Warren Buffett has employed a long-term investing approach to drive incredible results for Berkshire Hathaway (BRK.A -0.59%) (BRK.B -0.93%). As the Oracle of Omaha has notably stated, his preferred holding period for a stock is forever, and that buy-to-hold approach has generally served him well, even though not every investment winds up being worth owning into eternity. Berkshire Hathaway's stock has climbed by about 4,570% over the last 30 years -- enough to turn a $1,000 investment into $45,700.
If you're looking for stocks that are worth owning for the ultra long-term, taking some cues from the holdings of Buffett's famously successful conglomerate is a natural move. And in my view, these five stocks currently in the Berkshire Hathaway portfolio are worth buying and holding forever.
Image source: The Motley Fool.
1. Amazon
What started as an online bookstore has gone on to become one of the world's most influential companies. Amazon (AMZN -1.55%) leads the online retail market, and the tech giant also has a formidable position in the cloud infrastructure services market.
E-commerce and cloud services both look poised for big growth over the long term, and Amazon's massive resources and its penchant for innovation will likely help it score more wins and expand in new categories. While Berkshire Hathaway has a relatively small position in Amazon, the company remains one of the most exciting companies in the conglomerate's portfolio, and the stock looks poised to deliver impressive returns for long-term investors.
2. Apple
Apple (AAPL 1.08%) has one of the strongest brands in the world, and it's the clear leader in mobile hardware. Despite plenty of competition, Apple generates the large majority of the world's profits when it comes to smartphones and tablets, and the strength of the company's ecosystem extends to the software space as well. Not only is Apple's dedicated customer base more willing to pay a premium for iPhones and upgrade to new devices on a more regular basis, but its customers also spend much more on apps.
Apple has built a fantastic ecosystem, and it currently stands as the largest company in the world, with a market cap of roughly $2.29 trillion. It's also Berkshire Hathaway's single largest stock holding, accounting for roughly 39% of the portfolio's value thanks to repeated purchases and huge capital appreciation.
3. Bank of America
Bank of America (BAC 0.17%) stands as Berkshire Hathaway's second-largest holding and accounts for roughly 10% of the conglomerate's stock portfolio. There will always be a need for financial services, and the bank's scale and breadth of offerings for consumers, businesses, and organizations put it in a good position to help facilitate and benefit from long-term economic growth.
Berkshire established a large position in Bank of America when the financial giant was struggling back in 2011, and Buffett's company has continued to increase its holdings in the bank through the years. The stock pays a dividend that yields roughly 2.8% at the current share price, and Bank of America's improving financials over the last decade have allowed the company to get back to delivering regular annual payout growth.
Management's focus on creating foundations for responsible growth appears to have the business on track for strong performance over the long term. With the stock down roughly 31% year to date and 38% from its high amid pressures impacting financial services companies and the market at large, now could be a good time to take a buy-and-hold approach to this top bank stock.
4. Coca-Cola
Buffett's love for Coca-Cola's (KO 1.45%) sodas is no secret, and the Oracle of Omaha is a big fan of the company's stock as well. Coke accounts for 8% of Berkshire Hathaway's stock portfolio and stands as its third-largest stock holding.
While its soda sales have declined on a volume basis in recent years, the beverage giant has been able to continue growing its revenue and earnings by raising prices and branching into new product categories. Coca-Cola has fantastic brand strength, and 20 of its products generate more than $1 billion in sales each year. The company's portfolio of popular products and its large infrastructure and distribution advantages combine to create a powerful moat, and it is positioned to continue shaping its industry for decades to come.
Coca-Cola pays a dividend that at the current share price yields 3.1%, and it has raised its payout annually for 60 years straight -- putting it well past the 50-year streak required to reach Dividend King status.
5. Snowflake
Snowflake (SNOW 2.01%) is among Berkshire Hathaway's riskier holdings, but it could be one of the portfolio's best performers over the next decade and beyond. The company's data warehousing software makes it possible to combine and analyze data from the cloud infrastructure services of Amazon, Microsoft, and Alphabet. Data analytics is only becoming more important for businesses when it comes to making strategic decisions and running applications, and Snowflake's business is growing at an impressive clip. Berkshire Hathaway has a relatively small position in Snowflake, but this software leader is on track for big things.
Last quarter, Snowflake posted a net-revenue-expansion rate of 171%, which means that its existing customers increased their spending on the company's services by 71% compared to the prior-year period. The data specialist's customer count also increased by roughly 34% year over year. With the company attracting new customers and increasing its revenue from those already using its platform, Snowflake has a powerful growth engine, and continued adoption of its data platform could power market-crushing performance from the stock.
