3 Warren Buffett Stocks to Buy With $1,100 and Hold Forever
This stellar long-term performance is why investors closely monitor Berkshire Hathaway's investment portfolio. Every quarter, the Securities and Exchange Commission (SEC) requires institutional investors with over $100 million in assets under management to file Form 13F, which discloses their investment holdings.
While Berkshire has trimmed several of its stock positions over the past year, it continues to hold on to some of its best performing stocks. Here are three Buffett stocks that could make an excellent addition to your long-term portfolio today.
American Express
American Express (NYSE: AXP) has carved out a place as consumers' go-to card thanks to its strong branding and marketing. Since it first entered the credit card market in the 1950s, the credit card company has positioned itself as a premium offering that customers often associate with luxury and decadence.
Over the decades, American Express has attracted high-earning, high-spending customers with its invite-only Centurion Card (Black Card). This card is the ultimate signal of luxury, reportedly requiring a quarter of a million dollars in annual spending and commanding an annual fee of $5,000. Its Platinum Card is a more affordable option, with a $695 annual fee, and rewards high-spending consumers with perks like airport lounges, travel rewards, and credits for dining and entertainment.
The company earns interest income from its credit card loans. Also, it collects a small fee for every transaction through its network, helping it benefit from periods of growing consumer spending alongside an expanding economy. This, coupled with its recognizable brand, is why Berkshire Hathaway invested in the company in the 1990s and continues to hold its shares today, making it one of Berkshire's longest held investments in its stock portfolio.
Last year was another excellent one for the company, which grew revenue by 10% to $74 billion while earnings per share (EPS) surged 25% to $14.02. The stock recently fell after CFO Christophe Le Caillec guided down earnings growth for the first quarter. However, the recent weakness in the stock looks like a solid buying opportunity for long-term investors.
Moody's Corporation
Moody's (NYSE: MCO) is another stock that has been a part of Berkshire Hathaway's portfolio since it spun off from Dun & Bradstreet in 2000. Moody's is the second largest credit rating agency in the United States, behind only S&P Global.
Because of the high barriers to entry, Moody's enjoys a significant competitive advantage. Not only do regulations make it hard to break into credit ratings, but all of the major credit rating agencies (including Fitch Ratings, the third largest in the U.S.) have built up their businesses and reputations over a century or longer.
Moody's benefits from the ongoing growth of public and private debt, which requires their expertise in credit ratings to help investors manage their risks effectively. In the past few years, rising interest rates have put pressure on corporate debt issuance, weighing on one of Moody's primary sources of revenue.
Despite this, the company has performed well thanks to its Moody's Analytics segment, which provides risk-related data and analytics. With its high retention rates and a subscription-based revenue model, this segment helps offset weakness in its credit ratings business and provides a steady income stream.
Moody's continues to grow steadily and has an excellent operating margin of around 42%. The company continues to reward investors through dividends and share buybacks, and is a stellar Buffett stock to hold on to for the long haul.
Chubb
Chubb (NYSE: CB) is one of Berkshire Hathaway's more recent stock additions in the past couple of years, with the conglomerate adding 27 million shares in late 2023 and early 2024. The company had accumulated this position over several quarters, keeping its purchase confidential so as not to tip its hand to investors.
Chubb is a large multinational insurance company with a global reach. The company's coverages include property, casualty, professional liability, cybersecurity, environmental, marine, and general liability.
What makes Chubb stand out is its ability to balance risk and price its policies appropriately to earn an underwriting profit consistently. Over several decades, the company has consistently outperformed peers in underwriting profitability, which is a big reason it has grown its dividend payout for 31 consecutive years.
Another benefit to owning Chubb is its ability to capitalize on today's higher interest rate environment. Chubb has a significant investment portfolio of $150 billion. With interest rates today higher than in the previous decade, Chubb can enjoy increased yields on its fixed-income investments, contributing to its overall profitability. Last year, Chubb earned $5.9 billion in net investment income, an increase of 20% from 2023.
