Warren Buffett, the legendary investor and CEO of Berkshire Hathaway, is known for its long-term investment approach and its focus on quality companies with lasting competitive advantages.
Its investment philosophy is based onbuying large companies at fair prices and on their long-term holding, a strategy that has brought notable successes over the years.
Warren Buffett's investment strategy emphasizes investing in high-quality companies with lasting competitive advantages, strong management teams and strong financial fundamentals.
Let's find out together what they are three financial stocks that Buffett says can have a permanent place in your portfolio indefinitely:
1. Coca Cola (IS)
Coca-Cola needs no introduction, it is the leading company in the soft drinks sector, with iconic brands and a large loyal customer base.
One of Buffett's classic holdings, Coca-Cola represents a company with a wide economic moat.
Being the leading beverage company in the world, Coca-Cola boasts iconic brands, a loyal customer base and significant cost advantages.
With a dominant position in the soft drinks market and a history of generating consistent cash flow, Coca-Cola is a pillar of Berkshire Hathaway's portfolio.
Investing in Coca-Cola implies benefiting from a company with a solid competitive advantage, constant cash flow generation and prudent financial management.
Coca-Cola is also one of the so-called "dividend aristocrats", having increased its dividend offering for over 25 consecutive years.
2. American Express (AXP)
American Express (AXP) is another Buffett favorite, known for its closed network including credit card issuing, payment processing and merchant relations.
This unique business model allows American Express to capture the entire economic profit from each credit card transaction.
American Express is a leader in providing payment products and services to a wide range of customers, including consumers, small businesses, medium-sized companies and large corporations around the world.
The company has a strong position among small and medium-sized businesses in the United States, which consolidates its strong financial position.
Investing in American Express offers the opportunity to participate in a company with a large, globally integrated payments network, a history of innovation and service, and a leadership position in the credit card industry.
3. Occidental Petroleum (OXY)
Occidental Petroleum (OXY) represents Buffett's foray into the energy sector, with a particular focus on carbon capture initiatives. Oxy is one of the largest independent oil and gas producers in the world.
Despite some challenges following the acquisition of Anadarko Petroleum in 2019, Occidental Petroleum's leadership position in environmental initiatives and ongoing efforts to strengthen its financial position make it an attractive long-term investment opportunity in Buffett's eyes.
Investing in Occidental Petroleum involves exposing your portfolio to the energy sector and its dynamics, including oil price fluctuations and environmental challenges.
However, Oxy's leadership in carbon capture initiatives and improved financial health could bring future benefits.
Read also: 6 stocks to buy and hold for 20 years
The information in this article is provided for informational and educational purposes only. They do not constitute in any way a solicitation for investment, a recommendation or personalized advice to buy, sell or hold the shares mentioned.
Historical performance data and reported dividend yields are not indicative of future results and do not guarantee similar returns. The value of investments and any income from them may fluctuate and there is no guarantee that you will get back the amount originally invested.
The opinions expressed on the long-term attractiveness of these securities represent the subjective opinion of the author based on available information. They should not be interpreted as a certain prediction of future share price movements.
It is recommended that you consult a qualified financial advisor before making any investment decisions. The author and the website assume no responsibility for any loss or damage arising from the use of the information in this article.
The Italian community of the FIRE movement (Financial Independence, Retire Early) to stop working and retire young.