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7 Warren Buffett Stocks to Buy and Hold for the Next Decade

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  • The following Warren Buffet stocks can be very profitable if you are patient:
  • RH (RH): The company is making a comeback in its financials and now has robust growth rates.
  • Apple Inc. (AAPL): The world's largest company is also Warren Buffet's largest holding as it still has great prospects.
  • Charter Communications (CHTR): The company is growing faster than its competitors and still has much more room to grow.
  • Verizon Communications (VZ): VZ is a great asset to hold if you're looking for retirement stocks.
  • Liberty Media Formula One Series C (FWONK): It might be a good idea to get a stake in Formula One, a sport steadily rising in popularity.
  • The Coca-Cola Company (KO): The company seems to be making a comeback and the brand is too popular to not deliver a profit in the long run.
  • Itochu (ITOCF): Robust financials and regular dividend payments with a promised payout ratio of 30% by 2024 make ITOCF a great stock to hold.
Source: PX Media / Shutterstock

Whenever the recession alarm bells start ringing, investors become pickier about the stocks they invest in. The same holds true today, as evident by the recent downturn. The post-pandemic boom saw almost every company go on an uptrend, no matter their intrinsic value. Of course, this defied traditional finance and people started to believe in a new era for the economy.

Unfortunately, the recent inflation spike has proved it all wrong again. I believe that the post-pandemic boom was simply a prelude to a recession we could be facing. The perspective of almost all analysts, including the Federal Reserve (Fed), has been becoming bearish for the past few months. Thus, if you wish to keep your money in the market, it is best to stick with solid companies. You could do this by following Warren Buffett, who believes value investing could be a good idea.

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Of course, copying someone's investment isn't foolproof. One cannot match Buffett's wealth and influence. Additionally, the difference between a regular investor's risk/reward ratio and tolerance is vastly different. However, following Buffett is a reliable choice if you are a beginner looking to accumulate stocks for long-term gains. Thus, I have found the following seven Warren Buffett stocks to buy and hold for the next decade:

Ticker Company Price RH RH $235.84 AAPL Apple Inc. $137.64 CHTR Charter Communications, Inc. $456.34 VZ Verizon Communications Inc. $50.40 FWONK Liberty Media Formula One Series C $62.80 KO The Coca-Cola Company $62.70 ITOCF Itochu Corporation $26.71

Warren Buffett Stocks: RH (RH)

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RH (NYSE:RH), formerly known as Restoration Hardware, is a home furnishing company making a comeback in its financials. The stock ballooned after the Covid-19 pandemic and witnessed a 200% increase in value compared to pre-pandemic figures.

However, the recent stock market downturn has hit RH quite hard as it witnessed a 65% decline since August 2021. As a result, the stock is currently valued just 4% above its pre-pandemic price.

However, RH reported a 190.21% quarterly year-over-year (YOY) jump in diluted earnings per share (EPS) to $12.16, while it outperformed EPS estimates with a 45% surprise. Moreover, the net income increased by 53.62% and revenue increased 11.21% YOY.

Apple Inc. (AAPL)

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Apple Inc. (NASDAQ:AAPL) is Warren Buffett's favorite stock. As of first quarter (Q1) 2022, Berkshire Hathaway (NYSE:BRK-A,BRK-B) has committed 42.79% of its portfolio to this stock. That makes sense as Apple is currently the world's largest company, with stable revenues and net income.

Although Apple is a highly profitable company with a sound future, I believe it is better to wait until Q2 before investing a meaningful amount. Apple's YOY quarterly revenue and net income growth have been increasing at lower percentages each year and could go negative next quarter. If the company presents a disappointing Q2 earnings report, AAPL stock could face a harsh selloff.

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Buffett has been building his position in Apple since 2016 and can afford to sit through some turbulence. However, this is a bear market and newer investors should wait for a lower base to invest a significant amount.

Warren Buffett Stocks: Charter Communications (CHTR)

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Charter Communications (NASDAQ:CHTR) is a telecommunications and mass media company. The company has more than 32 million customers in 41 U.S states, leaving it with plenty of room to grow. Unlike its larger competitors, Charter Communications has continued on a stable uptrend in its finances. In the latest quarter, the company reported a YOY 49% growth in net income and 5.41% growth in revenue.

In addition, CHTR stock is down 44.5% since its all-time high, well below its pre-pandemic prices. If Charter Communications continues to deliver stable and robust finances, the stock could be highly profitable in the future.

Verizon Communications (VZ)

Source: Shutterstock

Verizon Communications (NYSE:VZ) is another communications stock in Berkshire Hathaway's portfolio. Although VZ stock isn't the best performing, the company pays regular dividends and is relatively low risk. Verizon could be a good investment if you want a retirement stock.

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However, the stock is unlikely to deliver any meaningful gains in the short-term since Verizon's finances are declining in line with the broader economy. The YOY net income decline of 12.68% this quarter might also drive some investors away. Nonetheless, VZ stock is still something you should consider diversifying into for the long run.

Warren Buffett Stocks: Liberty Media Formula One Series C (FWONK)

Source: Michael Cola / Shutterstock

Liberty Media Formula One Series C (NASDAQ:FWONK) is a group of companies promoting racing for the open-wheel single-seater sport called Formula One. The sport is steadily gaining popularity and the 2022 Formula One World Championship is currently ongoing.

FWONK stock is a good buy as the popularity of Formula One has kept growing. The stock could be highly profitable if the sport's popularity continues to grow for the next decade.

Coca-Cola (KO)

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The Coca-Cola Company's (NYSE:KO) largest holder is currently Warren Buffett. The company's finances were in decline for a long time after reaching a high in late 2012. However, Coca-Cola has now reversed its decline due to higher post-pandemic demand.

The company reported robust growth in the latest quarter, with net income and revenue YOY growth rates of 23.88% and 16.31%, respectively. Nonetheless, I would recommend against making significant investments in KO stock. Coca-Cola's low earnings per share and a high price-to-earnings ratio of 25.82 makes it relatively overvalued. Thus, I would suggest using KO as a diversification asset.

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Of course, if you wish to hold it for a long time, KO stock will very likely remain a profitable asset. However, waiting now could be an excellent strategy to avoid some short-term losses.

Warren Buffett Stocks: Itochu Corporation (ITOCF)

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Itochu Corporation (OTCMKTS:ITOCF) is a company that trades a wide range of products. It is the largest of such companies in Japan. The stock has been on a stable, long-term uptrend due to the company's diversification into many industries.

In the latest fiscal year, which is April through March in Japan, the company reported record earnings after a strong bounce from the pandemic. Moreover, the company has continued to pay dividends, increasing them incrementally for the past nine years. The company has also reasserted its commitment to a payout ratio of 30% by 2024.

In addition, The price-to-earnings ratio is also low at just 6.59. With that in mind, I believe Itochu is an excellent stock to hold for the long-term.

On the date of publication, Omor Ibne Ehsan did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

The post 7 Warren Buffett Stocks to Buy and Hold for the Next Decade appeared first on InvestorPlace.

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