4 Warren Buffett Stocks to Buy and Never Sell

Warren Buffett, CEO of Berkshire Hathaway attends the annual Berkshire shareholders meeting in Omaha, Nebraska on May 3, 2019. JOHANNES EISELE/AFP via Getty Images

This story originally appeared on StockNews

Legendary investor Warren Buffett’s holding company Berkshire Hathaway has outperformed the broader market over the past year. His investment portfolio has been a guide for several long-term investors for decades. Amid a highly uncertain market and economic backdrop, Warren Buffett holdings Procter & Gamble (PG), AbbVie (ABBV), Biogen (BIIB), and Kroger (KR) might be ideal investments for the next ten years.

Warren Buffett, also known as the “Oracle of Omaha,” is one of the most influential and successful investors of all time, with a net worth of $104.10 billion. He is the chairman and CEO of a diversified holding company, Berkshire Hathaway (BRK.A) (BRK.B). He primarily follows a long-term value investing strategy.

Buffett primarily invests in ably managed businesses with sound dividend records and pricing power. He has accumulated a fortune through his successful investment strategy, which has guided investors for decades.

Buffett’s Berkshire Hathaway has significantly outperformed the broader market. Over the past six months, BRK.B has returned 12.2 percent, outpacing the broader S&P 500 index’s 3.2 percent gains. Also, the stock has gained 2.8 percent over the past year versus the S&P 500’s 17.4 percent decline.

Despite the inflation showing signs of cooling, the Fed indicated to keep raising interest rates and predicted the terminal rate to reach as high as 5.1 percent next year, higher than the September projection of 4.6 percent. The Fed’s hawkish stance sparked recession fears recently. With the markets expected to witness heightened volatility in the upcoming months, investors should consider top Buffett’s holdings for solid returns over the long run.

To that end, it could be wise to buy fundamentally sound Warren Buffett stocks The Procter & Gamble Company (PG), AbbVie Inc. (ABBV), Biogen Inc. (BIIB), and The Kroger Co. (KR) and hold them into the next decade.

The Procter & Gamble Company (PG)

PG provides branded consumer packaged goods worldwide. The company operates through five segments: Beauty; Grooming; Health Care; Fabric & Home Care; and Baby, Feminine & Family Care. It sells its products primarily through mass merchandisers, grocery stores, drug stores, department stores, wholesalers, pharmacies, electronics stores, and professional channels.

Buffett’s Berkshire Hathaway held nearly 315,400 shares of PG as of March 31, 2022. The stock represents about 0.1 percent of Berkshire’s portfolio.

For the fiscal 2023 first quarter ended September 30, 2022, PG’s healthcare sales grew 3 percent year-over-year to $2.76 billion, while its net sales increased 1 percent year-over-year to $20.61 billion. As of September 30, 2022, the company’s current assets stood at $22.52 billion, compared to $21.65 billion as of June 30, 2022.

PG has raised its dividends for 66 consecutive years. It pays a $3.65 per share dividend annually, which translates to a 2.40 percent yield on the current price. Its four-year average dividend yield is 2.46 percent. Its dividend payments have grown at CAGRs of 6.9 percent and 5.7 percent over the past three and five years, respectively.

Analysts expect PG’s EPS and revenue for the fiscal year ending June 2024 to increase 7.3 percent and 3.6 percent year-over-year to $6.26 and $82.79 billion, respectively. Furthermore, the company has surpassed its consensus revenue in each of the trailing four quarters. The stock has gained 9.9 percent over the past six months to close the last trading session at $152.19.