If any investor has stood the test of time, it is Warren Buffett, and with good reason. For years, the “Oracle of Omaha” has had a rock-star-like presence in the investing world. His annual Berkshire Hathaway shareholders meeting draws thousands of loyal fans who are investors. Known for his long buy-and-hold strategies, and his massive portfolio of public and private holdings, he remains one of the preeminent investors in the entire world. We screened the Berkshire Hathaway portfolio, looking for companies that appear poised to thrive in the current higher interest rate environment.
7. Citigroup
- Ticker Symbol: NYSE: C
- Dividend Yield: 5.34%
- Industry: Banking
Top Bank Stock
This top bank stock has rallied nicely off the lows, and Buffett bought $2.5 billion worth of stock back in the summer of 2022. Citigroup Inc. is a leading global diversified financial service company that provides consumers, corporations, and governments a broad range of financial products and services. (See how megabanks have fared since the financial crisis.)
A Range of Services
The company offers services such as consumer banking and credit, corporate and investment banking, securities brokerage, transaction services and wealth management. And it operates and does business in more than 160 countries and jurisdictions in North America, Latin America, Asia, and elsewhere.
6. Coca-Cola
- Ticker Symbol:NYSE: KO
- Dividend Yield:3.31%
- Industry: Food and Beverage
Supplying The World
This stock not only offers safety but comes with an incredibly strong worldwide brand with 40% overseas sales. Coca-Cola Co. is the world’s largest beverage company, refreshing consumers with more than 500 sparkling and still brands. It remains a top Buffet holding, as he owns a massive 400 million shares.
America’s Most Trusted Drink Brand
Led by Coca-Cola, one of America’s most trusted food and drink brands, the company’s portfolio features 20 billion-dollar brands including Diet Coke, Fanta, Sprite, Coca-Cola Zero, vitaminwater, Powerade, Minute Maid, Simply, Georgia, and Del Valle. Globally, it is the number one provider of sparkling beverages, ready-to-drink coffees, and juices and juice drinks.
5. Diageo
- Ticker Symbol: NYSE: DEO
- Dividend Yield: 2.63%
- Industry: Alcohol
Owner of Guinness
This is one of the largest producers of alcoholic beverages in the world. Diageo PLC produces, markets, and sells alcoholic beverages worldwide, including scotch whiskey, gin, vodka, rum, beer, Irish cream liqueurs, wine, Raki, tequila, Canadian and American whiskey, Cachaça and brandy, as well as adult beverages and ready to drink products. The company’s premium brands include Johnnie Walker, Smirnoff, Captain Morgan, Baileys, Tanqueray, and Guinness.
Owns Notable Brands
Diageo’s reserve brands include Blue Label, Johnnie Walker Green Label, Johnnie Walker Gold Label 18-year-old, Johnnie Walker Gold Label Reserve, Johnnie Walker Platinum Label 18-year-old, John Walker & Sons Collection, Johnnie Walker The Gold Route, Johnnie Walker The Royal Route and other Johnnie Walker super-premium brands, as well as The Singleton, Cardhu, Talisker, Lagavulin and other malt brands.
4. Jefferies Financial
- Ticker Symbol:NYSE: JEF
- Dividend Yield: 3.68%
- Industry: Banking
This broker-dealer is a newer holding for Buffett and is a very solid idea for those looking for financials other than money center banks. Jefferies Financial Group Inc. engages in investment banking and capital markets and in asset management businesses in the Americas, Europe, Asia, and elsewhere.
The company operates via its Investment Banking and Capital Markets, Asset Management, Merchant Banking, and Corporate segments. It provides investment banking, and advisory services with respect to mergers or acquisitions, restructurings or recapitalizations, and private capital advisory transactions, as well as equity and debt underwriting and corporate lending.
Company Offerings
Jefferies also offers financing, securities lending, and other prime brokerage services; equities research and finance; and wealth management services. It provides clients with sales and trading of:
- Investment-grade corporate bonds
- U.S. and European government and agency securities
- Municipal bonds
- Mortgage-backed and asset-backed securities
- Leveraged loans
- Consumer loans
- High-yield and distressed securities
- Emerging markets debt, interest rate, and credit derivative products
- Foreign exchange trade execution and securitization.
3. Kraft Heinz
- Ticker Symbol: NASDAQ: KHC
- Dividend Yield: 5.05%
- Industry: Food and Drink
Everyone Has To Eat
Even in bad times, everybody has to eat, and Kraft Heinz Co. always stands to benefit. The company was formed almost eight years ago in the merger of H.J. Heinz and Kraft Foods. The company is a leading global food company, with $25 billion in annual revenues generated by such well-known brands as Kraft, Heinz, Oscar Meyer and Maxwell House. It is also one of America’s most trusted food and drink brands.
Third-Largest Food Manufacturer
The company is the third-largest food and beverage manufacturer in North America. It derives 76% of revenues from that market and 24% from overseas. The company’s other brands include ABC, Capri Sun, Classico, Jell-O, Kool-Aid, Lunchables, Ore-Ida, Oscar Mayer, Philadelphia, Planters, Plasmon, Quero, Weight Watchers Smart Ones and Velveeta. Buffett holds a big position in the Berkshire Hathaway portfolio.
2. Kroger
- Ticker Symbol: NYSE: KR
- Dividend Yield: 2.66%
- Industry: Food and Drink
Grocery Store Giant
Kroger’s food and drug stores offer natural food and organic sections, pharmacies, general merchandise, pet centers, fresh seafood and organic produce. Its multi-department stores provide apparel, home fashion and furnishings, outdoor living, electronics, automotive products, and toys.
Kroger’s Other Offerings
Kroger’s marketplace stores offer full-service grocery, pharmacy, health and beauty care, and perishable goods, as well as general merchandise, including apparel, home goods, and toys. The price impact warehouse stores provide grocery and health and beauty care items, as well as meat, dairy, baked goods and fresh produce items.
1. Procter & Gamble
- Ticker Symbol: NYSE: PG
- Dividend Yield: 2.51%
- Industry: Health and Wellness
Keeps the World Healthy
This company offers a very solid dividend and a host of recognizable products. Procter & Gamble Co. (NYSE: PG) is one of the world’s largest consumer products firms and one of the oldest companies in the Fortune 500. Its many brands include Pampers, Tide, Bounty, Charmin, Gillette, Oral B, Crest, Olay, Pantene, Head & Shoulders, Ariel, Gain, Always, Tampax, Downy and Dawn.
Mass Distribution
The company sells its products through mass merchandisers, e-commerce, grocery stores, membership club stores, drug stores, department stores, distributors, wholesalers, baby stores, specialty beauty stores, high-frequency stores, and pharmacies. The company has been very innovative in its product development process. It uses that to help ensure future growth and cash flow. This should provide investors with years of steady growth and dividends.
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