5 Best Forever Stocks to Buy Now

In this piece, we will take a look at the 5 best forever stocks to buy now. For more stocks on this list, head on over to 13 Best Forever Stocks to Buy Now.

5. American Express Company (NYSE:AXP)

Number of Hedge Fund Holders: 77

American Express Company (NYSE: AXP) is a renowned American multinational corporation in the financial services sector, primarily focusing on payment cards. With its headquarters situated in New York City, American Express Company (NYSE:AXP) offers a robust platform that enables users to engage in digital payments, facilitating seamless and secure transactions. The company holds a position among the world’s most valuable enterprises and is listed as one of the 30 components of the Dow Jones Industrial Average.

As a premium company, American Express Company (NYSE:AXP) has an impressive track record of paying regular dividends to its shareholders for the past 30 years. On May 3, the company announced a quarterly dividend of $0.60 per share, maintaining the same dividend amount as the previous quarter.

Based on Insider Monkey’s database of 943 hedge funds, it was revealed that 77 of them invested in American Express Company (NYSE:AXP) during the first quarter of 2023. Warren Buffett’s Berkshire Hathaway holds a substantial stake in the company, valued at $25 billion, which corresponds to 151 million shares as of Q1 2023. American Express is a long-standing fixture in Warren Buffett’s portfolio, with Buffett affirming that the stock will remain a permanent part of his investment holdings. The hedge fund initiated its position in American Express Company (NYSE: AXP) in Q4 2010, acquiring shares at an average quarterly price of $42.19.

ClearBridge Large Cap Value Strategy made the following comment about American Express Company (NYSE:AXP) in its first quarter 2023 investor letter:

” Other financial holdings were among the top contributors, such as American Express Company (NYSE:AXP), whose business is less sensitive to changes in the yield curve than most financials, and Progressive, which has minimal interest rate mismatch exposure.”

4. Johnson & Johnson (NYSE:JNJ)

Number of Hedge Fund Holders: 84

Johnson & Johnson (NYSE:JNJ) is an American multinational corporation founded in 1886 that is known for developing medical devices, pharmaceuticals, and consumer packaged goods. The pharmaceutical company maintains a 62-year track record of consistent dividend growth. It pays a quarterly dividend of $1.19 per share and has a dividend yield of 2.99%, as of July 8.

The number of hedge funds tracked by Insider Monkey owning stakes in Johnson & Johnson (NYSE:JNJ) grew to 86 in Q1 2023, from 84 in the previous quarter. These stakes have a consolidated value of over $4.5 billion. Johnson & Johnson (NYSE:JNJ)’s largest hedge fund investor is Ken Fisher’s Fisher Asset Management with a $967 million stake.

3. Apple Inc. (NASDAQ:AAPL)

Number of Hedge Fund Holders: 131

Hedge funds and Wall Street analysts widely concur that Apple Inc. (NASDAQ:AAPL) stands as an exceptional long-term investment option. This consensus is rooted in several factors, including Apple’s strong product lineup, substantial growth in services and software, and the company’s unwavering dedication to innovation and long-term strategies. The company has been favored by billionaire Warren Buffett for many years.

On May 4, Apple Inc. (NASDAQ:AAPL) disclosed its financial results for FQ2, outperforming Wall Street’s projections. The company achieved a GAAP EPS of $1.52 and generated revenue amounting to $94.84 billion, surpassing estimates by $0.09 and $2 billion, respectively.

Our hedge fund data for the first quarter shows 131 hedge funds long Apple Inc. (NASDAQ:AAPL). Their total stake value was $165 billion. Holding 915.6 million shares in the company, Warren Buffett’s Berkshire Hathaway was the largest stakeholder in Apple Inc. (NASDAQ:AAPL) at the end of the first quarter.

