7 Warren Buffet Stocks to Buy and Hold for the Next Decade

The reason investors should look for Warren Buffett stocks to buy and hold is that playing the long game is a stable route to success in the stock market.

Buffett has proven this over his long investing career. So much so that he has become synonymous with the buy-and-hold investing strategy. That strategy is highlighted in this list, including Warren Buffett stocks to buy and hold until 2032. 

Is there something inherently important about the year 2032? No, not really. It’s simply a decade in the future. Investors in these shares may very well end up hanging on to them beyond 2032. 

Johnson & Johnson (JNJ)

Although Wall Street isn’t particularly upbeat on Johnson & Johnson (NYSE:JNJ) stock, investors really should consider it among the best Warren Buffett stocks to buy and hold.

Yes, the majority of analysts covering JNJ shares currently rate it a hold. But it remains exactly the kind of investment that Warren Buffett would be excited about. 

Most pundits expect that Johnson & Johnson will continue to grow steadily in the coming years with a consensus that it should trade near $240 five years from now. 

The beauty of investing in JNJ stock is that it is a set-it-and-forget-it type of stock. It carries a beta of 0.57 over the past five years. That means it moves 57% as much as the market overall.

It’s much less volatile so investors don’t have to worry as much about it depreciating. Just sit back, reinvest its dividend, and let compounding work its magic. 

Apple (AAPL)

Apple (NASDAQ:AAPL) stock recently got a big boost when October CPI numbers came out. The numbers were better than expected and the lowest since January. 

The numbers suggest that inflation is subsiding and that the economy may have reached a turning point. This is important for all stocks. But it’s particularly important for embattled tech stocks like Apple that have been battered by the Fed’s fight to tamp down inflation. 

That’s a short-term win and not that important to Apple over the next decade, sure. But it is a positive sign for what has been the best Warren Buffett stocks to buy and hold in 2022. 

Apple is currently dealing with issues at its China Foxconn facilities that threaten to hinder sales of iPhones in the short term.

Again, not particularly germane to the longer-term outlook. Further, Apple has repeatedly outdone itself in 2022. Most recently, the firm posted another record quarter of sales. Expect more of the same over the coming decade. 

Coca-Cola (KO)

This year Coca-Cola (NYSE:KO) has received a lot of investor attention for its defensive characteristics.

Investors have flocked to the consumer packaged goods giant partly because it tends to do well in any economy. 

So, with inflation at 40-year highs and recession worries spiking, investors sought refuge in the Atlanta firm famous for its soft drinks. 

But Coca-Cola is an investment that has performed well for a long time, not just in 2022. That’s what makes it one of the perennial Warren Buffett stocks to buy and hold.

An investment in KO stock made a decade ago would have more than doubled due to its 8.06% average annual return over that period. 

In the future, expect the firm to continue to rely heavily on Coca-Cola as its cash cow while whittling down its brand portfolio to focus on growth in sparkling flavors, hydration, and coffee as examples. 

Like JNJ, KO stock is famous for being among the dividend aristocrats and a dividend king.

Coca-Cola’s worldwide popularity makes KO stock reliable for the next decade and more and that’s why Warren Buffett is such an ardent supporter of it. 

Chevron (CVX)

Short-term bearishness around Chevron (NYSE:CVX) stock centers on the notion that the oil industry’s current banner profits can’t continue indefinitely.

So, even though Chevron had its second straight extremely strong quarter, its 10% Q3 earnings increase isn’t something investors can realistically expect to continue moving forward. 

Chevron is also surrounded by long-term bearishness. The argument is that oil giants are entering a period of slowing business prospects as investment in green energy ramps up.

It’s undeniable that renewable energy is growing with capacity expected to increase by more than 80% by 2026. But what often gets lost in the bigger picture is that oil will remain vital to economies everywhere for the coming decade.

For what it’s worth, OPEC doesn’t expect oil demand to plateau until sometime after 2035. 

Thus, CVX has a long runway with which to strategize making investment attractive now and into the future. Take the dividend and don’t worry too much about any immediate danger to the oil industry. 

Globe Life (GL)

Globe Life (NYSE:GL) sells life insurance and is among one of the few companies in this sector that is also one of the best Warren Buffett stocks to buy and hold.

Buffett likes the insurance industry business model because it provides what is referred to as ‘float’. Float is simply a stable flow of premiums that can be used for other acquisitions. 

That float has proven to be effective for Globe Life as a business over the last decade. GL stock’s average annual returns of 14.01% over that period clearly show that those premiums equate to a strong, steadily-growing business. 

14% annual returns really add up over a 10-year period. An investment in GL made 10 years ago would have multiplied in value by a factor of 3.71 by today.

Life insurance may not be the sexiest business but Globe Life is a company that operates well within the industry. That’s exactly what Warren Buffett looks for. Remember, GL stock also comes with a modest dividend yielding 0.73%.

While it may not be high, it is a valuable source of funds that can be used to repurchase shares if wanted. 

Snowflake (SNOW)

Snowflake (NYSE:SNOW) stock might not seem like one that Warren Buffett would purchase at first glance.

It is securely in the growth space after all and just the kind of long-term investment that makes it one of the more interesting Warren Buffett stocks to buy and hold. 

A look at the financial statements of the cloud data warehousing firms shows as much. For example, in the latest quarter revenues increased a whopping 82.3%, reaching $497.25 million. But at the same time, Snowflake ended up losing $222.8 million in the quarter. Those aren’t the kind of metrics Buffett is normally interested in. 

I’d offer two explanations. First, Snowflake’s losses through the first half of 2022, at $388.6 million, are lower than they were a year earlier.

Meanwhile, the company saw revenues increase 83.5% to $919.6 million. Those figures are highly encouraging and suggest dramatically increasing efficiency and an expectation of profitability in the future. 

Second, it’s likely that the growth projections are simply too exciting for Buffett. It is expected that cloud data warehousing will grow at an average of 22.56% annually through 2026.

Snowflake is a U.S. company and Buffet invests in U.S. firms. So, it looks like a growth pick from the Oracle of Omaha which fits well with the 10-year time horizon suggested here. 

Visa (V)

Visa (NYSE:V) stock represents a firm that facilitates digital payments and does so particularly well. V shares grew at an average annual rate near 20% over the past decade.

There are very few other methods to get 6X returns with less risk. That makes V stock very attractive among Warren Buffett stocks to buy and hold.

The digital payments landscape is rapidly evolving. Visa, for its part, is attempting to be a major player in that conversation. It has partnered with companies including Chime, Rappi, and NIUM to develop new payment methods for the future. 

Investors should anticipate that Visa will be leveraging its massive resources to ensure that it capitalizes on that growth. But at the same tie, its core business remains extremely solid.

The $31.91 billion analysts expect the firm to record this year is anticipated to grow to nearly $36 billion next year. In short, Visa has a lot of ways to win in the next decade just as it did in the last decade. 

On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.