10 Stocks Warren Buffett and His Successor, Greg Abel, Plan to Hold Forever

Warren Buffett retired as Berkshire Hathaway CEO on Dec. 31, with Greg Abel taking over and signaling that Apple, Coca-Cola, American Express, and Moody’s are expected to remain long-term holdings; Buffett had identified eight stocks as “indefinite” holdings, while Abel named four companies expected to compound over decades. The article highlights Berkshire’s long-standing positions and Japan’s five trading houses, citing their comparatively attractive valuations and dividends and buybacks. Apple trades at nearly 40 times earnings, versus 10–15 times when Buffett began buying it in 2016, and Buffett had reduced Berkshire’s Apple stake by 75% over the nine quarters before retiring.

Analysis

The key signal is governance continuity, not a fresh buy signal: naming a holding “indefinite” describes intent, but does not establish that Berkshire will add at today’s price. Treat the letters as modest support for confidence in Greg Abel’s stewardship, not a floor under any constituent. The prior reduction in Apple exposure is a useful counterweight to the latest reassurance; position sizing can change even when the thesis remains intact.

The article’s yield-on-cost framing for Coca-Cola, American Express and Moody’s is economically backward-looking. For Berkshire, the relevant hurdle is each stake’s expected return on current market value versus the return available from buybacks, acquisitions or other securities. Large embedded gains may create tax friction, but do not make a holding intrinsically attractive. Verify current stake sizes and any subsequent 13F changes before trading on the “forever” label.

Over 1–3 months, the catalyst is evidence of Abel’s actual capital allocation—filings, buybacks, or a material deployment of Berkshire’s cash—not another statement of continuity. Over 6–18 months, Japan’s trading houses remain exposed to yen moves, commodity cycles and local capital-return execution; the theme is not a low-risk proxy for value. Apple’s premium valuation makes the hold signal particularly vulnerable to earnings or multiple disappointment. The contrarian point: investors may overvalue loyalty and underweight opportunity cost. No standalone trade follows from this article absent price, valuation and portfolio-sizing data.

Key Decisions for Investors

• Do not chase AAPL on the retention language. Keep exposure valuation-disciplined; reassess on earnings/guidance and verify Berkshire’s disclosed position size. A material further reduction or weaker-than-expected operating outlook would falsify the continuity-support thesis.
• Treat BRK.A as a watchlist expression of the management-transition view, not an automatic buy. Consider entry only after reviewing Berkshire’s cash deployment, repurchase activity and reported portfolio changes; the thesis weakens if capital allocation or operating results disappoint.
• Do not use Berkshire’s yield-on-cost figures as a reason to buy KO, AXP or MCO. Compare prospective returns from current prices with alternatives, and monitor underlying operating performance and Berkshire stake disclosures for evidence that the “indefinite” label is changing.
• For the Japan trading-house theme, require confirmation from updated holdings and company-level earnings, capital-return plans and currency exposure before sizing. A stronger yen or weaker commodity/earnings outlook could undermine the case; the article alone does not justify a position.