5 Stocks to Buy and Hold for Decades According to Warren Buffett

In this article, we discuss 5 stocks to buy and hold for decades according to Warren Buffett. If you want our detailed discussion of Buffett’s investment philosophy, click 10 Stocks to Buy and Hold for Decades According to Warren Buffett.

5. Johnson & Johnson (NYSE:JNJ)

Number of Hedge Fund Holders: 83

Johnson & Johnson (NYSE:JNJ) is a multinational company operating in the consumer health, pharmaceuticals, and medical devices sectors. Warren Buffett has maintained a position in Johnson & Johnson (NYSE:JNJ) for more than a decade, and in Q4 2021, he held 327,100 shares of the company, worth close to $56 million. 

On March 16, Bernstein analyst Lee Hambright downgraded Johnson & Johnson (NYSE:JNJ) to Market Perform from Outperform with a price target of $183, up from $180. The analyst stated that over the next several years, Johnson & Johnson (NYSE:JNJ)’s pharma business will face “an uphill battle”, given several major franchises face loss-of-exclusivity challenges. 

A total of 83 hedge funds were bullish on ​​Johnson & Johnson (NYSE:JNJ) in Q4 2021, compared to 88 funds in the previous quarter. Fundsmith LLP is the leading shareholder of the company, with 7.2 million shares worth $1.2 billion. 

Distillate Capital mentioned Johnson & Johnson (NYSE:JNJ) in its Q2 2021 investor letter. Here is what the firm has to say:

“The largest additions in the rebalance, Johnson & Johnson (NYSE:JNJ) was around 50 and 40 basis points incrementally. J&J underperformed in the quarter while its normalized free cash flows held steady and so its position size was topped off to match the stable cash flows.”