Chubb has a proven track record of underwriting discipline and is well positioned to grow alongside an expanding economy or inflation, should it persist. The company's global reach, pricing power, and significant investment portfolio make it another excellent Buffett stock to hold on to for the long haul.
Don't miss this second chance at a potentially lucrative opportunity
Ever feel like you missed the boat in buying the most successful stocks? Then you'll want to hear this.
On rare occasions, our expert team of analysts issues a 'Double Down' stock recommendation for companies that they think are about to pop. If you're worried you've already missed your chance to invest, now is the best time to buy before it's too late. And the numbers speak for themselves:
Nvidia: if you invested $1,000 when we doubled down in 2009, you'd have $311,551!*
Apple: if you invested $1,000 when we doubled down in 2008, you'd have $44,990!*
Netflix: if you invested $1,000 when we doubled down in 2004, you'd have $519,375!*
Right now, we're issuing 'Double Down' alerts for three incredible companies, and there may not be another chance like this anytime soon.
Continue »
*Stock Advisor returns as of February 28, 2025
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Globe and Mail
7 hours ago
- Globe and Mail
4 No-Brainer Blue Chip Stocks to Buy With $2,000 Right Now
Key Points Blue chip companies have established sound business models that can deliver solid returns over time. These companies often operate in stable industries with steady demand for their services. They also tend to display a strong economic moat through pricing power and barriers to entry. 10 stocks we like better than Berkshire Hathaway › Investing in the stock market is one way to build enduring, long-term wealth. As an investor, you could choose to invest in high-flying growth stocks, dividend stocks that provide passive income, or more conservative investments that can preserve and grow your investments steadily over time. One strategy you can consider is investing in blue chip companies. These companies have withstood the test of time thanks to sound business models that have led to solid returns for patient investors. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » Blue chips typically offer reliable dividends and steady long-term growth, making them appealing to both seasoned investors and newcomers seeking to establish a solid financial foundation. Here are four blue chip stocks you can invest in today. Berkshire Hathaway Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) has thrived under the leadership of its longtime CEO, Warren Buffett. Since 1965, Buffett has led the conglomerate to 20% annualized returns, or enough to turn a $100 investment into $5.5 million today. So when Buffett announced earlier this year he was stepping down at the end of 2025, it took the wind out of the sails of Berkshire Hathaway stock, which is down 12% since the announcement in early May. However, Berkshire Hathaway is a widely diversified conglomerate with holdings across numerous industries, including insurance, transportation, materials, consumer goods, and energy. Its insurance operations help generate a steady stream of cash flow, which it can invest in treasuries or equities, or use to acquire companies outright. What makes Berkshire appealing right now is its massive cash pile and positive tailwinds from higher interest rates. The Federal Reserve is cautious about cutting interest rates due to concerns about inflation stemming from higher tariffs. This has resulted in rates staying "higher for longer," and Berkshire has benefited to the tune of $2.9 billion in interest income in the first quarter. Berkshire will be under new leadership, led by CEO Greg Abel, with its investment portfolio managed by Todd Combs and Ted Weschler, the investing lieutenants tapped by Buffett and the late Charlie Munger over a decade ago. While the uncertainty around its future remains, I think it's well-capitalized and diversified enough that it's a buy at today's price. Progressive Progressive (NYSE: PGR) is the second-largest automotive insurer in the United States. What sets this blue chip company apart is its disciplined underwriting, strong brand, and direct-to-consumer model. The company relies heavily on technology and data to accurately price risk and was one of the original companies to adopt usage-based insurance, known as telematics. This approach utilizes driver data to price policies, which is one reason the company has outperformed its competitors. Progressive's track record of navigating underwriting cycles while maintaining profitability distinguishes it. Going back 23 years, the company's combined ratio has averaged 92%, which is significantly lower than the industry average of 100%. Put differently, Progressive has earned an average of $8 in underwriting profit for every $100 in premiums. As a stock, Progressive offers defensive characteristics with upside. Insurance is a stable industry that enjoys steady demand, and Progressive has demonstrated its ability to outperform its peers in underwriting profitability. The company is also well-positioned to perform if inflation and