Coca‑Cola and American Express named as Buffett’s top long‑term picks

Warren Buffett’s long‑term investing philosophy stresses owning high‑quality businesses for decades. Two stocks frequently cited as exemplars are Coca‑Cola and American Express.

Coca‑Cola, held by Berkshire Hathaway since 1988 with 400 million shares, is praised for its strong economic moat, global brand, and unique concentrate‑to‑bottler model that limits capital needs. The company has raised its dividend for 64 years, earning a current yield of about 2.6 %, and can pass rising input costs to consumers without losing sales volume.

American Express operates a closed‑loop payment network that serves affluent customers who pay annual fees for premium benefits. The model generates fees from merchants, interest, and card‑holder charges, delivering resilience during economic downturns. In 2024 the company posted record revenue of $72 billion, up 10 %, and increased its dividend by 16 % to a yield near 1 %. Both companies are presented as reliable holdings for investors with a 20‑year horizon.