate capital to more dynamic sectors.

5. How the Refresh Affects the Overall Portfolio

The article contains a handy table that shows the new allocations after adding the three buy positions and removing the three sell positions. Microsoft, Alphabet, and NVIDIA each receive an additional 5–6% allocation, bringing the total to a roughly 20‑stock lineup that still covers technology, consumer discretionary, healthcare, and financials. The authors stress that the portfolio remains “high‑quality” by maintaining a “quality‑first” ethos and a diversified sector mix.

The authors also caution that a refresh should not be a one‑off event. They recommend a semi‑annual review, especially if macro‑economic data changes drastically (e.g., a sudden interest‑rate hike or a global recession). The article links to a forthcoming piece on “Macro‑Trends 2026” that readers can use as a reference.

6. Practical Take‑aways for Investors

1. Stay Focused on Quality – Even as you add or drop holdings, keep the focus on companies with strong fundamentals.
2. Watch the Valuation Gap – Use the six criteria as a filter to keep your portfolio within a “growth‑yet‑affordable” zone.
3. Rebalance Regularly – A small, disciplined rebalancing strategy outperforms a frantic “stop‑loss” mentality.
4. Keep the Momentum – The recommended buys are tied to sectors that are likely to expand significantly (AI, cloud, semiconductor).
5. Avoid “Cool‑Off” Sectors – Selling stocks with limited upside protects your portfolio from lagging sectors.

The article closes with a call to action: investors should check their own Forever Portfolio against the new list and adjust within the next quarter to capture the upside and protect downside risk. The authors remind readers that the goal isn’t to time the market but to remain anchored in the most promising companies for the long run.

7. Bottom Line

In a nutshell, the December 2025 Fool article provides a clear, actionable plan for investors who already own a Forever Portfolio. By adding Microsoft, Alphabet, and NVIDIA while shedding Berkshire Hathaway, Johnson & Johnson, and Coca‑Cola, the portfolio is better positioned to ride the wave of AI, cloud computing, and semiconductor innovation. The authors back each recommendation with a blend of quantitative metrics and qualitative insight, making it a useful roadmap for anyone looking to tweak their long‑term holdings for the coming decade.