interest rates were to remain elevated. That's because it has pricing power, allowing it to adapt to rising costs, and it also earns interest on float (the cash it collects from premiums but hasn't yet paid out in claims). Its stellar long-term performance and ongoing strong underwriting make Progressive an excellent blue chip stock to consider adding to your portfolio today. Chubb Chubb (NYSE: CB) is one of the world's largest publicly traded property and casualty insurers, recognized for its underwriting discipline, global diversification, and robust balance sheet. It operates across commercial and personal lines, with a reputation for serving high-net-worth individuals and complex corporate risks. Its conservative approach to risk, coupled with a broad international footprint, has enabled it to weather economic cycles well. Chubb has been a solid dividend stock for investors, growing its payout for 32 consecutive years. With a yield of 1.4% and an average annual total return of 11.7% over the past two decades, the company offers investors a balanced combination of income and stock price appreciation. It also enjoys the benefits that Progressive does, such as pricing power and interest income, making it another solid blue chip stock to consider owning today. S&P Global S&P Global (NYSE: SPGI) plays a key role in markets. The company is perhaps best known for its S&P 500 index, but it also provides credit ratings, data, and analytics. Barriers to entry make it difficult to break into the credit ratings space, and S&P Global holds a 50% share of this market. S&P Global's business model is resilient and scalable. Credit rating demand rises with bond issuance, while its index and data segments enjoy recurring fees from ETF licensing and subscriptions. The company also has low capital requirements, which enables it to enjoy high margins, recurring revenue, and a global reach. The company has raised its dividend payout for 53 years, making it an exclusive member of the Dividend Kings club. While it offers a modest dividend yield of 0.7%, when combined with its stock price appreciation, S&P Global has returned 15.3% annually over the past two decades. For investors, S&P Global offers growth and a wide moat along with steady cash flows, making it a quality blue chip stock to own today. Should you invest $1,000 in Berkshire Hathaway right now? Before you buy stock in Berkshire Hathaway, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Berkshire Hathaway wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $671,477!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,010,880!* Now, it's worth noting Stock Advisor 's total average return is1,047% — a market-crushing outperformance compared to180%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 7, 2025
Globe and Mail
8 hours ago
- Globe and Mail
These 3 Technology Leaders, Up 36% to 69%, Have Soared Since Trump's "Liberation Day." Should You Buy Them Now?
Key Points Palantir's growth is on fire, but investors may also wonder whether it can continue. Reddit stock is once again surging, thanks to its growth and role within the AI ecosystem. Netflix has become a cash cow, and the future remains bright. 10 stocks we like better than Palantir Technologies › The stock market has been somewhat of a roller coaster since President Donald Trump unveiled widespread tariffs on April 2, a day the administration called "Liberation Day." After some extremely volatile market action, stocks have since stabilized and gone on to challenge new all-time highs. Technology stocks have helped lead the charge. Palantir Technologies (NASDAQ: PLTR) surged 69% since the announcement, followed by Reddit (NYSE: RDDT) at nearly 50% and Netflix (NASDAQ: NFLX) at 36%. It's only natural to wonder whether stocks can sustain such impressive momentum. Three contributing analysts from The Motley Fool tackled these leading technology names one by one to find out. Here is whether you should still buy these tech winners now. Investors should weigh the valuation of this stock versus its growth potential Will Healy (Palantir Technologies): Given the power of its Artificial Intelligence Platform (AIP), it may not surprise active tech investors that Palantir rose 69% since April 2. That gain occurred as the power of its technology became better known to investors, and indeed, one does not have to look far to find AIP's success stories. One insurer reduced an underwriting workflow from two weeks to three hours, while a telecom company utilized it to save money by accelerating the process of decommissioning outdated technologies. Palantir's financial results also seem to reflect its clients' successes. The company reported 39% yearly revenue growth in the first quarter of 2025, and its Q1 net income increased by 105% over the same period to more than $214 million. Unfortunately, even with that gain, the company's financials may also indicate its stock is too expensive in the near term. Palantir's trailing P/E ratio of just over 600 may give investors pause. Also, the forward P/E ratio of more than 230 confirms that the trailing earnings multiple is not an anomaly. The forward one-year P/E ratio, which measures the earnings multiple