Warren Buffett has built a billion-dollar portfolio at Berkshire Hathaway thanks to his belief in choosing quality companies and holding on for the long term. This has helped Berkshire Hathaway deliver a compounded annual gain of nearly 20% over the past 58 years, surpassing the S&P 500's 10% compounded increase during that period. Buffett has even said that his ideal holding period for a stock is "forever."

The Oracle of Omaha, as he's often called, truly has followed through on that, hanging onto some of his favorite stocks as they deliver share performance and generate passive income for his portfolio over time. So, if you're looking for a couple of forever stocks, it's a great idea to consider players that Buffett has spoken highly of and held for many years. Let's check out two Buffett favorites to buy and never let go.

Coca-Cola

Buffett first bought shares of Coca-Cola (NYSE: KO) back in the late 1980s and continued adding to the position through 1994. Berkshire Hathaway spent $1.3 billion on 400 million shares -- and has held onto them ever since. Part of the reason for Buffett's loyalty to Coca-Cola has to do with the company's dedication to dividend payments and dividend growth.

Berkshire Hathaway collected $75 million in dividend payments back in 1994 and that grew to $704 million by 2022. "Growth occurred every year, just as certain as birthdays," Buffett wrote in a recent shareholder letter.

Of course, most investors don't have the resources to buy millions of shares of Coca-Cola, but even with a small investment in the company, you can gain access to recurrent and increasing passive income -- to either pocket or reinvest into this market giant. Since Coca-Cola, as a Dividend King, has lifted its dividend for more than 50 straight years, it's clear the company is committed to rewarding shareholders. (And with more than $9 billion in free cash flow, Coca-Cola has the financial resources to do so.)

Buffett also favors investing in quality companies driving the U.S. economy, and Coca-Cola, as the world's biggest non-alcoholic beverage maker, is one of them. Coca-Cola has grown revenue and profit over time and into the billions of dollars.

Today, Coca-Cola shares trade for 28x trailing 12-month earnings, a level that's remained somewhat steady over time even as revenue has climbed. So, this classic stock still makes a great one to buy and hold -- for the company's steady earnings growth and passive income potential.

Apple

Buffett shocked the market this year by selling shares of Apple (NASDAQ: AAPL), his biggest holding and one of his favorite stocks. In the second quarter, he reduced Berkshire Hathaway's position by 49% to 400 million shares (after cutting the holding by 13% in the first quarter). So why should you buy the stock if Buffett is selling? It's important to keep in mind the potential reason behind the move.