Warren Buffett once wrote that his favourite holding period is “forever.” If I’m going to apply that mentality to a single stock inside a Tax-Free Savings Account (TFSA), what better company to consider than the conglomerate he spent decades building?
My pick would be Berkshire Hathaway Inc. (NYSE: BRK.B). Yes, Buffett stepped down as chief executive at the end of 2025. But his successor, Greg Abel, has already demonstrated his own approach to managing Berkshire’s enormous financial resources.
Under Abel, Berkshire has resumed share repurchases, become a net buyer of public equities again, increased its technology exposure, and has even acquired a mid-cap homebuilder outright.
What matters more to me is that Berkshire’s underlying culture remains intact. The company still emphasizes disciplined capital allocation, decentralized operations, strong balance sheets, and buying assets when management believes the price makes sense.
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Berkshire’s enormous war chest
One of Berkshire’s most unusual advantages is the sheer amount of liquidity it maintains. At the end of the second quarter of 2026, Berkshire held approximately $365 billion of cash and equivalents, down from almost $400 billion as Abel began deploying more capital.
Some of that liquidity needs to be considered in the context of Berkshire’s enormous insurance operations. Insurers need substantial resources available to meet claims, and Berkshire’s insurance float is a major component of its business model.
But the cash pile also provides something I value immensely: optionality. If markets crash, Berkshire doesn’t need to sell assets to raise money. It can buy stocks at depressed valuations, acquire entire businesses, repurchase its own shares, or provide capital when other companies desperately need it.
That last point has historically been particularly valuable during crises. Berkshire’s financial strength has allowed it to negotiate preferred stock investments on favourable terms precisely when capital was scarce. I view that liquidity as both a financial fortress and a source of future opportunities.
Look beyond the 13F
Whenever Berkshire releases its quarterly 13F filing, investors immediately dissect which publicly traded stocks it bought and sold. That portfolio gets plenty of attention, but it isn’t the main reason I would own Berkshire forever.
I’m much more interested in the collection of wholly owned businesses underneath it. BNSF Railway moves freight across an enormous North American network. GEICO sells auto insurance. Berkshire Hathaway Energy owns utility and energy infrastructure. Other subsidiaries span manufacturing, distribution, retailing, housing, industrial products, and numerous other businesses.
These companies continually kick cash back up to Berkshire, where management can decide where it earns the highest prospective return. That creates an internal compounding machine.
Cash generated by a railroad can eventually fund an acquisition somewhere else. Insurance float can support investments. Earnings from mature subsidiaries can be redirected toward businesses with better opportunities.
You effectively own a diversified collection of operating companies while allowing Berkshire to allocate the resulting cash on your behalf.
No dividend is a feature
Berkshire’s refusal to pay a dividend might disappoint income investors, but I consider it another advantage. A dividend makes sense when management no longer has attractive opportunities for excess capital. Berkshire still has alternatives.
It can acquire entire companies, invest in publicly traded businesses, expand existing subsidiaries, maintain its fortress balance sheet, or repurchase Berkshire shares when management believes they trade below intrinsic value.
Abel restarted buybacks in March 2026 after concluding that repurchases could create long-term shareholder value, and Berkshire spent roughly $4.5 billion on them during the second quarter alone.
The absence of a dividend also fits particularly well with a TFSA. U.S. dividends received inside a TFSA are generally subject to 15% U.S. withholding tax. Berkshire pays no dividend, so there is nothing to withhold. Instead, management retains the capital and attempts to compound it internally, while capital gains realized by a Canadian investor inside the TFSA remain tax free in Canada.
If I’m genuinely trying to own one stock for decades without touching it in a TFSA, that’s exactly the structure I want.
