Warren Buffett, known as the “Oracle of Omaha,” is one of the most successful investors in the world. He has built his fortune through savvy investments in various industries, and his approach to investing has been emulated by many. Buffett is known for his long-term approach to investing, seeking out companies with substantial competitive advantages and stable, predictable earnings. Recently, he has expressed a particular interest in technology stocks, as he believes they are the future of many industries.
In this article, we will look at three stocks that Warren Buffett believes are poised for success in the years to come. These stocks have been carefully selected based on their potential for growth, competitive advantages, and ability to deliver consistent returns over the long term.
Whether you’re a seasoned investor or just starting, these Warren Buffett stocks are worth considering for your portfolio.
Warren Buffett Stocks: Apple (AAPL)
Berkshire Hathaway’s (NYSE:BRK-A, BRK-B) top stock holding is currently Apple (NASDAQ:AAPL), which it started acquiring in 2016. The stake, now valued at roughly $138 billion, represents about 41% of the total value of Berkshire’s stock portfolio.
Furthermore, many investors may need to be aware that Buffett has a personal portfolio where the proportion of Apple stocks is even more significant. In a recent report, Berkshire Hathaway possesses a specialized investment services company through its General Reinsurance subsidiary. This business, called New England Asset Management, manages more than $6.3 billion in assets.
On Feb. 15, Berkshire Hathaway Inc. disclosed various adjustments to its stock portfolio in paperwork submitted to the Securities and Exchange Commission. Given Buffett’s remarkably successful investment track record over the years, numerous investors closely track the company’s actions.
In more recent news, a bullish call from investment bank Goldman Sachs (NYSE:GS) has led to renewed interest in Apple stock. The banking giant has predicted that the technology giant has over 30% growth potential and has set a $199 price target for Apple’s stock. As a result, numerous investors are keen to acquire shares in the iPhone manufacturer.
As always, Warren Buffet knows what he’s doing.
Chevron (NYSE:CVX) is among the leading oil majors, renowned for its impressive history of providing favorable returns to its shareholders. The company achieved unprecedented profits in the previous year, subsequently distributed among its shareholders.
In March, the company augmented its dividends by 6% to $1.50 and recently unveiled a new $75 billion share buyback program, which will commence in April. Given the favorable operating conditions, it’s reasonable to believe that this Dividend King will continue to benefit its shareholders and potentially even exceed expectations.
Chevron recently conducted its Investor Day, reaffirming its dedication to providing exceptional returns to its shareholders by utilizing its robust balance sheet, efficient capital allocation, and complete asset portfolio. Suppose Brent crude was to maintain an average price of $70 per barrel over the next five years. In that case, Chevron could pursue accelerated increases in its dividend and repurchase 25% of its outstanding shares.
By monitoring the portfolio of Buffett’s company, Berkshire Hathaway, it’s evident that he’s following his recommendations. The investment company has invested significantly in the energy and oil corporation Chevron. Although the firm had already made a substantial investment in Chevron (with a $4.5 billion stake in 2021), the stock currently represents its fourth-largest public holding, valued at $25.9 billion today.
In 1988, Warren Buffett acquired over $1 billion worth of shares of The Coca-Cola Company (NYSE:KO), accounting for 6.2% of the company’s total shares. This investment also became the biggest holding in Berkshire Hathaway Inc.’s portfolio then.
As of September 2022, Coca-Cola still represents one of the most significant holdings of Berkshire Hathaway, with the holding company possessing a stake of more than $25.4 billion, which corresponds to 9.2% of the company’s worth.
Buffett is known for his ability to create wealth for himself and his investors. His strategy involves identifying the critical competitive advantages of a business that can be sustained for an extended period, investing in it, and holding on to the stock for years. Buffett’s famous quote, “The best time to buy is whenever you have money, and the best time to sell is never,” illustrates his long-term investment philosophy.
Coca-Cola recently provided investors with positive news regarding its 2023 fiscal year. The company ended 2022 on a high note, with sales growth increasing and profitability remaining stable. This has given investors reason to feel optimistic about the future of the beverage giant.
Due to its positive short-term outlook, Coca-Cola is expected to provide reasonable returns to its shareholders this year. Even though the company’s organic sales trend is predicted to slow down slightly from last year’s 16% increase, and it is still likely to be between 7% and 8%, higher than PepsiCo’s projection of a 6% increase.
On the date of publication, Chris MacDonald owns shares in BRK-B, AAPL, and KO. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.