In this article, we will take a look at Warren Buffett’s 10 Longest-Held Stocks.
‘The Oracle of Omaha’
Known as the Oracle of Omaha, Warren Buffett will undoubtedly go down as one of the greatest and most prosperous value investors in history. During the booming stock market of the 1960s, the billionaire investor used his investment partnership to purchase Berkshire Hathaway, a struggling textile company in New England, which now stands as a global titan.
Buffett has often underlined the need to fully know the internal operations of a company before making any investments. His strategy focuses on finding companies with strong, scalable models that are ready for expansion and market leadership, as well as those that have much to gain from a subsequent increase in stock value. Both investors and market analysts have frequently praised this methodical, long-term investment strategy, particularly in light of Berkshire becoming one of the most recent non-tech companies to reach a $1 trillion market capitalization.
However, despite a generally strong market performance for much of 2024, Buffett appears to have shifted towards a more defensive stance. As interest rates climbed and economic conditions weakened, Buffett significantly reduced his holdings in companies experiencing rapid valuation increases. By late 2024, Berkshire had amassed over $325 billion in cash and cash equivalents, predominantly held in U.S. Treasury bills. This suggested that Berkshire avoided making major investments in popular stocks, even during periods of market optimism. That said, Warren Buffett’s decision to hoard cash might not be a random one. In fact, it mirrors strategies he has used in the past during previous financial downturns. As an example, the billionaire adopted a somewhat similar approach at the onset of the dot-com bubble in the early 2000s and again in the lead-up to the 2007-2008 financial crisis. In both these instances, Buffett foresaw market turbulence and positioned Berkshire to navigate the challenges by maintaining substantial liquidity.
Warren Buffett’s Stance on Cryptocurrency
Warren Buffett has repeatedly stated that he is not a fan of cryptocurrency. During Berkshire’s 2018 annual shareholder meeting, Buffett called Bitcoin “probably rat poison squared.” In Berkshire’s 2022 shareholder meeting, the billionaire once again stated:
“If you told me you own all of the Bitcoin in the world and you offered it to me for $25, I wouldn’t take it because what would I do with it? I’d have to sell it back to you one way or another. It isn’t going to do anything.”
Recent reports, however, indicate that the Oracle of Omaha seems to be softening his stance on cryptocurrencies. Berkshire has invested in Nu Holdings, a digital banking company based in Brazil that supports the cryptocurrency market and operates its own platform. In a 2021 Series G funding round, Buffett’s company contributed $500 million, followed by another $250 million. Nubank Crypto, Nu’s cryptocurrency platform, was launched in 2022 and supports Bitcoin, Ethereum, and Polygon. Berkshire’s stake in Nu increased from 0.1% in the fourth quarter of 2022 to 0.4% in the third quarter of fiscal 2024.
Our Methodology
To create our list of Warren Buffett’s longest-held stocks, we analyzed his Q3 2024 investment portfolio and selected stocks that he has consistently held for the longest duration. These figures were sourced from the Insider Monkey Database.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
10. Charter Communications, Inc. (NASDAQ:CHTR)
Warren Buffett’s First Major Purchase: 2016
Berkshire Hathaway’s stake in Q3 2024: $914.5 million
Charter Communications, Inc. (NASDAQ:CHTR) is a well-known cable and broadband provider that serves both residential and business customers. Charter Communications, Inc. (NASDAQ:CHTR) provides services such as voice, television, and internet. The company launched a multibillion-dollar Rural Construction Initiative to build new fiber-optic network infrastructure in underserved rural areas.
RBC Capital Markets maintained Charter Communications’ Sector Perform rating but revised its outlook on January 15, lowering the company’s price target from $390 to $380. In comparison to the firm’s previous estimate of 70,000 and the consensus estimate of 141,000, RBC Capital predicts Charter Communications, Inc. (NASDAQ:CHTR) will incur larger residential internet net losses of 120,000 in the fourth quarter of 2024. That said, these updates are expected to have only a slight impact on Charter’s consolidated financials. RBC Capital expects the company to generate $13.9 billion in revenue, $5.7 billion in EBITDA, and $0.6 billion in free cash flow (FCF) in the fourth quarter of 2024. Revenue and EBITDA are in line with consensus estimates; however, FCF is lower than expected.
Charter Communications, Inc. (NASDAQ:CHTR) is also planning to buy Liberty Broadband in an all-stock transaction, which is expected to increase liquidity and direct ownership for Liberty Broadband shareholders. The transaction is expected to close in late June 2027.
