Warren Buffett's Legacy: 2 Buffett Stocks for Long-Term Holders

Warren Buffett is retiring as CEO of Berkshire Hathaway, leaving behind a portfolio with fundamentally sound businesses. Two Buffett stocks to buy and hold for the long haul are Apple and American Express. Apple's business is doing well despite its struggling stock price, with net sales up 5% YoY. American Express has a highly regarded brand and premium products, such as the Platinum card, which is seen as a status symbol. Both companies are expected to be steady performers for decades.

Warren Buffett's retirement as CEO of Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) marks the end of an era for the legendary investor. His track record is unparalleled, with Berkshire delivering an overall return of 5,502,284% from 1965 through 2024 [1]. As he steps down, investors are left with a portfolio of fundamentally sound businesses. Among these, two stand out as strong long-term investment options: Apple (NASDAQ: AAPL) and American Express (NYSE: AXP).

Apple, Berkshire's largest holding, currently accounts for 21.7% of its portfolio [1]. Despite a double-digit drop in its share price this year, Apple's business remains solid. Net sales were up 5% year over year to $95.4 billion in its second fiscal quarter, which ended on March 29, 2025 [1]. Services, in particular, had a sizable jump, with net sales increasing by 12%. Although Apple hasn't been at the forefront of AI innovations, it has been exploring partnerships with OpenAI and Anthropic and made significant AI announcements at its Worldwide Developers Conference [1]. The recent dip in Apple's stock price has made it more affordable, trading at a price-to-earnings (P/E) ratio of 33.

American Express, Berkshire's second-largest holding, is a bank and payments company that has seen impressive growth. It has a highly regarded brand and premium products, such as the Platinum card, which is seen as a status symbol. American Express caters to wealthy clients who spend more and are less likely to fall behind on their credit card bills [1]. The company's delinquency rate is significantly lower than the industry average, at 0.78% compared to 1.34% [1]. Revenue has nearly doubled over the last five years, and its share price is up 219% [1]. American Express also has a key advantage over its competitors in processing fees, as it both issues cards and operates as a payment network [1].

Both Apple and American Express are expected to be steady performers for decades. They are companies that investors can add to their portfolios and trust that they will still be going strong in five years, 10 years, and beyond [1].

References:
[1] https://finance.yahoo.com/news/2-top-buffett-stocks-buy-123000114.html