“Our favorite holding period is forever” — Warren Buffet.

Are you a true investor?

True investors have holding periods of 10 years or more. This means they will not be actively selling or trading their stock holdings. It is easy to lose money as a short-term trader, and many who try do not end up beating a buy-and-hold strategy.

For this reason, it is recommended for most people to simply invest in their favorite companies for decades at a time and avoid selling. With this in mind, let’s take a look at some of the best stocks to hold in your long-term portfolio.

1- McDonald’s

McDonald’s Corporation owns and operates fast-food restaurants that are across the world. The food they sell is cheap and available everywhere making McDonald’s a defensive stock. This means during periods of high inflation stocks like McDonald’s perform well since they provide reliable revenue and can increase prices to help combat inflation. Additionally, McDonald’s owns its real estate and this also acts as an inflation hedge because prices of land tend to go up during inflation.

Aside from its amazing business model, McDonald’s brand is recognized worldwide. Good brands lead to loyal customers, especially when paired with cheap and quick food that can easily be purchased on the go. Its customer loyalty program is great too as returning customers can earn points and use them to get free food. This further strengthens McDonald’s brand and customer loyalty.

Additionally, hedge funds are interested in McDonald’s based on regulatory filings from Bridgewater Associates. At the end of 2021 Bridgewater owned $449 million worth of shares representing close to 3% of the portfolio. This provides confidence to investors because they know that big money is bullish on the company. During times of rising interest rates, stocks like McDonald’s are a great choice for your portfolio.

2- Coca-Cola

Based in Georgia, the Coca-Cola Corporation is a beverage company famous for its soft drinks. This stock is the most classic example of a value stock because of its reliable revenue and dividend payments. Value stocks tend to move slow and steady and outperform growth stocks during periods when the stock market is declining. Rising interest rates cause investors to sell unprofitable growth companies with lots of debt to buy companies like Coca-Cola that are consistently bringing in cash flow.

Berkshire Hathaway has a large stake in Coca-Cola because of Warren Buffet’s bullish mindset toward the company. Berkshire is a top investor in Coca-Cola owning an astonishing $23 billion worth of shares. This large number of shares provides Buffet with over $600 million in dividends each year. Every investor’s dream is the ability to live off their dividend payments alone so Buffet’s position in Cola-Cola is motivating to say the least. This stock position took Buffet his entire life to build up which is why Coca-Cola is a great stock to hold long-term.

3- Starbucks

Starbucks operates as a marketer, roaster, and retailer of specialty coffee across the globe. In addition to the popular ready-to-drink products that Starbucks offers, they also sell single-serve items, roasted whole beans, ground coffees, and even various food products like pastries and sandwiches. Most importantly, the brand Starbucks has built is popular and known just about anywhere. Some may even replace the word coffee with Starbucks, signaling how dominant it has become in the coffee industry.

Starbucks’ revenues do not disappoint either as they have been growing year over year. During the Covid-19 pandemic, many stores were forced to temporarily close, however, it is clear according to its revenue Starbucks has no problem recovering.

Starbucks also has a membership program with over 26 million members. This is great for Starbucks because it shows that customers are shopping at its stores frequently enough to sign up for a loyalty program. This helps build the brand and also keeps customers returning to spend their reward points. Additionally, Starbucks is getting access to more detailed customer information that can be leveraged outside its stores. Overall, Starbucks has an amazing brand and is a good stock to include in your long-term portfolio.