The Motley Foolยท2025-09-28 08:44Core Viewpoint - Warren Buffett's investment philosophy emphasizes holding outstanding businesses indefinitely, with a focus on companies like American Express and Coca-Cola as prime examples of "forever stocks" [1][3]. Group 1: Buffett's Forever Stocks - Buffett has invested approximately $138 billion in nine "forever stocks," with American Express and Coca-Cola being the longest-held [1][3]. - In his 2023 shareholder letter, Buffett added Occidental Petroleum to his "forever" list, highlighting its significant oil and gas holdings and advancements in carbon capture technology [3]. - The other five stocks included in Buffett's list are Japanese trading houses: Itochu, Marubeni, Mitsubishi, Mitsui, and Sumitomo, noted for their diversified business models [4]. Group 2: Performance Comparison - Over the last five years, Apple has outperformed all other stocks, while Occidental Petroleum has been the biggest winner among the group [7]. - Analysts project Occidental Petroleum will deliver the highest earnings growth next year, although the five Japanese stocks are not covered by analysts [7]. Group 3: Dividend Yields - Sumitomo offers the highest dividend yield at 3.33%, followed closely by Coca-Cola and Mitsubishi with yields of 3.09% [8]. - Coca-Cola is recognized as a "Dividend King," having increased its dividends for 63 consecutive years [8]. Group 4: Valuation Metrics - Sumitomo has the lowest forward price-to-earnings (P/E) ratio at 8.98, with Marubeni following at 11.65 [9]. Group 5: Overall Assessment - Marubeni ranks highly in both performance and valuation, with a dividend yield of 2.84% [10]. - Despite a reduced position in Apple, its long-term growth potential remains promising, particularly with rumors of new product introductions like a foldable iPhone and advancements in smart glasses and AI [11][12]. - Berkshire Hathaway maintains a significant stake in Apple, suggesting Buffett's continued confidence in the company [13].