against next year's estimated earnings, is approximately 185, indicating that the current price already reflects its anticipated earnings gains years into the future. Whether that valuation makes Palantir stock a "bubble" is a matter of debate. Bubbles are typically not apparent until after the fact, and one could argue that the power of Palantir's technology justifies the stock's valuation. Nonetheless, the chances of it being a bubble are high enough that investors should probably refrain from adding shares. More importantly, investing is a personal endeavor. If such valuations keep you awake at night, moving your money to lower-cost investments may be a wise decision. Shares of Reddit advanced by more than 300% since its debut in March 2024 Jake Lerch (Reddit): As of this writing, shares of Reddit have soared by nearly 50% since April 2. That's an excellent run;however, shares have performed even better when viewed on a longer time scale. Since Reddit stock debuted via an initial public offering (IPO) on March 21, 2024, it advanced by more than 300%. So, what's behind this big move? In short, it's down to Reddit's combination of growth and its role within the artificial intelligence (AI) ecosystem. Let's start with its growth. After years of existence as a privately held company, Reddit's debut on the stock market brought about a change in its business company increased its efforts to grow its user base, lure advertisers, and increase its revenue. In its most recent earnings report (for the three months ended March 31, 2025), Reddit reported 108 million daily average users (DAUs), up 31% from a year earlier. While those figures are impressive, Reddit still has plenty of room to grow. Meta Platforms, for example, boasts over 3.4 billion DAUs. As Reddit scales its user base, revenue -- specifically advertising revenue -- should scale along with company reported $392 million in revenue for the first quarter, up 61% year over year. Yet, there is a second factor that has analysts and investors excited about Reddit. It is an under-the-radar AI stock. Here's why. One of Reddit's most valuable assets is the endless stream of content that its user base produces minute by minute. That content is pure gold to AI developers, who are eager to feed it to their AI models, whether the content is scholarly articles on particle physics, silly cat memes, or anything in between. In short, the more data an AI model has access to, the better its output will be. In turn, Reddit could strike deals to license its content to AI companies. It already has one such deal in place with Alphabet, but additional -- and more lucrative -- deals could follow. In summary, Reddit's stock is once again investors would be wise to consider owning shares of Reddit now and for years to come. Netflix has matured, but the stock still has more to give investors Justin Pope (Netflix): One stock that continually catches my eye is Netflix, the world's leading streaming service. The company's journey to the top of the streaming mountain has yielded impressive investment returns; the stock has risen by over 104,000% since 2022. And yet it continues to deliver for shareholders, including roughly 36% returns since Trump's "Liberation Day" announcement three months ago. Netflix is a different business than it once was. Not only did it transition from disc rentals to a digital platform, but it also invested billions of dollars in developing a catalog of original content, thereby eliminating the need to license shows and movies from its competitors. Today, that strategy is paying massive dividends. Netflix's profit margins have soared over the past decade, since its revenue growth began overtaking the company's content budget: NFLX Profit Margin data by YCharts Netflix is a massive company today, worth a whopping $548 billion. Such a large stock won't replicate those prolific past returns. Nevertheless, the company still has room to grow. Its paid subscriber count increased by over 15% year over year in Q4 2024, ending the year with more than 301 million paid subscribers. Analysts estimate that Netflix will grow its earnings by an average of almost 22% annually over the next three to five years. The stock isn't a bargain, now trading at 51 times 2025 earnings estimates, but it's a reasonable entry point for investors looking to buy, hold, and let Netflix continue to do its thing. Should you invest $1,000 in Palantir Technologies right now? Before you buy stock in Palantir Technologies, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Palantir Technologies wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $671,477!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,010,880!* Now, it's worth noting Stock Advisor 's total average return is1,047% — a market-crushing outperformance compared to180%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 7, 2025 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Jake Lerch has positions in Alphabet and Reddit. Justin Pope has no position in any of the stocks mentioned. Will Healy has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Meta Platforms, Netflix, and Palantir Technologies. The Motley Fool has a disclosure policy.
