Tag: conglomerate

Updated December 16, 2024. My years of research tell me time and time again that the best stock to invest in is BRK.B by Berkshire Hathaway. The company is known for its control and leadership by Warren Buffett, who serves as chairman and chief executive. Berkshire Hathaway is a publically traded entity and is an overwhelmingly American multinational conglomerate holding company that is based in Ohama, Nebraska. This is a publicly traded stock under the tickers Berkshire Hathaway A or Berkshire Hathaway B (BRK.B).

The main difference between Berkshire Hathaway Class A and Class B shares is their price. The Berk B shares are much more affordable and offer the benefit of flexibility. Subsequently, if an investor owns just one share of Class A and is in need of some cash, the only option is to sell that single share, even if its price far exceeds the amount of capital he needs to access.

In contrast, a holder of Class B shares can liquate part of his or her Berkshire Hathaway holdings just up to the amount needed to meet cash flow cash flow requirements. In addition, Class B also provides a potential tax benfit. Its much lower price means that BRK.B stock can be passed to heirs without triggering the gift tax as passing Class A shares does.

One final difference is that Class A shares can be converted into an equivalent amount of Class B shares any time a Class A shareholder wishes to do so. The conversion privilege does not exist in reverse. Moreover, Class B shareholders can only convert their holdings to Class A by selling their Class B shares and then buying the equivalent in Class A.

Warnings Of Possible Financial Crisis Emerging

Many people are wondering what is happening with the U.S. and global markets. In a wide-ranging conversation, I recently watched a video where you were interviewed by Charlie Rose in April 2022. In the beginning of the interview you explained that after reading The Intelligent Investor, you understood to buy businesses that are publicly traded. You became an owner of the business and you did not care whether a stock went up or down the next day, or next week, or next month, or next year because you understood the principal of value investing. You didn’t care because you knew businesses. Looking at the numbers of the businesses that you completely understood made you comfortable enough to invest in these companies.

As Warren has said, he is an extremely bright man who is terribly interested in the work that he does. He has spent a lifetime doing it and he have surrounded himself with people who bring out the best in him. Warren has said many times that he doesn’t have to be a genius in what he does and that’s the great thing about it.

From my perspective, the genius is that Warren Buffett realized, many years ago, is that he is in a game that allows him to succeed over time to the highest of levels because he didn’t really need extra intelligence. He has dedicated himself and his eventual success by focusing on one thing: investments.

Warren said it best himself: you need the right orientation where the investor would think about what the companies are going to be worth 10 or 20 years from now. What I like best is that if a person truly internalizes everything, all the necessary ingredients, they too will make a lot of money. Warren Buffett has said, “I got rich when I understood this.”

The Gem: Berkshire Hathaway Stock

Berkshire Hathaway (BRK.B) is an American multinational conglomerate holding company headquartered in Omaha, Nebraska and is owned by Warren Buffett. As probably everyone knows, Warren Buffett is one of the most successful investors of all time. As well, my years of reading and research tell me over and above that BRK.B that the best stock to invest in.

Similarly, BRK.B is a stock that combines the best value in publicly traded companies as well as privately owning a number of companies themselves. Investing in Berkshire Hathaway provides investors with property and casualty insurance and reinsurance, utilities and energy, freight rail transportation, finance, manufacturing, retailing, and services. 

Berkshire Loves Collecting Dividends

Berkshire Hathaway famously doesn’t pay dividends. Nevertheless, Berkshire stock loves collecting them. In  2018 alone, Berkshire took in $3.8 billion in dividends. “A sum that will increase in 2019,” Buffett said in the annual letter.

As of August 2020, Berkshire Class B stock is the seventh-largest component of the S&P 500 Index. On January 10, 2018, Berkshire Hathaway appointed Ajit Jain and Greg Abel to Vice-Chairman roles. Abel is vice chairman for non-insurance business operations, and Jain is vice chairman of insurance-operations. In addition, for the fiscal year 2019, Berkshire Hathaway reported earnings of US$81.4 billion, with an annual revenue of US$254.6 billion, an increase of 2.7% over the previous fiscal cycle.

