Why Berkshire’s new boss just named four “forever” stocks — and quietly shrugged at two others
When a company built by Warren Buffett hands the reins to Greg Abel, investors listen. In his first shareholder letter as Berkshire Hathaway’s CEO (published in early March 2026), Abel did more than salute the past — he clarified which holdings he views as “forever” and which ones didn’t make that inner circle. The choices are equal parts reassurance and subtle signal about what matters when stewardship changes but the mandate to preserve value doesn’t.
This matters because Berkshire’s portfolio is enormous, concentrated, and iconic. What the company says about its biggest positions matters for markets and for anyone trying to think long term about durable businesses.
What Abel called “forever” — and why it matters
Abel described four holdings as core, long-term positions Berkshire expects to own for decades:
- Apple
- American Express
- Coca-Cola
- Moody’s
Why those four? The common thread is clarity: strong brand moats, predictable cash flow, management teams Berkshire trusts, and business models that have shown resilience across cycles. Abel’s naming of these companies signals continuity with Buffett’s playbook: identify exceptional businesses, buy sizeable stakes at attractive prices, and hold through time.
A few quick context points:
- These four companies make up a large portion of Berkshire’s equity portfolio — together they’re a center of gravity for the firm’s public-equity bets.
- Apple in particular is massive for Berkshire by market value; Coke and AmEx are classic Buffett examples of consumer and financial moats; Moody’s offers a high-margin, durable niche in credit-rating services.
The two notable omissions
Two of Berkshire’s other very large holdings were notably absent from Abel’s “forever” roster:
That doesn’t mean they’re being sold tomorrow. But omission is itself information. In Bank of America’s case, Berkshire has already trimmed its position significantly in recent quarters, and Buffett historically points to stakes he truly intends to “maintain indefinitely” — the omission hints at reduced conviction or simply a pragmatic reweighting. Chevron remains a huge position but is more exposed to commodity cycles and capital allocation debates than the four Abel singled out.
Why this distinction matters for investors
- Signaling vs. action: Naming a stock as “forever” is not a trade order, but it is a governance signal. It tells shareholders what management views as reliable anchors of capital allocation.
- Style clarity: The four “forever” names reinforce Buffett-era core principles — brands, margins, predictability — while the omitted names underscore that portfolio composition can shift even at a company famous for buy-and-hold.
- Succession risk and continuity: Abel’s list reassures those worried that Berkshire might abandon Buffett’s temperament. It also highlights the open question of who will make day-to-day portfolio choices; Abel inherited stewardship responsibilities but doesn’t have the same public track record as Buffett.
How to think about “forever” stocks for your own portfolio
- “Forever” for Berkshire ≠ forever for every investor. Berkshire’s stake sizes, tax position, and horizon are unique.
- Look for durable cash flows and pricing power, not just nostalgia. Coca-Cola’s brand vs. Chevron’s commodity exposure illustrates the difference.
- Be honest about concentration: Berkshire’s approach is concentrated bets. Most individual investors should balance conviction with diversification.
- Reassess when the business changes, not when the stock price does. Holding forever means monitoring the business — management quality, competitive edge, and capital allocation — not checking charts daily.
A few concrete investor takeaways
- If you admire Buffett-style investing, study why Apple, AmEx, Coke, and Moody’s fit that mold rather than simply copy the tickers.
- Treat the omission of Bank of America and Chevron as a reminder that even blue-chip holdings can be downgraded in conviction.
- For long-term investors, focus on business durability and management incentives; for traders, these signals may matter more for short-term flows than long-term fundamentals.
What this moment reveals about Berkshire itself
- Continuity with adaptation: Abel’s letter emphasizes sticking to durable businesses while acknowledging an evolving portfolio and new capital-allocation dynamics.
- Cash pile and patience: Berkshire still holds massive cash reserves — a tactical advantage if valuations wobble and buying opportunities appear.
- Uncertainty in day-to-day management: With the portfolio’s traditional stewards reshuffled, the market is watching how Berkshire will source new big ideas and allocate capital at scale.
My take
Abel’s naming of four “forever” stocks reads like a careful bridge: it comforts investors who feared a wholesale departure from Buffett’s philosophy, while also hinting that practical decisions — trimming, adding, and pivoting — will continue. For most individual investors, the lesson isn’t to buy these exact names blindly; it’s to adopt Berkshire’s discipline: buy strong businesses with durable advantages and hold them until the story truly changes.
Sources
Related update: We recently published an article that expands on this topic: read the latest post.
Related update: We recently published an article that expands on this topic: read the latest post.
These 5 Ultra‑High‑Yield Dividend Stocks Could Power Your 2026 Income Plan
Intro hook
Looking for steady cash flow in 2026 without chasing speculative growth stocks? Dividend yields in the 5%–8% neighborhood are downright rare for large-cap names — and that's exactly why income-hungry investors are paying attention. Below I walk through five ultra‑high‑yield picks highlighted recently by The Motley Fool, explain why their yields are so attractive, and flag the biggest risks to watch before you put money to work.
Why this matters right now
- The late‑2020s market has been a tug‑of‑war between higher interest rates, resilient corporate profits, and a search for yield as bond returns normalized.
- Companies in midstream energy, REITs, and BDCs have become go‑to sectors for income because they historically generate predictable cash flows or distribute most of their taxable earnings.