9. Apple Inc. (NASDAQ:AAPL)
Warren Buffett’s First Major Purchase: 2016
Berkshire Hathaway’s stake in Q3 2024: $69.9 billion
Few people are unfamiliar with the name Apple Inc. (NASDAQ:AAPL), the technology giant renowned for its flagship devices, such as the iPhone, Mac, and Apple Watch, as well as its diverse suite of services, such as iCloud and Apple Music. Given the 2.2 billion Apple devices in the world, the company has a significant platform from which to introduce its AI services.
BofA analysts predict that strong initial demand for the iPhone 16 will drive Apple’s fiscal Q1 2025 results on January 30. However, due to fewer iPhone shipments, they expect a lower March quarter guidance. The bank predicts that iPhone sales will fall to 49 million units in the March quarter, less than the street consensus of 52 million and lower than their previous estimate of 56 million. Macroeconomic challenges and the delayed release of Apple Intelligence features, which analysts claim are “yet to gain widespread adoption,” are to blame. BofA reduced its iPhone sales projections for fiscal 2025 and 2026 from 239 million and 257 million units to 229 million and 246 million units, respectively. Despite this, the firm reiterates its Buy rating for Apple Inc. (NASDAQ:AAPL), citing “margin resiliency, tailwinds to gross margin, and strong cash flow.”
Apple Inc. (NASDAQ:AAPL) reported $94.9 billion in revenue for the fourth quarter of 2024, representing a 6% increase over the same period the previous year. Product revenue increased from $67 billion to nearly $70 billion in 2023. The company also reported $27 billion in operating cash flow and paid out $29 billion in dividends.
Greenlight Capital stated the following regarding Apple Inc. (NASDAQ:AAPL) in its Q4 2024 investor letter:
“We continue to be concerned about the overall valuation of the market and have maintained a lower-than-average net market exposure. In fact, our daily correlation to the S&P 500 last year was 0.01. Cyclically and interest rate adjusted valuations are as high as we can remember.
A look at a prior favorite company of ours, Apple Inc. (NASDAQ:AAPL), shows that the stock at times sported a single digit P/E ratio and achieved 19.2% compounded revenue growth during the eight years we owned it. The last couple of years AAPL has had no revenue growth, but the P/E multiple has expanded from 22x to 37x. In this environment, we can’t say the multiple won’t expand to 45x a year from now. It might. But we don’t see why it should or what the investment appeal is at this valuation.”
8. The Kraft Heinz Company (NASDAQ:KHC)
Warren Buffett’s First Major Purchase: 2015
Berkshire Hathaway’s stake in Q3 2024: $11.43 billion
The Kraft Heinz Company (NASDAQ:KHC) is a global leader in food and beverage production that was formed in 2015 through the merger of Kraft Foods and Heinz. The company produces a wide range of products, including dairy, meat, condiments, beverages, and other groceries.
In its Q3 2024 earnings report, The Kraft Heinz Company (NASDAQ:KHC) reported a lower-than-expected quarterly revenue decline, with net sales falling 2.8% to $6.38 billion. Moreover, Kraft Heinz’s 2024 earnings per share estimate was lowered to the lower end of its earlier range of $3.01 to $3.07. The company’s gross profit margin, however, rose by 20 basis points to 34.2%.
On January 21, Thomas Palmer, a Citi analyst, maintained his buy rating on The Kraft Heinz Company (NASDAQ:KHC) shares but reduced his price target from $38 to $34. According to the analyst, the food and beverage giant may face a number of challenges in 2025, including muted measured takeaway trends, escalating foreign exchange fluctuations, and the expectation of more aggressive promotional tactics from key competitors. Despite these concerns, Palmer proposed that the current stock price may already account for the possible detrimental effect on the company’s financial performance in 2025. This implies that, given the anticipated challenges, the market may have preemptively adjusted its expectations.
7. VeriSign, Inc. (NASDAQ:VRSN)
Warren Buffett’s First Major Purchase: 2012
Berkshire Hathaway’s stake in Q3 2024: $2.43 billion
VeriSign, Inc. (NASDAQ:VRSN), a multinational provider of network infrastructure and domain name registry services, serves as the sole registry for the .com and .net domains. Berkshire recently spent about $45.4 million to add approximately 234,000 shares to its VRSN holdings. Buffett now owns a 14% stake in VeriSign, Inc. (NASDAQ:VRSN), with 13.3 million shares worth approximately $2.7 billion in Q4 2024.
Baird upgraded VeriSign (NASDAQ:VRSN) stock back in December, moving the rating from Neutral to Outperform and raising the price target to $250 from $200. The decision followed a period of underperformance relative to the S&P 500, with VeriSign’s shares remaining roughly flat over the last five years while the S&P 500 has grown. According to Baird, regulatory concerns that had previously weighed on VeriSign’s stock have been resolved, allowing the company to refocus on its domain growth strategy.
