Warren Buffett is no fan of short-term trends. Rather than focusing on the flavor of the minute, Buffett instead fixates on trends that will last decades.
And then he makes a fortune off of them.
Take his investment in Coca-Cola (NYSE: KO), for example. Buffett began buying the soda maker in 1988, eventually acquiring about 7% of the company, thinking it had room to grow in the developing world.
He was right. What was a roughly $1 billion investment for about 200 million shares is now worth nearly $14 billion.
But it doesn't stop there. The same can be said for his stakes in Wells Fargo (NYSE: WFC), American Express (NYSE: AXP), IBM (NYSE: IBM), the list goes on...
Buffett's stock purchases are some of the best examples of what we call "Forever Stocks." It's a term coined by Paul Tracy, StreetAuthority's co-founder and chief investment strategist of our Top-10 Stocks newsletter. Forever Stocks are stable, growing companies you buy and hold almost quite literally "forever." And like Buffett's Coca-Cola stake, you can make incredible gains over time, while resting easy knowing that you own shares of a solid company.
Back in February, I briefly mentioned that the billionaire investor's firm, Berkshire Hathaway (NYSE: BRK-A) (NYSE: BRK-B), had acquired more than $200 million worth of stock in another company, one of the leading kidney dialysis center operators in the United States.
So did Buffett just buy another Forever Stock?
I think so. Here's why...