Warren Buffett's Legacy: 3 of His Favorite Stocks to Buy and Hold Forever

It's the end of an era. As of the close of 2025, the legendary Warren Buffett has officially stepped down from his long and highly successful tenure as the chief executive officer of Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B).

However, Buffett's investment philosophy will live on for a long time, and a key part of his approach is to seek companies worth holding on to for the long term. Many of Buffett's favorite stocks fit that profile. Here are three that investors should consider buying: Berkshire Hathaway itself, Apple (NASDAQ: AAPL), and Coca-Cola (NYSE: KO).

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1. Berkshire Hathaway

How do we know Buffett loves Berkshire Hathaway? Besides the fact that he was the head of the company for decades, Buffett and his team have repurchased billions worth of the conglomerate's shares in recent years. That sends a clear signal to investors. Buffett still has confidence in Berkshire Hathaway's long-term prospects, and investors should too. Even without its iconic leader in the CEO position, the company remains a vast and diversified business empire.

Berkshire Hathaway owns subsidiaries across various industries, including energy, railroads, insurance, and more. The result is that, even as some businesses aren't performing well, others pick up the slack. Then there is Berkshire Hathaway's vast portfolio that includes several dozen stocks, also diversified across many sectors and industries. We also have some brilliant minds doing the stock picking.

Berkshire Hathaway is about as close as investors can get to buying an exchange-traded fund (ETF) that tracks the performance of a major index without actually buying one. One important factor in the company's long-term outlook is that the next generation of leaders was chosen by Buffett and his longtime (and now deceased) business partner, Charlie Munger.

The philosophy that made Berkshire Hathaway extremely successful will continue to live on within the company, being implemented by leaders such as Greg Abel -- the new CEO -- and Ajit Jain, among others. These people have consistently demonstrated their value over the years, and they are ready to lead Berkshire Hathaway into the future. That's why the stock remains a great forever pick.

2. Apple

Apple has been Berkshire Hathaway's top holding for years, despite the conglomerate reducing its stake recently. Additionally, Buffett once described it as the best business in the world. That's high praise from the Oracle of Omaha.

However, some people don't share his optimism regarding Apple's future. The company is trailing its tech giant peers in the artificial intelligence market. It is also facing the threat of tariffs from the Trump administration. Even with these challenges, though, Apple remains a top buy-and-hold option.

Here are three reasons. First, the iPhone is proving it can still generate excellent sales. The latest version, the iPhone 17, has generated significant demand and contributed to improving Apple's top-line growth, returning it to levels not seen in several years. That will keep going, given the company's guidance for its next quarter.

This brings us to our second point: Apple has a large and growing installed base of devices. Given the company's high switching costs and network effects within its app store, it has a strong moat that will enable it to retain most of its customers.

Third, Apple's services segment is growing faster than the rest of the business. This high-margin unit should, over the long run, eventually boost Apple's profit and margins. All these factors collectively make a strong case for holding on to Apple's stock for the long term.

3. Coca-Cola

Coca-Cola has been in Berkshire Hathaway's portfolio longer than any other stock -- more than 35 years now. That shows Buffett's confidence in the company. What makes the stock such a good forever pick? Coca-Cola has a business that generates fairly consistent revenue and earnings, even during challenging times.

One reason it is able to do so is its popular brand name, which consistently attracts customers and enables it to command shelf space in retail stores. Another important aspect of Coca-Cola's strategy is its ability to quickly adapt to consumer demands, some of which are region-specific.

Coca-Cola operates in more than 200 countries and has managed to appeal to diverse tastes and preferences across different countries and cultures. That speaks volumes about the company.

Coca-Cola offers something else Buffett loves: A fantastic dividend program. The beverage maker is part of the exclusive group of Dividend Kings, which is made up of corporations that have increased their payouts every consecutive year for at least 50 years. Coca-Cola's streak currently stands at 63. The stock has much more to offer income and long-term investors who, like Berkshire Hathaway, decide to stay the course.

Prosper Junior Bakiny has positions in Berkshire Hathaway. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway. The Motley Fool has a disclosure policy.