VeriSign’s third quarter 2024 results showed a modest 3.8% increase in revenue to $391 million, as well as a 13.1% increase in earnings per share to $2.07. During the quarter, the company repurchased 1.7 million shares for $301 million and maintained a steady liquidity position of $645 million in cash.
6. DaVita Inc. (NYSE:DVA)
Warren Buffett’s First Major Purchase: 2011
Berkshire Hathaway’s stake in Q3 2024: $5.91 billion
DaVita Inc. (NYSE:DVA) is a leading kidney dialysis provider in the United States, operating 367 facilities in 11 countries and 2,675 outpatient centers domestically. DaVita Inc. (NYSE:DVA) has long been a favorite stock in Warren Buffett’s portfolio. The Oracle of Omaha has owned the healthcare stock since the fourth quarter of 2011, making it one of his most consistent investments.
DaVita Inc. maintained its adjusted operating income guidance for 2024 of $1.91 billion to $2.01 billion in Q3 2034. In the quarter, the company reported earnings per share of $2.59 and adjusted operating income of $535 million. With 2028 as the closest maturity date, the company has effectively managed its debt, and its leverage is within the desired range.
Moreover, DaVita Inc. (NYSE:DVA) successfully handled operational difficulties, minimizing the effects of hurricanes and continuing to control labor and medical expenses. The company is preparing for a regulatory shift involving oral-only medications into Medicare Part B, which could improve patient access and efficiency, and expects supply chain conditions to return to normal by early 2025.
5. Visa Inc. (NYSE:V)
Warren Buffett’s First Major Purchase: 2011
Berkshire Hathaway’s stake in Q3 2024: $2.28 billion
Visa Inc. (NYSE:V) is a pioneer in digital payments that connects 4 billion account holders to over 130 million merchants and 14,500 financial institutions in more than 200 markets. Thus, Visa Inc. (NYSE:V) is considered a major force in the world economy. Just last year, the Visa network processed 639 million transactions per day, or 234 billion transactions in total.
Visa Inc. (NYSE:V) recently enacted a strategic investment in Nigerian fintech company Moniepoint, exhibiting the company’s commitment to promoting the growth of small and medium-sized businesses across the African continent. Furthermore, Visa Inc. (NYSE:V) purchased Featurespace, a company that specializes in using artificial intelligence technology to secure payments. Visa hopes that the acquisition will strengthen its fraud detection and risk-scoring capabilities.
On January 24, Piper Sandler raised its target price for Visa Inc. (NYSE:V) from $322 to $368, maintaining an Overweight rating. It’s expected that the company will continue to work on incorporating AI into its offerings, particularly with the addition of GenAI to its technology stack and upgrades to Visa Account Attack Intelligence (VAAI). Piper Sandler analysts believe that these moves will eventually allow Visa Inc. (NYSE:V) to reduce its fraud losses even further.
Mar Vista Global Strategy stated the following regarding Visa Inc. (NYSE:V) in its Q3 2024 investor letter:
“After lagging the broader markets over the last one, three, and five years, we believe Visa Inc.’s (NYSE:V) stock now reflects a more conservative and realistic expectation for future cash flow growth. The electronic transaction toll-taker has long enjoyed a highly defensible network effect that connects global buyers and sellers and scale advantages that keep upstart competitors from disrupting the industry’s economics. At the same time, Visa directly benefits from the secular trend of replacing cash with e-payments. Penetration rates and transaction volumes in developed markets will inevitably slow over the next five years yet we expect Visa revenues to grow 8-10% over our investment horizon. Key value drivers remain global consumer spending growth, e-transaction penetration, “new flows” expansion in areas like business-to-business transactions, and lastly, value-added client service growth.
Visa’s dominant position is reflected in its nearly pristine financials: 68% operating margins, greater than 70% incremental operating margins and only 3-4% capital expenditures as a percent of sales. Awash in excess capital, Visa is one of the more aggressive purchasers of its own stock. Shares outstanding over the last fifteen years have declined by one-third and we expect the company to continue to repurchase 2-3% of shares outstanding annually. Since the 2016 acquisition of Visa Europe, total returns on capital have expanded from 25% to 50% and we expect the metric to approach 100% over the next five years as net operating profits expand roughly 60% on a flat capital base. Overall, Visa should compound per share intrinsic value at 10-13% over the next five years.”
4. Mastercard Incorporated (NYSE:MA)
Warren Buffett’s First Major Purchase: 2011
Berkshire Hathaway’s stake in Q3 2024: $1.96 billion
A global leader in payment technology, Mastercard Incorporated (NYSE:MA), provides services to a wide range of clients, including individuals, small and medium-sized enterprises, banks, credit unions, and government agencies. Known for its consistent dividend payments, Warren Buffett has favored the company for more than a decade.
