I believe investors should consider keeping a good chunk of their portfolios invested in blue-chip cash cow stocks. Companies that have robust margins and a long history of positive cash flow are unlikely to disappoint you in the long-run. Even in the worst-case scenario, these businesses have a huge liquidity buffer and a margin buffer to shield you from a correction.

These companies have the ability to use their cash to buy back their stock when the market is in correction mode, or initiate dividends. Plus, high-margin businesses have a lot of flexibility. For instance, if a certain business segment underperforms, these companies have the cash needed to significantly boost marketing or offset these declining segments by expanding other parts of their business.

All things considered, these are the stocks you buy and forget about and cash out in a few decades when they have compounded several times. Here are three such blue-chip cash cow stocks I think are worth looking into right now.

Berkshire Hathaway (BRK-A, BRK-B)

Berkshire Hathaway (NYSE:BRK-A, NYSE:BRK-B) is one of the best stocks you can buy in the market over the long-run. This company has one of the most flexible business models out there. And importantly, Berkshire generates a boatload of cash during market rallies. Even when the market is not rallying, Berkshire Hathaway can pull out of certain companies and sit on its cash pile until the market starts to recover.

Warren Buffett’s portfolio consists of some of the highest-quality companies, and they have historically bounced back quickly from previous downturns. I believe such companies have retained their ability to bounce back even from a worst-case recession. As such, I think it is one of the best blue-chip cash cow stocks you can buy. Berkshire won’t pay you a dividend, but Buffett’s company usually buys back billions of dollars worth of BRK stock each year.

It’s a no-brainer long-term holding, in my view.

Visa (V)

Visa (NYSE:V) is one of the most stable and consistent companies out there. The company generally benefits from the movement of consumer spending worldwide. Its fortunes are undoubtedly tied to the health of the global economy, and its dominant market position and the secular shift towards cashless transactions provide a long runway for growth.

Visa’s management team has highlighted that out of the $40 trillion in global personal consumption expenditure (excluding Russia and China), over $20 trillion is addressable by Visa. With cash and checks still comprising about half of this opportunity, Visa’s tap-to-pay solutions are well-positioned to continue converting these transactions to digital formats.

Furthermore, Visa’s industry-leading net margins provide a substantial buffer against economic headwinds.

As more commerce shifts online and digital payments adoption rises worldwide, I expect Visa’s profitability to remain robust. Visa is a true cash cow that deserves a permanent place in any blue-chip portfolio.

Walmart (WMT)

Walmart (NYSE:WMT) is the world’s largest company by revenue and the most dominant global retailer. The stock has been a shining star in 2024, surging 28% year-to-date while most retailers have stumbled amid weakening consumer demand. Walmart’s Q1 results were even stronger than anticipated, with an impressive 5.7% sales growth and a 12.9% jump in adjusted operating profit.

The company is driving growth in both units sold and transaction counts while also gaining market share, including in general merchandise. This tells me Walmart’s momentum is not just inflation-driven, but a result of genuine business strength.

Moreover, Walmart is collaborating with suppliers to successfully bring prices down for shoppers. Importantly, expanded rollback discounts are clearly resonating with value-seeking customers. The company’s e-commerce business is also thriving, with strong growth in marketplace sellers and online penetration rising across all markets.

With Walmart executing on all fronts operationally while proving resilient in a tough environment, I’m positive WMT stock is one of the blue-chip cash cow stocks to buy and hold forever.

On the date of publication, Omor Ibne Ehsan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.