Globe and Mail
9 hours ago
- Globe and Mail
This Stock Has Increased 4,720%: Here's Why It's Still a Buy
Key Points Johnson & Johnson has delivered excellent returns to its long-term shareholders. One key factor behind the company's success is its ability to innovate. Despite various challenges, the drugmaker's strong business and dividend program make it attractive. 10 stocks we like better than Johnson & Johnson › Time is one of investors' greatest allies. With enough patience, even a relatively small sum of money invested in an excellent company can yield substantial returns, especially when dividends are reinvested. Case in point: Shares of Johnson & Johnson (NYSE: JNJ), one of the world's largest healthcare companies, have increased by 4,720% over the past few decades. The stock may have garnered more headlines due to various legal challenges over the past few years, but it remains an excellent long-term option, especially for income seekers. Here's the rundown. JNJ Total Return Level data by YCharts. The secret to Johnson & Johnson's success Medical care is always in high demand: So long as we get sick, this is one sector that will never disappear. However, specific companies in the industry can cease to exist. One reason they do is their failure to innovate. Even if healthcare never sleeps, it does evolve, and it's critical for companies aiming to be successful over the long run to keep pace with that evolution. Johnson & Johnson has done that admirably over the years. Consider its pharmaceutical segment. Last year, the drugmaker had more than 10 medicines that each generated over $1 billion in sales. In 2014, Johnson & Johnson also had more than 10 drugs that were blockbusters. Some of them were the same as last year's, but some weren't -- because the company has developed and marketed newer therapies over the past decade that have replaced older ones. In a decade, Johnson & Johnson's lineup of approved products will look different yet again. However, one thing won't change: It will still have many drugs that reach the $1 billion annual sales mark. J&J has more than 100 programs in its pipeline. True, many of those are for therapies seeking label expansions. But the company also has some brand-new clinical compounds, at least some of which will make it through the rigorous clinical-trial testing phases and go on to be massively successful. And we haven't even mentioned Johnson & Johnson's medtech business, where it markets a range of medical devices across several major therapeutic areas. Its operations are well diversified in the healthcare sector. That, combined with the company's innovative qualities, makes it likely to remain a leader in healthcare for a long time. Johnson & Johnson can overcome its challenges Johnson & Johnson has encountered some headwinds in recent years. It's facing thousands of lawsuits from plaintiffs who allege that its talc-based products gave them cancer. The company has attempted to resolve these issues through various settlement proposals, but so far, to no avail. These legal battles are worth monitoring, but the stock is attractive despite them. The company is not at serious risk of bankruptcy. That's why it still has an AAA credit rating, which is even higher than that of the U.S. government. Several judges have shot down its attempts to settle these lawsuits via a bankruptcy maneuver through a subsidiary, partly because of the company's underlying financial strength. While it's hard to know how this saga will end, my view is that Johnson & Johnson will continue performing well long after the dust settles. Here's another potential challenge Johnson & Johnson faces: Some of its therapies will generate significantly less revenue in the next few years, due to either patent cliffs or Medicare price negotiations in the U.S. Here again, J&J can handle this threat. The company's innovative ability is the best way to overcome this problem. The healthcare specialist can also count on its medtech unit to pick up some of the slack. One attractive opportunity in this segment is within the robotic-assisted surgery (RAS) niche. Johnson & Johnson is developing its Ottava RAS system, which should grant it plenty of long-term revenue opportunities and help it navigate patent cliffs. Of course, we can't talk about J&J without mentioning its dividend. The company has increased its payouts for 62 consecutive years, which makes it a Dividend King. This streak highlights, once again, how strong Johnson & Johnson's business is -- most corporations don't even last six decades, let alone pay dividends for that long. The stock is an excellent pick for long-term, income-oriented investors. Should you invest $1,000 in Johnson & Johnson right now? Before you buy stock in Johnson & Johnson, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Johnson & Johnson wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $671,477!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,010,880!* Now, it's worth noting Stock Advisor 's total average return is1,047% — a market-crushing outperformance compared to180%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 7, 2025