Mastercard’s revenue increased 13% year-over-year in the third quarter of 2024, owing to strong consumer spending and improved global economic conditions. In addition, a 10% year-over-year increase in gross dollar volume and a 17% year-over-year increase in cross-border volumes show that both travel-related and overall spending continues to rise. Revenue from value-added services increased by 18%, outpacing overall growth, and operating margins rose to 59.3%, resulting in a 16% increase in EPS.
On January 14, Seaport Global downgraded its rating for Mastercard Incorporated (NYSE:MA) from Buy to Neutral. The firm stated that, while the overall narrative surrounding the payments processor remains positive, the potential for revenue growth in 2025 appears to be more constrained. This assessment is made in light of MasterCard’s extensive international exposure compared to its competitor Visa.
Qualivian Investment Partners stated the following regarding Mastercard Incorporated (NYSE:MA) in its Q3 2024 investor letter:
“Mastercard Incorporated (NYSE:MA): Q2 2024 revenues and EPS beat consensus expectations, growing 11% (+13% on a constant currency, CC, basis) and 24% (+27% on a CC basis) respectively. Overall payments volume increased 9%, with highly profitable cross-border volumes growing 17%. Management qualified their expectations for a solid FY2024 anchored around continued stable consumer spending, while noting there is uncertainty regarding the overall macroeconomic backdrop heading into the back half of 2024 and 2025. In the event of a weakening consumer, management noted they would adjust investment priorities as well as the company’s cost structure as appropriate if trends softened further. We continue to expect that over the longer term, MA will continue to drive and benefit from the digitization of payments globally.”
3. Moody’s Corporation (NYSE:MCO)
Warren Buffett’s First Major Purchase: 2000
Berkshire Hathaway’s stake in Q3 2024: $11.7 billion
Moody’s Corporation (NYSE:MCO) is an integrated risk assessment company that provides credit research, credit models, analytics, and economic data as part of its risk management services. Moody’s Corporation (NYSE:MCO) remains one of Warren Buffett’s oldest and most enduring investments due to its dominant position in the credit ratings industry.
Back in December, Citi began covering Moody’s Corporation (NYSE:MCO) with a price target of $565 and a Buy rating. The firm identified a number of factors that could contribute to a favorable credit issuance cycle and expressed confidence in the company’s prospects, including the Federal Reserve’s easing of policy, tight credit spreads, a large number of impending debt maturities, a more balanced mix of high-yield issuances, $2.6 trillion in dry powder private equity, and below-average mergers.
Moody’s Corporation (NYSE:MCO) reported strong financial results for the third quarter of 2024, including a 32% increase in adjusted diluted earnings per share and a 23% increase in revenue of $1.8 billion. This expansion was largely driven by the ratings industry, especially investment-grade issuance, which saw a 70% increase in transaction revenue. Moody’s also expanded its lending portfolio to include Numerated Growth Technologies, a platform that allows financial institutions to initiate loans. For financial institutions navigating the digital lending landscape, this integration might produce a more complete solution.
2. American Express Company (NYSE:AXP)
Warren Buffett’s First Major Purchase: 1991
Berkshire Hathaway’s stake in Q3 2024: $41.1 billion
American Express Company (NYSE:AXP) is a leading bank holding company that provides a comprehensive digital payments platform that includes credit cards, charge cards, and financing options. One of the primary reasons it ranks as an industry leader is due to its premium brand. Customers with higher incomes who can spend more than the typical consumer are drawn to the company because of its reputation.
On January 27, RBC Capital Markets reaffirmed its Outperform rating for American Express Company (NYSE:AXP) and raised its price target from $330 to $350. The adjustment came as a response to the company’s recent fourth-quarter earnings report, which highlighted a number of key performance metrics. According to RBC, American Express’ core results were strong, with revenue rising 9.3% annually to $60.76 billion, fueling positive consumer spending trends. This occurred in the context of higher costs, which the analysts believed were reasonable. The credit quality was also described as extremely stable, and the provisions were slightly lower than anticipated.
American Express Company (NYSE:AXP) was highlighted by GreensKeeper Asset Management in its Q3 2024 investor letter:
“American Express Company (NYSE:AXP) was our second-largest contributor this quarter, with a return of +17.1%. AXP continues to invest in its customers beyond traditional credit card rewards, recently enhancing its Global Dining Access to provide Platinum cardholders with exclusive reservations at premier restaurants worldwide. This focus on unique experiences has attracted a younger demographic, with millennials and Gen Z driving most of the customer acquisition and card spending growth in recent quarters. Exclusive events are more challenging to replicate than standard point reward systems, presenting a challenge for competing card issuers that lack AXP’s scale and concentrated base of affluent consumers. AXP has fine-tuned its offerings over decades to strengthen its network effect and shows no signs of slowing down.”
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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