- But high yields often reflect market skepticism — either the business faces cyclical pressures, elevated leverage, or payout sustainability questions. Knowing which high yields are durable is the difference between a steady income stream and a painful cut.
A short snapshot of the list
- These five names were recently profiled by The Motley Fool as “ultra‑high‑yield” candidates to consider for 2026: Enterprise Products Partners, Realty Income, Brookfield Infrastructure Partners, Oneok, and MPLX. (fool.com)
What makes each pick interesting
-
Enterprise Products Partners (EPD) — Yield ~6%
- Why it stands out: A top U.S. midstream operator with an enormous pipeline footprint and a long history of distribution increases. Capex cycling down after big build years can free up cash for distributions or buybacks. (fool.com)
- Watch out for: Commodity cycles, take‑or‑pay contract mix, and MLP/partnership structures that add tax and payout complexity.
-
Realty Income (O) — Yield ~5%
- Why it stands out: “The monthly dividend company” — a large, diversified REIT with thousands of properties and a long streak of regular increases (monthly payouts and many consecutive quarters of increases). REITs must distribute most taxable income, which supports predictable income for shareholders. (fool.com)
- Watch out for: Rising rates that can pressure REIT valuations, tenant credit risk in certain retail segments, and the need to grow funds from operations (FFO) to sustain payout growth.
-
Brookfield Infrastructure Partners (BIP) — Yield ~5%
- Why it stands out: A diversified global infrastructure platform (utilities, transport, midstream, data) that benefits from long‑dated contracts and regulated or contracted cash flows. Management recycles capital to fund growth in higher‑return areas like data centers. (fool.com)
- Watch out for: Currency exposure, cyclical asset sales, and the complexity of parent/structure and fee arrangements.
-
Oneok (OKE) — Yield ~5%
- Why it stands out: A growing U.S. midstream operator that expanded via acquisitions in 2024–2025 and has signaled dividend raises in early 2026. The business model centers on fee‑based cash flow from pipelines and terminals. (fool.com)
- Watch out for: Integration risk from large acquisitions and higher leverage following deal activity.
-
MPLX (MPLX) — Yield ~7.7%
- Why it stands out: One of the highest yields among large‑cap midstream names. Backing from Marathon Petroleum helps provide steady feedstock and contractual relationships; recent basin expansions support near‑term growth. (fool.com)
- Watch out for: The very high yield signals elevated market concerns — monitor coverage ratios, commodity exposure, and whether special items or one‑time cash flows are propping up the payout.
How to think about yield versus risk
- High yield is the symptom, not the diagnosis. A 7%+ yield can be attractive, but it’s crucial to ask why the market is pricing that income stream so richly.
- Evaluate payout coverage: For REITs use FFO/AFFO per share, for midstream look at distributable cash flow (DCF) coverage, and for BDCs examine core net investment income and book value trends.
- Balance diversification: If your portfolio tilts to energy midstream and REITs for yield, be aware those sectors can correlate during economic slowdowns. Consider mixing in dividend growers, utility names with stronger balance sheets, or high‑quality bond funds to smooth volatility.
- Tax and structure: MLPs/partnerships and BDCs bring different tax reporting and distribution characteristics than simple dividend‑paying corporations. Factor tax efficiency and account type (taxable vs. retirement account) into allocation decisions.
Practical allocation ideas
- Income bucket approach: Put a portion of your “income” allocation into higher‑yielding names (like these picks), but cap single‑position exposure to limit the impact if a dividend is cut.
- Ladder with maturity‑like diversification: Combine monthly/quarterly payers, categorial diversification (midstream, REIT, infrastructure, BDC), and varying yield levels so one sector’s weakness doesn’t derail overall income.
- Reinvest vs. cash: Decide whether to take dividends as cash for living expenses or reinvest them to compound returns — your choice should match your near‑term liquidity needs.
A few cautionary datapoints from other sources
- High yields often show up when share prices fall; that can reflect true underlying weakness. Kiplinger and other outlets frequently warn not to buy yield blind — check why a stock is cheap before assuming the dividend’s safe. (kiplinger.com)
- Third‑party aggregators and exchanges republishing the Motley Fool list help confirm tickers and yield figures but always verify current yields and payout announcements on company filings or reliable market data before trading. (nasdaq.com)
Key takeaways
- These five names (Enterprise Products Partners, Realty Income, Brookfield Infrastructure, Oneok, MPLX) offer yields in the roughly 5%–7.7% range and are backed by business models that can generate steady cash. (fool.com)
- Yield alone isn’t a buy signal — check payout coverage metrics, leverage, and the company’s growth pipeline.
- Diversify across sectors and structures (REIT, midstream, infrastructure, BDC) to reduce single‑sector concentration risk.
- Confirm yields and recent dividend actions with up‑to‑date company reports or market data before investing.
My take
If your priority for 2026 is steady income, these names deserve a seat at the due‑diligence table. I’m especially drawn to diversified infrastructure and high‑quality REITs for balance, while high‑yield midstream names can make sense if you accept commodity cyclicality and monitor coverage closely. Treat ultra‑high yields like a lead — they can be heavy, useful, and occasionally dangerous if you don’t know why they’re so heavy.
Sources
Related update: We recently published an article that expands on this topic: read the latest post.