These 3 Stocks Could Still Be Winning Investments When You Retire. Warren Buffett Would Likely Agree, Too.

The article highlights three long-term dividend-and-compounder names: Berkshire Hathaway, Otis Worldwide, and WM. Berkshire is in a leadership transition with Greg Abel now CEO, while Otis is posting 3% revenue growth, 11% adjusted EPS growth, and a 2.2% dividend yield with a 4.8% total shareholder yield. WM remains a steady cash-generating waste and recycling leader, with a 1.45% dividend yield and 10% average annual dividend growth over five years, though it trades at a modest premium to its historical forward P/E.

Analysis

The common thread is not “quality” in the abstract; it is inflation-resistant cash flow with low reinvestment intensity and high capital-return optionality. That mix matters most in a slower-growth, higher-rate regime because businesses that can self-fund dividends and buybacks without leaning on cheap debt will keep compounding while more cyclical franchises get forced into capex triage. Among the three, WM likely has the strongest pricing power through municipal contracts and route density, while OTIS has the best embedded annuity stream via installed-base service revenue; BRK.B is more of a capital allocator with a hidden bond proxy in its operating mix and equity portfolio.

Second-order winners are the suppliers and peers that can match these firms’ capital discipline, not the firms that simply grow fastest. WM’s ability to pass through price and consolidate routes pressures smaller regional haulers that lack scale and disposal assets; over 12-24 months that can create an acquisition wave or margin compression in fragmented waste names. OTIS benefits from aging vertical infrastructure and retrofit demand, which is a quiet tailwind for commercial real estate owners trying to extend asset life rather than build new, while also insulating it from AI-driven demand shocks that hit office-tech more directly.

The main risk is consensus complacency around “forever businesses”: if rates stay elevated, the market will start paying less for dividend growth and more for immediate free cash flow, which can compress multiples even for durable names. BRK.B is the most exposed to this because its embedded equity book and repurchase cadence are tied to valuation discipline; if the market rerates cyclicals or financials, Berkshire’s relative appeal fades. WM’s multiple already prices in a lot of durability, so upside likely needs either a multiple expansion catalyst or faster-than-expected volume/capacity pricing; otherwise it can underperform despite solid fundamentals.

From a trading perspective, the best setup is to own the annuity-like compounders on weakness rather than chase them after a defensively rotated bid. The higher-conviction expression is OTIS vs. a lower-quality industrial/REIT basket, since service mix and buybacks create a cleaner earnings stream. BRK.B looks more like a tactical hold than a new buy at current levels unless the market sells off enough to widen the discount to intrinsic value; WM is the least attractive entry on valuation, but still a good long if paired against a more rate-sensitive small-cap waste operator.

Key Decisions for Investors

• Go long OTIS on a 3-6 month horizon on any 5-7% pullback; target 12-15% upside as service revenue and buybacks continue to re-rate the stock versus slower-growth industrials.
• Pair trade: long WM / short a regional waste hauler or waste-services ETF proxy for 6-12 months; thesis is route-density and contract-pricing outperformance, with downside if municipal pricing weakens.
• Keep BRK.B as a market-neutral quality anchor, but wait for a better entry near a 10% pullback or a broader risk-off tape; the risk/reward is less attractive at a full valuation because the buyback support matters less when the multiple is already respected.
• If owning one name outright, prefer OTIS over WM for fresh capital: similar durability, better valuation support, and a cleaner recurring-revenue mix; risk is slower-than-expected new equipment orders.
• Avoid chasing WM after extended strength; use it as a defensive hedge only if rates fall and the market re-prices staples/quality, since most of the long-term durability is already in the multiple.