Buffett’s Legacy: A Few Decent Punts

Old Warren has, rather sensibly, decided to hang up his boots. A perfectly reasonable decision, really. One can only calculate compound interest for so long before succumbing to a perfectly understandable ennui. Still, the chap did have a knack for spotting a decent business, and one can’t entirely dismiss the stocks he favored. Rather like a particularly reliable, if unimaginative, tailor. One knows precisely what one is getting.

Buffett’s preference for long-term holdings was, of course, utterly pedestrian, but undeniably effective. He favored companies with a certain…stickiness, shall we say? Brands that clung to the public’s affections, and, more importantly, continued to generate dividends. A thoroughly sensible approach, though lacking in a certain…flair.

Here are a few names still gracing the Berkshire Hathaway portfolio, which, while hardly a guarantee of success, are at least…interesting. One might even consider them a moderately sound punt.

1. Apple

The iPhone. A perfectly serviceable device, and undeniably popular. Apple (AAPL +0.60%) has, through a combination of clever marketing and sheer ubiquity, become one of the larger companies on the planet. Their ecosystem, while rather confining, is undeniably effective at extracting revenue. Billions of devices, countless subscriptions… a perfectly respectable cash cow. And they do, thankfully, deign to share a portion of the profits with shareholders. A dividend increase for twelve consecutive years? How…reliable.

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Artificial Intelligence, of course, is the current obsession. Apple’s slightly tardy entry into the fray has caused a predictable flurry of hand-wringing. But one suspects they’re simply biding their time, and avoiding the expense of building yet another vast data farm. A perfectly reasonable strategy. Their ecosystem is sufficiently…sticky to ensure continued relevance, and the potential for integrating AI is, shall we say, adequate. A no-brainer? Perhaps. Though one should never underestimate the capacity of technology to disappoint.

2. Coca-Cola

Everyone gets thirsty. A remarkably simple observation, yet one that underpins the enduring success of The Coca-Cola Company (KO +0.90%). Beyond the rather sugary beverage itself, Coca-Cola is a global distribution machine, capable of delivering billions of servings of…well, everything, really. And they’ve been paying dividends for over sixty years. Sixty! One almost feels obliged to applaud such steadfastness.

Growth is hardly spectacular, but then, one doesn’t expect fireworks from a beverage company. The market is fragmented, which plays nicely into Coca-Cola’s hands. Size and distribution are formidable advantages. Acquisitions, new products, emerging markets… perfectly sensible avenues for continued, if modest, expansion.

3. Chevron

Energy. Dreadfully dull, really. But undeniably necessary. And currently in rather high demand, thanks to all these…data centers. Chevron (CVX +0.49%) is a long-established player, exploring, producing, refining…the usual. And, rather predictably, paying dividends for thirty-seven years. One begins to suspect a pattern.

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The acquisition of Hess is, of course, a clever move, giving them a stake in the Guyana Stabroek Block. A rather significant oil discovery, by all accounts. Chevron anticipates growth and cash flow through 2030. Perfectly predictable. And, for those of us who enjoy a steady stream of dividends, perfectly acceptable.

4. Visa

The decline of cash is, of course, inevitable. A perfectly logical progression. And Visa (V 4.50%) is, quite naturally, benefiting handsomely. A toll collector, essentially. Taking a small fee on every transaction. A remarkably efficient business model. Billions of transactions, countless fees… a perfectly respectable source of revenue.

The network is mature, and increasingly profitable. Sixteen consecutive years of dividend increases. Growth has slowed, naturally. But Visa continues to generate a considerable amount of cash flow. And, as long as people continue to spend money, that’s likely to continue. A perfectly reliable, if uninspired, investment.

5. Domino’s Pizza

Pizza. Arguably the most reliable food business one could invest in. Cheap, universally popular, and culturally ingrained. Domino’s Pizza (DPZ +4.09%) took that simple premise and added a franchise model, technology, and operational efficiency. The result? A global juggernaut with over 21,000 stores. And they’ve been paying and raising their dividend for twelve years. Remarkable. Truly.

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A balance between taste and price has allowed them to capture a significant share of the U.S. quick-service pizza market. They aim to reach 50,000 stores eventually. A winning recipe for steady growth. Investors looking for a simple, yet wonderfully predictable business could do far worse. One can sleep soundly knowing that pizza is unlikely to fall out of fashion.

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2026-02-24 15:43