5 Best Long-Term Stocks To Buy According To Warren Buffett

In this article, we will discuss the 5 best long-term stocks to buy according to Warren Buffett. If you want to explore similar stocks, you can also take a look at 12 Best Long-Term Stocks To Buy According To Warren Buffett.

5. The Procter & Gamble Company (NYSE:PG)

Number of Hedge Fund Holders: 74

The Procter & Gamble Company (NYSE:PG) is a multinational consumer goods corporation headquartered in Cincinnati, Ohio. Founded in 1837 by William Procter and James Gamble, the company offers a wide range of branded consumer packaged goods globally, with operations across multiple segments, including Beauty, Grooming, Health Care, Fabric & Home Care, and Baby, Feminine & Family Care.

As of October 26, The Procter & Gamble Company (NYSE: PG) provides a quarterly dividend of $0.9407 per share, resulting in a yield of 2.51%. In fiscal Q1 2024, the company distributed $2.3 billion to shareholders in dividends. One of the best long-term stock to invest in, The Procter & Gamble Company (NYSE:PG) has a remarkable track record of increasing its dividend for 67 consecutive years.

In the second quarter of 2023, Berkshire Hathaway maintained its position in The Procter & Gamble Company (NYSE:PG) and held shares valued at over $47.8 million in the company. These holdings accounted for approximately 0.01% of Warren Buffett’s investment portfolio.

According to Insider Monkey’s second-quarter database, 74 hedge funds expressed a bullish sentiment towards The Procter & Gamble Company (NYSE:PG), compared to 75 funds in the previous quarter. Terry Smith’s Fundsmith LLP is the company’s largest stakeholder, holding 4.84 million shares valued at $735.8 million.

4. Johnson & Johnson (NYSE:JNJ)

Number of Hedge Fund Holders: 88

Johnson & Johnson (NYSE:JNJ) is an American multinational healthcare company that operates in various sectors of the healthcare industry. As of October 26, Johnson & Johnson (NYSE:JNJ) provides a quarterly dividend of $1.19 per share, with a dividend yield of 3.14%. The company has a commendable track record of dividend growth, having increased its dividend consistently for more than 62 years.

Warren Buffett initiated his position in Johnson & Johnson (NYSE:JNJ) in 2010 by acquiring 42.62 million shares. Over the decade from 2012 to 2022, the stock exhibited an impressive gain of 186%, which translated into significant returns for the billionaire investor. As of the second quarter of 2023, Berkshire Hathaway held 327,100 shares in Johnson & Johnson (NYSE:JNJ), with a total value exceeding $54.14 million.

In the second quarter of 2023, the number of hedge funds holding positions in Johnson & Johnson (NYSE:JNJ) increased to 88, up from 86 in the previous quarter. The total value of these hedge funds’ combined stakes in Johnson & Johnson surpasses $4.1 billion. Bridgewater Associates, led by Ray Dalio, is the primary hedge fund investor in Johnson & Johnson (NYSE: JNJ), holding a significant stake valued at approximately $526.58 million.

3. Apple Inc. (NASDAQ:AAPL)

Number of Hedge Fund Holders: 135

Both hedge funds and Wall Street analysts are in agreement regarding the long-term investment potential of Apple Inc. (NASDAQ:AAPL). Several factors contribute to this consensus, including Apple’s robust product portfolio, significant growth in services and software, and the company’s ongoing commitment to innovation and long-term strategic goals. Apple has been a favored investment of billionaire Warren Buffett for many years.

Apple Inc. (NASDAQ:AAPL) has increased its dividends for 11 consecutive years. In its most recent quarter, the company returned $24 billion to shareholders through a combination of dividends and share repurchases. As of October 26, the tech giant pays a quarterly dividend of $0.24 per share, with a dividend yield of 0.58%.

Our hedge fund data for the second quarter shows 135 hedge funds long Apple Inc. (NASDAQ:AAPL). Their total stake value was $194 billion. Holding 915.6 million shares in the company, Warren Buffett’s Berkshire Hathaway was the largest stakeholder in Apple Inc. (NASDAQ:AAPL) at the end of the second quarter.

2. Mastercard Incorporated (NYSE:MA)

Number of Hedge Fund Holders: 139

Mastercard Incorporated (NYSE:MA) is the second-largest payment-processing corporation worldwide. Headquartered in Purchase, New York, it offers a range of financial services, including credit and debit cards, as well as data analytics, settlements, payment deferrals, and other services. The company pays a quarterly dividend of $0.57 per share, and as of October 26, it had a dividend yield of 0.63%. With a track record of increasing dividends for 10 consecutive years, it is considered one of the best long-term stocks on our list.

Berkshire Hathaway began its investment in Mastercard Incorporated (NYSE:MA) in 2011. In the most recent quarter, the hedge fund held stakes in the company valued at over $1.5 billion. There were no changes to its position in the company during the quarter, and Mastercard represented 0.45% of the firm’s 13F portfolio.

JPMorgan’s Tien-Tsin Huang maintains an Overweight rating and a $496 price target on Mastercard Incorporated (NYSE:MA) shares as of October 9.

Mastercard Incorporated (NYSE:MA) was included in 139 hedge fund portfolios at the end of Q2 2023, as per Insider Monkey’s database. Among these hedge funds, Akre Capital Management was the company’s largest stakeholder in Q2.

1. Visa Inc. (NYSE:V)

Number of Hedge Fund Holders: 171

Visa Inc. (NYSE:V) is a multinational financial services corporation headquartered in San Francisco, California. It specializes in facilitating electronic funds transfers worldwide, mainly through Visa-branded credit cards, debit cards, and prepaid cards. As one of the most valuable companies globally, it currently offers a quarterly dividend of $0.45 per share, resulting in a dividend yield of 0.78% as of October 26.

According to Insider Monkey’s data as of the end of the second quarter of 2023, a total of 171 hedge funds held positions in Visa Inc. (NYSE:V), a slight decrease from the 173 in the previous quarter. The combined value of these stakes exceeds $24.9 billion. At the close of Q2 2023, Berkshire Hathaway owned roughly 8.3 million shares in Visa Inc. (NYSE:V), worth nearly $2 billion. The company accounted for 0.56% of the firm’s 13F portfolio.

Baron FinTech Fund made the following comment about Visa Inc. (NYSE:V) in its second quarter 2023 investor letter:

“We modestly trimmed Visa Inc. (NYSE:V), Mastercard Incorporated, and Accenture plc to manage the position sizes and raise capital to fund purchases elsewhere. These stocks remain full-sized positions and high-conviction ideas in the Fund.

Another fintech industry trend we’re seeing is a pickup in M&A activity, most notably in the payments sector. The year started with Nuvei’s $1.3 billion acquisition of Paya announced in January. In April, Network International received an initial takeover offer from a group of private equity firms, which was then topped by Brookfield Asset Management whose $2.8 billion offer was accepted by the Board in June. Following reports earlier this year of a bidding war between Visa Inc. and Mastercard Incorporated to acquire cloud-based issuer processor and core banking software provider Pismo, Visa announced its intention to acquire the Brazilian company for $1 billion in late June.”

You can also take a look at 11 Cheap Chinese Penny Stocks to Buy According to Hedge Funds and 13 Stocks to Buy with Exponential Growth.