Warren Buffett’s 10 Longest-Held Stocks

1. The Coca-Cola Company (NYSE:KO)

Warren Buffett’s First Major Purchase:  1988

Berkshire Hathaway’s stake in Q3 2024: $28.74 billion

The Coca-Cola Company (NYSE:KO) is a global beverage industry leader that is best known for its iconic Coca-Cola drink. In addition to its main product, the company manufactures, distributes, and markets a wide variety of non-alcoholic beverages, including syrups, concentrates, and, more recently, alcoholic drinks. Despite Warren Buffett’s changing portfolio, one thing has remained constant over the last 30 years: his position in and love for The Coca-Cola Company (NYSE:KO). The billionaire almost never misses an opportunity to discuss why it is his favorite stock to own.

Piper Sandler reduced its price target for The Coca-Cola Company (NYSE:KO) shares from $74 to $73 in its most recent outlook on January 23. Despite this shift, the firm maintained an Overweight rating on the beverage giant’s stock. The change was made in response to increased currency headwinds expected in 2025, which Piper Sandler analysts factored into their financial models. The firm now expects a -2.5% impact from currency fluctuations, which is a larger problem than the -1.2% it previously predicted. In addition, The Coca-Cola Company (NYSE:KO) anticipates low-single-digit currency headwinds in 2025. The company also expects inflationary market pressures on prices to ease during the same year.

Coca-Cola’s revenue in the third quarter of 2024 was close to $12 billion, $290 million higher than analysts predicted. The company generated significant cash, as evidenced by its $2.9 billion operating cash flow and $1.6 billion free cash flow. Its impressive adjusted operating margin of 30.7% reflected its high profitability.

While we acknowledge the potential of KO, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than KO but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

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