Buffett may have stepped aside, but his longest-held stocks are still doing exactly what long-term investors dream about: throwing off enormous cash while compounding wealth for decades.
Berkshire's Coke, AmEx and Moody's holdings
That is the real headline inside Berkshire Hathaway’s new era under Greg Abel. Coca-Cola, American Express and Moody’s — the three stocks Warren Buffett has owned the longest — now average a 3,757% gain and are producing almost $1.53 billion a year in dividend income for Berkshire. For investors, that is a powerful reminder that time in the market, not constant trading, is what turns good businesses into historic wealth creators.
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Coca-Cola is the workhorse of the trio. Berkshire has held the beverage giant continuously since 1988, and the stake has returned about 2,797% even before counting dividends. More important for income investors, Coke’s annual payout has increased for 64 straight years. Berkshire’s yield on cost is now better than 65%, which means the original $1.3 billion investment is effectively being paid back through dividends again and again.
That matters because Coke is not a flashy growth story — it is a durable one. Its global brand, distribution muscle and presence in nearly every country give it the kind of pricing power and geographic diversification that long-term portfolios are built on. Even in a slower-growth world, businesses that can steadily raise prices and dividends have a habit of rewarding patient shareholders.
American Express is a different kind of compounding machine. Berkshire has owned it since 1991, and the stock is up about 3,659% from a cost basis around $8.49 a share. Amex generates revenue from both sides of the transaction: merchant fees from spending volume and fees and interest income from cardholders. That gives it a business model with more than one engine, which is exactly why Buffett has been willing to hold it through multiple cycles.
Moody’s may be the smallest position, but it has been the biggest winner on price alone, climbing more than 4,800% since its spinoff in 2000. The ratings firm sits at the center of global credit markets, where demand for reliable risk assessment rarely goes out of style. Its growing analytics business adds another layer of recurring revenue, making it a quietly resilient compounder rather than a one-note ratings shop.
The broader lesson for investors is simple: Berkshire’s biggest success stories have not come from trying to outsmart the market every quarter. They came from owning exceptional businesses for years, letting earnings rise, letting dividends snowball and resisting the urge to meddle. That approach still matters now that Abel is in charge, because the portfolio may change, but the compounding math does not.
There are risks, of course. Coca-Cola faces currency and consumer shifts, American Express depends on healthy spending and credit quality, and Moody’s is tied to capital markets activity. Yet all three have proved remarkably durable through recessions, inflation cycles and changing leadership at Berkshire itself. For long-term investors, that durability is the point.
Buffett’s legacy here is not just a giant gain on paper. It is a lesson in how great companies, held long enough, can become reliable income engines and wealth machines at the same time. That is why these three Berkshire staples remain worth watching — and why patient investors should still treat them as models for a buy-and-hold portfolio.
| Entity | Gains | Losses |
|---|---|---|
| Berkshire Hathaway | ▲Massive dividend stream | ▼Little need to trade |
| Coca-Cola | ▲Global brand power | ▼Currency and volume risk |
| American Express | ▲Dual revenue engines | ▼Credit-cycle pressure |
| Moody’s | ▲Recurring analytics demand | ▼Deal and issuance slowdowns |