Silver Ring Value Partners made the following comment about Apple Inc. (NASDAQ:AAPL) in its first-quarter 2023 investor letter:

“Exited the Apple Inc. (NASDAQ:AAPL) put options position, as I came to the conclusion that I was wrong about the degree to which the stock is overvalued. While I still believe it’s optimistically priced, the fundamentals over the last few years made me believe that my initial decision to buy the put options was wrong.”

2. Mastercard Incorporated (NYSE:MA)

Number of Hedge Fund Holders: 136

Mastercard Incorporated (NYSE:MA) is the second-largest payment-processing corporation worldwide. Headquartered in Purchase, New York, it offers a range of financial services, including credit and debit cards, as well as data analytics, settlements, payment deferrals, and other services.

On April 27th, Mastercard Incorporated (NYSE:MA) announced its financial results for Q1, exceeding the expectations of Wall Street. The company achieved a non-GAAP EPS of $2.80 and generated a revenue of $5.7 billion, surpassing estimates by $0.09 and $60 million, respectively.

138 of the 943 hedge funds part of Insider Monkey’s database had bought Mastercard Incorporated (NYSE:MA)’s shares in Q1 2023. Out of these, Charles Akre’s Akre Capital Management is the largest shareholder since it owns 5.8 million shares that are worth $2.1 billion.

Manole Capital Management made the following comment about Mastercard Incorporated (NYSE:MA) in its second quarter 2023 investor letter:

“We like to start out all of our discussions by telling investors who we are. We are FINTECH investors, and we define Fintech as “anything utilizing technology to improve an established process.” We realize that half of Fintech is financial, but we don’t invest in traditional, credit sensitive banks. Having managed money during the Financial Crisis, we learned firsthand how certain opaque and balance sheet intensive financials could go bankrupt or insolvent.

We prefer transaction-based businesses, generating recurring revenue, with sustainable margins, and significant cash flow. From our perspective, the perfect example of a FINTECH business is the secularly growing payments industry. Names like Visa or Mastercard Incorporated (NYSE:MA), that generate revenue and profit per swipe or transaction, without the underlying credit sensitivity or risk associated with that underlying line of credit.”

1. Visa Inc. (NYSE:V)

Number of Hedge Fund Holders: 173

Headquartered in San Francisco, California, Visa Inc. (NYSE:V) is a prominent American multinational financial services corporation. The company specializes in facilitating electronic funds transfers on a global scale, predominantly utilizing Visa-branded credit cards, debit cards, and prepaid cards. As of July 8, Visa Inc. (NYSE:V), a global leader in electronic payments, offers a quarterly dividend of $0.45 per share, resulting in a dividend yield of 0.76%. Recognized as one of the world’s most valuable companies, Visa Inc. (NYSE:V) has been a longstanding investment in Warren Buffett’s portfolio.

At the end of March 31, 173 hedge funds tracked by Insider Monkey held stakes in Visa Inc. (NYSE:V), compared with 177 in the previous quarter. Collectively, these stakes are worth over $26 billion. Chris Hohn’s TCI Fund Management holds the largest stake in the company, with shares valued at approximately $4.34 billion.

Manole Capital Management made the following comment about Visa Inc. (NYSE:V) in its second quarter 2023 investor letter:

“We like to start out all of our discussions by telling investors who we are. We are FINTECH investors, and we define Fintech as “anything utilizing technology to improve an established process.” We realize that half of Fintech is financial, but we don’t invest in traditional, credit sensitive banks. Having managed money during the Financial Crisis, we learned firsthand how certain opaque and balance sheet intensive financials could go bankrupt or insolvent.

We prefer transaction-based businesses, generating recurring revenue, with sustainable margins, and significant cash flow. From our perspective, the perfect example of a FINTECH business is the secularly growing payments industry. Names like Visa Inc. (NYSE:V) or Mastercard, that generate revenue and profit per swipe or transaction, without the underlying credit sensitivity or risk associated with that underlying line of credit.”

Disclosure: None. You can also take a look at 10 Best Big Name Stocks to Buy Now and 11 Best FMCG Stocks To Buy Now.