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This Week’s Bonus Content

2 Buffett Stocks to Load Up On—And 1 to Ditch

Author: Nathan Reiff. First Published: 1/19/2026. 

In Brief

• With 64 consecutive years of dividend increases and a yield of 2.89%, it’s difficult to argue with Coca-Cola’s reputation as a strong buy-and-hold candidate, even despite concerns surrounding inflation.
• Visa’s operations may give it an advantage over some of its competitors in the face of possible credit card interest rate limits.
• Bristol Myers Squibb retains many attractive qualities for investors, but near-term pressures from Medicaid changes and patent cliffs could be an issue in the coming quarters.

Warren Buffett made substantial changes to the Berkshire Hathaway Inc. (NYSE: BRK.B) portfolio in the first quarter of 2025, including selling roughly $4 billion in Apple Inc. (NASDAQ: AAPL) shares to build a large cash and Treasury securities reserve.

Investors who chase Berkshire’s 13F filings to mimic Buffett must reckon with limited, delayed information. Still, there is a case to be made that studying the Oracle of Omaha’s holdings—at least before exiting Berkshire—can be a sensible part of an investment process.

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Some of Buffett’s long-standing positions, including stalwarts like The Coca‑Cola Co. (NYSE: KO) and Visa Inc. (NYSE: V), may merit a closer look for everyday investors heading into the new year. Conversely, other names — such as Bristol Myers Squibb (NYSE: BMY), which was only briefly held by Berkshire — might be candidates to trim or sell.

Coca-Cola Is a Proven Dividend Stock For Good Reason

One frequent criticism of Coca‑Cola, one of Berkshire’s most famous buy-and-hold positions, is that its valuation is less attractive than some alternatives.

That said, with a price-to-earnings (P/E) ratio of 23.8, the stock sits at or below levels seen for much of the past two years.

Beyond valuation, Coca‑Cola has clear strengths. It enjoys strong pricing power, which helps it adapt during periods of high inflation and supports robust cash flow.

The company delivered solid profits and beat earnings per share (EPS) estimates by $0.04 in the most recent quarter. With ample cash on hand, Coca‑Cola appears well-positioned to continue raising its dividend.

At a 2.89% dividend yield and with more than six decades of consecutive dividend increases, Coca‑Cola remains a top choice for long-term, passive-income investors.

The planned IPO of its Indian bottling subsidiary — which could raise about $1 billion — would be another potential positive for shareholders in the coming years.

Visa’s Niche Within the Credit Card Landscape Gives It an Advantage

With talk of potentially imposing limits on credit card interest rates, it might seem counterintuitive to buy a payments company like Visa.

However, Visa is less exposed to interest-rate swings than many competitors because it generates the bulk of its revenue from transaction fees rather than lending.

As long as consumers continue to use Visa‑branded cards, the company’s revenue should face less interest-rate risk than lenders’. Affordability concerns may also push more consumers toward credit, which could further benefit Visa.

The company also benefits from strong margins and a relatively attractive valuation versus some peers.

For the fourth quarter of fiscal 2025 (ended Sept. 30), Visa beat analyst estimates for both EPS and revenue, and Wall Street expects roughly 13% earnings growth over the next year. As its services expand and it supports fast-growing stablecoin-linked programs, Visa still has room to grow.

Near-Term Healthcare Uncertainty and Patent Headwinds Challenge Bristol Myers Squibb

Investors may associate biopharma giant Bristol Myers Squibb with Buffett, but Berkshire held BMY only briefly and exited the position several years ago.

Shareholders who remain invested often point to a competitive dividend yield, several brands with revenues above $1 billion, and a solid balance sheet.

Still, caution may be warranted. The healthcare sector faces broader challenges — including significant Medicaid changes introduced by the One Big Beautiful Bill Act — and BMY confronts looming patent cliffs for its bestselling blood thinner Eliquis and its immunotherapy Opdivo.

BMY can still be an attractive long-term investment for those with a multi-year horizon.

More active investors, however, might expect near-term pressure on cash flow and on the company’s top- and bottom-line results as these headwinds play out.

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