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Warren Buffett's Forever-Hold Picks: Coca-Cola, American Express, Wells Fargo
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Published in Stocks and Investing on Thursday, December 18th 2025 at 10:40 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
3 Warren Buffett Stocks to Hold Forever – A 2025 Review
In a recent piece published on The Motley Fool (December 18, 2025), analysts dive into the timeless investment philosophy of Warren Buffett and highlight three names that the Berkshire Hathaway CEO has consistently championed as “hold‑for‑life” assets. While Buffett’s portfolio is a moving target, the companies that feature in the article—Coca‑Cola, American Express, and Wells Fargo—have stood the test of time as prime examples of what the “long‑term, hold‑forever” strategy really means.
Why Buffett’s “Forever” Picks Matter
The article begins by framing Buffett’s approach: buy quality, hold quality. Buffett famously says he would never want to sell a good company. He looks for businesses that have durable competitive advantages (or moats), strong cash‑flow generation, and reliable management teams. The “forever” label is not about being a passive, 20‑year investor; it’s about owning companies that can survive shifts in technology, regulation, and consumer tastes.
Key takeaways from the opening section:
- Moats: Brands that people can’t live without and that command premium pricing.
- Cash flow: Companies that consistently generate excess cash to pay dividends and buy back shares.
- Management: Leaders who are not just shareholders, but also the owners of the businesses they run.
With those criteria in mind, the article then lays out the three pick‑outs.
1. Coca‑Cola (KO)
Why it’s a “forever” stock
- Global brand equity: Coca‑Cola’s name is among the world’s most recognized. Its distribution network covers virtually every market, giving it a near‑unbreakable moat.
- Consistent cash flow: The company has a long history of steady earnings, robust free cash flow, and a resilient dividend that has increased year over year for more than 50 years.
- Low capital intensity: Coca‑Cola’s business model relies on brand and bottling partnerships rather than massive plant investment, preserving margins.
The article links to a Fool feature on Coca‑Cola’s dividend history, noting that the stock’s dividend yield hovers around 3 %, making it a solid choice for income seekers. Buffett has long owned roughly 3.6 % of Coca‑Cola’s shares—an investment he describes as “the most valuable thing in the world.”
2. American Express (AXP)
Why it’s a “forever” stock
- Premium cardholder experience: American Express isn’t just a payment processor; it’s a high‑end brand that offers travel rewards, concierge services, and exclusive cardholder events.
- Strong fee structure: The company earns a sizable portion of its revenue from merchant fees, which are protected by its strong brand loyalty.
- Resilient in economic cycles: Even during downturns, consumers still pay for travel and entertainment perks, giving AmEx a cushion against recessionary pressure.
A side‑by‑side comparison in the article shows American Express’s earnings per share growth versus the broader banking sector. Buffett’s stake—around 2.5 % of the company—has steadily grown over the past decade, underscoring his confidence in the firm’s moat.
3. Wells Fargo (WFC)
Why it’s a “forever” stock
- Massive deposit base: Wells Fargo is one of the nation’s largest banks by deposits, giving it a deep liquidity cushion and an expansive distribution network of branches and ATMs.
- Diverse product mix: From mortgages and auto loans to credit cards and wealth‑management services, the bank offers a full suite of financial products.
- Dividend track record: Despite a high-profile scandal in 2020, the bank has maintained a dividend yield of roughly 2.5 % and has a history of dividend increases.
The article does not shy away from the risk narrative. Buffett’s perspective, quoted in the piece, frames the bank’s regulatory challenges as a manageable, short‑term hiccup within a fundamentally sound business. He remains bullish on the long‑term value, citing the bank’s scale and capital adequacy.
Buffett’s Broader Investment Philosophy
Beyond the three companies, the article delves into how Buffett’s long‑term strategy differs from typical market‑timing tactics:
- Time‑value of money: The compounding effect of holding a high‑quality company for 20–30 years can generate outsized returns.
- Patience during volatility: Buffett’s focus on intrinsic value keeps him disciplined during market sell‑offs.
- Reinvestment focus: The dividends and share buybacks that these three companies provide are often reinvested by the company itself, fueling further growth.
The article points readers toward The Motley Fool’s “Why Buffett’s 25 Favorite Stocks” guide, which expands on the criteria used for selecting a Buffett‑type investment.
Bottom Line: Should You Add These to Your Portfolio?
The piece concludes that while no investment is risk‑free, the combination of brand strength, cash‑flow consistency, and strong management makes Coca‑Cola, American Express, and Wells Fargo excellent long‑term holdings for investors who can stomach the occasional dip. Buffett’s own track record of holding these stocks for decades, reaping dividends, and avoiding the pitfalls of frequent trading stands as a testament to the “forever” philosophy.
In a rapidly changing world of fintech, shifting consumer tastes, and evolving regulatory landscapes, the article encourages investors to stay disciplined, focus on the underlying fundamentals, and remember that “holding forever” isn’t about staying idle—it’s about trusting the long‑term resilience of these iconic businesses.
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Read the Full The Motley Fool Article at:
[ https://www.fool.com/investing/2025/12/18/3-warren-buffett-stocks-to-hold-forever/ ]
