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Berkshire's 'Forever' Stocks: A Look Inside

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  Published in Stocks and Investing on Wednesday, March 4th 2026 at 16:45 GMT by The Motley Fool
      Locale: UNITED STATES

The Bedrock of Berkshire: The Original Eight 'Forever' Stocks

1. Apple (AAPL): The story of Berkshire's Apple investment is a testament to Buffett's willingness to adapt. Initially skeptical of technology companies, Buffett reversed course, recognizing Apple's unparalleled brand loyalty, innovative ecosystem, and powerful financial performance. Apple now represents a significant portion of Berkshire's portfolio.

2. Coca-Cola (KO): A cornerstone of Buffett's early success, Coca-Cola continues to be a staple holding. Its globally recognized brand, ubiquitous distribution network, and consistent demand provide a classic "moat" - a sustainable competitive advantage that protects it from rivals.

3. American Express (AXP): Buffett admires American Express's unique closed-loop payment system, which gives it greater control over its operations and allows it to cultivate strong relationships with affluent cardholders. This model creates a powerful network effect and reinforces customer loyalty.

4. Bank of America (BAC): Berkshire's substantial investment in Bank of America demonstrates Buffett's continued faith in the financial sector. He believes Bank of America is a well-managed bank with a strong balance sheet and the potential for long-term growth.

5. Kraft Heinz (KHC): While facing some challenges in recent years, Kraft Heinz remains a value-oriented holding, providing stable dividends and benefiting from established brand recognition in the consumer staples sector. It reflects Buffett's preference for companies with consistent cash flow.

6. Moody's (MCO): Moody's, a leading credit rating agency, benefits from a largely recurring revenue stream and a dominant position in its industry. The essential nature of credit ratings, especially in a complex financial world, provides a degree of resilience.

7. See's Candies: This privately held confectionery business exemplifies Buffett's preference for companies with strong pricing power and a loyal customer base. See's operates on a simple, effective model, generating consistent profits and reinforcing the importance of brand equity.

8. Geico: Another wholly-owned subsidiary, Geico's success is built on a low-cost structure, efficient direct-to-consumer sales model, and a commitment to providing affordable insurance. It has disrupted the insurance industry and continues to gain market share.

New Directions: Celanese and Citigroup - A Shift in Strategy?

In recent disclosures, Berkshire Hathaway revealed new positions in Celanese (CE), a global chemical and specialty materials company, and Citigroup (C), a major financial institution. These investments are noteworthy because they deviate, to some extent, from Buffett's traditional focus. Celanese operates in the cyclical industrial sector, meaning its performance is more susceptible to economic fluctuations than the consumer staples and brand-focused companies typically favored by Buffett. This suggests a willingness to consider opportunities in sectors that might present greater short-term volatility but also offer substantial long-term value.

The investment in Citigroup is even more intriguing. While Buffett has historically invested in banks, Citigroup has faced challenges in recent years and carries a higher risk profile than Bank of America. This could signal a belief that Citigroup is undervalued and has the potential for a turnaround, or it could indicate a broader acceptance of riskier investments in a favorable market environment. Some analysts suggest it's a pragmatic move taking advantage of temporary market conditions.

The Enduring Principles

Despite these new additions, the core principles underpinning Buffett's investment strategy remain unchanged. He continues to prioritize companies with strong brands, durable competitive advantages, consistent profitability, and capable management teams. These 'forever' holdings, and now even the newer additions, are chosen with the goal of weathering economic storms and generating sustainable value over the long haul. While diversification is part of a sound portfolio, Buffett's focus remains on quality over quantity, seeking out exceptional businesses rather than simply spreading investments across a wide range of industries. The evolution of his portfolio, however, shows a willingness to adapt and potentially capitalize on emerging opportunities, even if they stray slightly from his established comfort zone.