2 Warren Buffett Stocks That Could Set You Up for Life

Warren Buffett, arguably the greatest investor of all time, is renowned for his long-term investment apach

He's been quoted as saying that his favorite holding period is forever

For those looking to apply Buffett's wisdom -- which might not be such a bad idea considering his track record -- it's helpful to consider in the stocks he loves

With that said, let's consider two Buffett-apved stock picks that look ly to vide terrific returns for a long time: His own Berkshire Hathaway (BRK. 89%) and Mastercard (MA -2

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Berkshire Hathaway Buffett surprised the investment world earlier this year when he announced that he would be stepping down as CEO of Berkshire Hathaway at the end of the year

It was bound to happen eventually, as he's well into his 90s, but now that it's official, some might wonder whether the conglomerate can generate the same kinds of returns under different management

My view is that it can

Looking at the first, Berkshire Hathaway boasts dozens of subsidiaries across various major industries, including insurance, energy, railroads, and apparel

Some of the companies' brands are well known in their fields: GEICO, Fruit of the Loom, and Duracell come to mind

Additionally, Berkshire Hathaway has a portfolio comprising over 30 holdings, which further enhances diversification

That's one of the company's strengths; it is diversified enough to survive even the most severe downturns

Some of Berkshire Hathaway's subsidiaries (or companies in which it holds s) will perform relatively well even when others aren't

What the company's next leaders

The man who will soon become the CEO of Berkshire Hathaway is Greg Abel, the current CEO of Berkshire Hathaway Energy

He has been with the company for years and has risen through the ranks, ly absorbing Buffett's and Munger's wisdom along the way to the top

Abel has been responsible for the company's non-insurance operations, including its energy and railroad es, for a while

That already says something Abel

But he won't be alone

Ajit Jain, VP of insurance operations, has been responsible for that side of the for a long time

Berkshire Hathaway's robust underlying operations and its next generation of leaders should lead the company into a new era of success that is ly to last for decades, just the old one under Buffett and Munger

Though things are changing, the stock remains a top long-term pick

Here's how the stock has performed since

MA Total Return Level data by YCharts ly, this was a great decision

Although Mastercard has crushed the market in the past 14 years, it's not too late to invest in the stock

Mastercard operates a payment network that facilitates debit and credit card transactions by connecting merchants with issuing banks -- the institutions that vide these cards

Mastercard's role is that of an intermediary

The company is an undisputed leader in its niche

Mastercard benefits from a powerful network effect

The more consumers own cards branded with its logo, the more attractive its ecosystem is to merchants

Some might argue that since card transactions are already widespread, there isn't much room left for Mastercard to grow

However, nothing could be further from the truth

Here are two powerful long-term tailwinds the company should benefit from for years to come

Second, the growth of the e-commerce market will create a need for more digital payment methods, including the kinds that the company offers

Cash and checks are usually not an option when buying things online

Mastercard will have to contend with competition from its eternal rival, Visa

However, there is more than enough space for both leaders to thrive, as they have over the past decade (and beyond)

Expect Mastercard to continue performing well over the long term, and it's worth noting that its excellent dividend gram makes the stock even more attractive

Mastercard is an excellent pick for growth and income-oriented long-term investors

Sper Junior Bakiny has positions in Berkshire Hathaway and Mastercard

The Motley Fool has positions in and recommends Berkshire Hathaway, Mastercard, and Visa

The Motley Fool has a disclosure policy.