Warren Buffett’s Berkshire Hathaway bought 13 stocks in the first quarter of 2023. Six of these stocks are considered “forever” holdings by Buffett. Among the new additions are Constellation Brands, Sirius XM Holdings, Pool Corp., Occidental Petroleum, Domino’s Pizza, and HEICO Class A shares.
Buffett also increased Berkshire’s stakes in several Japanese trading companies known as “sogo shosha.”
In his 2023 annual letter, Buffett named American Express, Coca-Cola, Occidental Petroleum, and the five Japanese trading companies as forever holdings. He has held American Express and Coca-Cola since 1988 and 1991. Buffett’s strategy includes investing in companies with monopoly-like status.
Sirius XM dominates the satellite-radio market, while VeriSign controls the registration of .com and .net domain names. Buffett’s investing lieutenants, Todd Combs and Ted Weschler, are playing a bigger role in Berkshire’s portfolio. They likely drove recent investments in Pool Corp., Domino’s Pizza, and HEICO’s Class A shares.
Constellation Brands also saw a significant investment from Berkshire. The reasoning behind this purchase remains unclear as Buffett prepares to step down by the end of 2025. Coca-Cola has been a steady performer for Berkshire Hathaway.
Buffett’s new stock additions revealed
The company reported strong results in 2024 and expects 5% to 6% organic revenue growth in 2025. Coca-Cola’s success comes from its diverse beverage lineup.
The company has raised its dividend for 63 straight years and offers a 2.8% yield. Coca-Cola is a reliable dividend stock for passive income. It has outperformed the S&P 500 and shows resilience in challenging times.
Visa is another Buffett-approved stock worth buying. It operates the world’s largest card network and collects fees on every transaction. Visa faces some competition but remains dominant.
The company has invested in new payment technologies like crypto and stablecoins. In its fiscal 2025 second-quarter report, Visa reaffirmed its guidance. Its fee-based model provides a hedge against inflation.
Coca-Cola and Visa represent Buffett’s investment philosophy. They have strong fundamentals, competitive moats, and perform well in various economic conditions.
