3 Berkshire Hathaway Stocks to Buy With $3,000 and Hold Forever

Warren Buffett's Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) owns one of the world's most closely watched portfolios. It holds 44 stocks in a portfolio worth $262.7 billion, or 23% of Berkshire's market cap of $1.13 trillion.

Many investors use Berkshire's sprawling portfolio as a shopping list for fresh investment ideas. After all, those stocks have a stamp of approval from the Oracle of Omaha himself -- so they probably have a decent shot at beating the S&P 500.

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Berkshire Hathaway CEO Warren Buffett. Image source: The Motley Fool.

But if you have only $3,000 to put in this volatile market, it might be smart to spread that cash out across three of Berkshire's most stable financial stocks: Ally Financial (NYSE: ALLY), Moody's (NYSE: MCO), and Visa (NYSE: V). All three of these reliable stocks are insulated from the near-term headwinds and have plenty of long-term growth potential.

Ally Financial

Berkshire started to buy shares of Ally Financial, one of the largest digital banks and car finance companies in America, in early 2022. Its 9.4% stake in Ally is now worth $922 million, and it hasn't sold any of those shares since 2023.

Over the past 10 years, Ally's stock rallied 45%, delivered a total return of 84% after reinvesting its dividends, and repurchased 36% of its shares. It pays a high forward yield of 3.8%, which is easily supported by its low payout ratio of 67%.

Ally generated plenty of cash for its buybacks and dividends as it expanded its auto lending business and digital-only bank, which grew much faster than its brick-and-mortar peers. From 2014 to 2024, its year-end cash and equivalents increased from $5.6 billion to $9.6 billion, while its retail deposits tripled from $48 billion to $143.4 billion. It also recently sold its credit card portfolio and stopped originating mortgages to streamline its business and reduce its overall credit risk.

From 2024 to 2027, analysts expect Ally's earnings per share (EPS) to grow at a compound annual growth rate (CAGR) of 51%. That's an impressive growth trajectory for a stock that trades at just 10 times forward earnings. Declining rates might reduce its near-term net interest margins, but it could offset that pressure as auto sales warm up again in a lower interest rate environment.

Moody's

Berkshire gained a stake in Moody's, one of the largest financial data and analytics companies in America, after it was spun off from Dun & Bradstreet in 2000. That 13.7% stake is now worth $10.6 billion, and it hasn't sold any shares since 2013.

Moody's, like its main competitor, S&P Global (NYSE: SPGI), provides a broad range of financial data, credit rating, and analytics services. Many companies and institutional investors rely on its data to issue more debt and make key financial decisions, so it's often considered an evergreen investment that flourishes during bull and bear markets.

From 2014 to 2024, its EPS grew at a steady CAGR of 9%, even as higher interest rates temporarily throttled the growth of its credit ratings business throughout 2022 and 2023, by reducing the market's appetite for fresh debt offerings. From 2024 to 2027, analysts expect its EPS to grow at a CAGR of 13% as interest rates decline again.

Over the past decade, Moody's bought back 10% of its shares. Its stock surged nearly 300% and delivered a total return of 338%. Its forward yield of 0.9% might seem paltry right now, but its low payout ratio of 30% gives it ample room for future dividend increases. Its stock might seem a bit pricey at 30 times forward earnings, but its stable growth rates and resistance to the Trump administration's tariffs could justify that higher valuation.

Visa

Berkshire started to invest in Visa, the world's largest card payments processor, in 2011. Its 0.4% stake in the company now worth $2.8 billion, and it hasn't sold any of those shares since 2021.

Visa doesn't issue any cards of its own. It only partners with banks, which handle their accounts and take on the debt, to issue co-branded cards. It generates revenue only by charging merchants "swipe fees" to process their card-based payments. That streamlined, low-risk business model drives its expansion and shields it from credit risks.

From 2014 to 2024, Visa's EPS grew at a CAGR of 16%, even as the pandemic, inflation, and other macro headwinds temporarily curbed consumer spending. From 2024 to 2027, analysts expect its EPS to increase at a CAGR of 14%. It's constantly faced demands from merchants and regulators to lower its swipe fees, but its dominance of the card payments market should keep businesses locked into its networks for the foreseeable future.

Visa bought back more than a fifth of its shares over the past decade, while its stock price rallied nearly 400% and delivered a total return of more than 430%. It pays a forward yield of only 0.7%, with a low payout ratio of 22%, and its stock doesn't look like a bargain at 30 times forward earnings. However, I believe it's still an evergreen play that should leverage its scale to easily ride out the near-term tariff headwinds.

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Ally is an advertising partner of Motley Fool Money. Leo Sun has positions in Berkshire Hathaway. The Motley Fool has positions in and recommends Berkshire Hathaway, Moody's, S&P Global, and Visa. The Motley Fool has a disclosure policy.