Warren Buffett's Favorite Holdings: 3 Stocks Worth Owning for a Lifetime

Warren Buffett has been very clear over his years leading Berkshire Hathaway about his favorite stocks. He's spoken many times about what he looks for in a great stock, such as excellent management, a strong cash position, and a durable competitive advantage. He also loves dividend stocks, since paying a dividend demonstrates a company's commitment to shareholders.

Apple (NASDAQ: AAPL), Coca-Cola (NYSE: KO), and American Express (NYSE: AXP) are three stocks Buffett has praised many times and said he would hold forever. Forever has come and gone, since Buffett is no longer the CEO of Berkshire Hathaway, but new CEO Greg Abel seems to be on board with holding onto them. Here's why they're worth owning for a lifetime.

Image source: Apple.

1. Apple

Apple is the premier tech hardware company, with the premier smartphone, the iPhone. Its various devices work together to create an interconnected ecosystem of products that users love. That leads to a strong moat, which is why Apple is a reliable "forever" stock.

The iPhone continues to drive high sales despite its ubiquity. Loyal customers upgrade to new versions, creating a recurring revenue stream over time. In the 2026 fiscal second quarter (ended March 28), iPhone sales increased 21% year over year. The high-margin services segment increased 17%.

Apple is demonstrating an unexpected and highly favorable approach to artificial intelligence (AI) by working with Alphabet to "rent" and customize its large-language models instead of spending billions on AI development.

Buffett extolled Apple as a "household name," like the other stocks on this list, and said they're "really outstanding businesses." As Apple continues to upgrade its devices and provide an experience that its users don't find anywhere else, it should continue to create long-term shareholder wealth.

2. Coca-Cola

Coca-Cola is Berkshire Hathaway's longest-held stock and arguably Buffett's favorite. It's the stock he was referring to when he said his favorite holding period is forever, and he has often spoken about its global brand name and its important role in the economy.

The company has demonstrated resilience throughout the challenging period beginning with the pandemic and moving into high inflation. It's in an excellent position now, with a 12% year-over-year increase in the 2026 first quarter and a 19% increase in operating income. It has successfully navigated inflation with its pricing power and product changes, and tariffs through localized production.

Coca-Cola is the classic Dividend King. This is a company that has raised its dividend for at least 50 years consecutively, and Coca-Cola has one of the longest track records on the market, with a 64-year streak. The dividend yields 2.5% at the current price, less than usual, because the stock has increased significantly, outperforming the market this year.

3. American Express

American Express finishes the trio of favorite Buffett stocks, and it looks like that's being passed down to Abel. Under his new leadership, Berkshire Hathaway sold out of its long-term positions in Visa and Mastercard, competitors of Amex, while keeping its Amex position steady.

There are two significant ways American Express differentiates itself from most of the competition. One is its closed-loop model, which means that it funds its own credit cards from its banking segment instead of relying on third-party relationships. That gives it more control over the system and several revenue streams that play bigger roles at different times: the bank can make money on deposits when interest rates are high, and the credit card business makes money when interest rates are low and people spend more.

In general, both of these segments thrive, and that strength comes from the second differentiating feature, which is the company's membership model. Amex targets an affluent clientele that typically pays an annual fee for access to the company's highly regarded rewards program. Membership fees are a recurring revenue stream that goes straight to the bottom line and generates loyalty.

American Express also pays a growing dividend, and it's an excellent blue chip financial stock that offers long-term value.

American Express is an advertising partner of Motley Fool Money. Jennifer Saibil has positions in American Express and Apple. The Motley Fool has positions in and recommends Alphabet, American Express, Apple, Berkshire Hathaway, Mastercard, and Visa. The Motley Fool has a disclosure policy.