Warren Buffett's Legacy: 2 of His Favorite Stocks to Buy and Hold Forever

It's hard to believe Warren Buffett is no longer the CEO of Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B). But with 2026 now underway, Buffett has reduced his role at the conglomerate to chairman of the board.

As one of the most celebrated investors in modern market history, his legacy lives on -- not least because many of the holdings in Berkshire's equity portfolio are his ideas. Here's a brief look at two of the better buy-and-hold picks: finance sector titan American Express (NYSE: AXP) and beverage king Coca-Cola (NYSE: KO).

1. American Express

Amex has been in the news lately, and not for the right reasons (at least, as far as shareholders are concerned). In mid-January, President Trump announced he wants to impose a temporary 10% cap on credit card interest rates.

Image source: The Motley Fool.

Amex, which is both the issuer of the credit and the processor of transactions on its plastic, might have to comply with this rather significant new rule.

This, however, is a big "if." At least on paper, the U.S. president does not have the unilateral authority to impose such a limitation on the credit card industry. Nevertheless, cautious investors sold out of Amex and its fellow card-processing giants after Trump's pronouncement.

Given the uncertainty, it creates an instant and compelling buy-on-weakness opportunity for the stock. After all, Amex as a company is unique -- no plastic comes anywhere near the prestige of its legendary Black Card -- and it's both an effective issuer and processor. With that combination, it earns interest on cardholder balances and a small piece of every one of the cardholders' transactions.

The numbers tell the tale. In Amex's most recently reported quarter, the company grew revenue by an impressive 11% year over year to $18.4 billion. Headline net income advanced even more aggressively, popping by 16% to $2.9 billion. And that qualified as a typical quarter for this ever-profitable operator.

2. Coca-Cola

Coca-Cola is, of course, the creator and purveyor of its namesake drink, although this is only one item within a huge portfolio. The company also owns Minute Maid orange juice, the Costa coffee brand, and Dasani water, among many other products.

It's hard to find any grocery store, supermarket, or restaurant anywhere in the world that doesn't stock Coca-Cola products. This gives the beverage's maker a near-unparalleled scope and reach among consumers. This, plus the fact that its drinks require little innovation, makes it a cash-generating machine, if not a hotly growing enterprise given its size and reach.

That said, it usually manages to squeeze out some growth. It managed to improve net revenue by 5% year over year to $12.5 billion in its third quarter of 2025, with net income not in accordance with generally accepted accounting principles (GAAP) ticking up 6% to $3.5 billion.

For many, Coca-Cola's great appeal is that it's one of the market's most reliable income stocks. It is, in fact, a Dividend King, having declared dividend raises annually for 63 years in a row. The quarterly dividend of $0.51 per share boasts a fizzy yield of 2.9%.

This is one of the sturdiest and most reliably well-performing companies any investor could hope to own. Plus, that ever-rising dividend is lucrative on its own. I've been a longtime Coca-Cola bull, and I see no reason to change that stance now -- or, very possibly, ever.

American Express is an advertising partner of Motley Fool Money. Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway. The Motley Fool has a disclosure policy.