Berkshire Hathaway Is Undervalued By 20%

The Berkshire Hathaway current valuation is $495 billion. If Berkshire Hathaway businesses are valued at 20 times operating earnings approximating the S&P 500 Index, then they would have an enterprise value of $480 billion.

In comparison, subtracting the float of $130 billion would then result in an equity value of $350 billion. Then adding $350 billion (businesses) to $385 billion (stock portfolio plus cash) results in an overall equity valuation of $715 billion. As such, the Berkshire Hathaway current valuation of $495 billion represents a 30% discount!

Berkshire Has Top Management

Berkshire Hathaway is a stock that is run by top management. Consequently, the huge advantage is that the management regularly optimizes the companies Berkshire Hathaway invests in so that you don’t have to. Basically, you can sleep well every night knowing that your investment is secure.

When Warren Buffett speaks, Wall Street and investors listen intently. That’s because Berkshire Hathaway has a track record few other money managers can match. Over the last 55 calendar years, Berkshire Hathaway’s stock rose at more than 20.3% annualized pace, versus 11.8% for the S&P 500. More than 20% annually for 55 years! In my opinion, this is one of the best investments of a lifetime. The best stock to invest in is BRK.B. I ask you to research Berkshire Hathaway, if you haven’t already, and add your comments below. 

Berkshire Hathaway Publicly Traded Portfolio

Below are the publicly-traded U.S. stocks owned by Warren Buffett’s holding company Berkshire Hathaway, as reported to the Securities and Exchange Commission in filings made available to the public. There are times when Berkshire asks for, and receives, the SEC’s permission to temporarily withhold data on some stock holdings.

Update March 2020. With the Covid-19 pandemic creating uncertainty around the world, it is unsurprising that many may have seen their top stocks underperform the benchmark indexes. Investing legend Warren Buffett is no exception. Indeed, it is reassuring that Berkshire Hathaway has managed to find value in this volatile environment.

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Many investors regularly look at investor Warren Buffett’s top holdings to see what they are and then to do their on research and decide if they like the value of these stocks. Berkshire Hathaway current top holdings by size are Bank of America, Apple, Coca-Cola, Kraft Heinz, American Express, Verizon, U.S. Bancorp, and General Motors.

Warren Buffett’s investment strategy is to build a portfolio of blue-chip companies with strong balance sheets, and then to hold this stock in BRK.B and invest with the right orientation over a long time frame. Apple is Berkshire Hathaway’s largest portfolio holding, comprising 49.1% of the portfolio. In addition, Buffett has held shares of Coca-Cola since the late 1980s; the company accounts for about 8.6% of Berkshire Hathaway’s portfolio. Furthermore, in 2011, Buffett began investing in Bank of America when Berkshire Hathaway purchased in a private offering 50,000 shares of the company’s preferred stock at a liquidation value of $100,000 per share.

Despite his unparalleled success, Buffett’s investment model has always been transparent, straightforward, and consistent. Fundamentally, he invests in fairly-priced, high-dividend paying blue-chip companies that feature strong balance sheets. Buffett buys such stocks with the intent to hang onto them over the long haul.

Listed below are the public and private businesses that add up to the best stock to invest in, which, in my opinion, is BRK.B.

Publicly Traded FIRMS Thru March 31, 2020

Company’s A Through L

• Amazon (AMZN) Holdings: 537,300 shares; Value: $1.3 billion
• Apple (AAPL) Holdings: 250.9 million shares; Value: $76.2 billion
• American Express Co. (AXP) Holdings: 151.6 million shares; Value: $13.2 billion
• Axalta Coating Systems (AXTA) Holdings: 24.3 million shares; Value: $460 million
• Bank of America Corp. (BAC) Holdings: 947.8 million shares; Value: $21.7 billion
• Bank of New York Mellon Corp. (BK) Holdings: 88.13 million shares; Value: $3.1 billion
• Biogen (BIIB) Holdings: 648,447 shares; Value: $250 million
• Charter Communications (CHTR) Holdings: 5.4 million shares; Value: $2.8 billion
• Coca-Cola Co. (KO) Holdings: 400 million shares; Value: $18.4 billion
• Costco Wholesale Corp. (COST) Holdings: (COST) 4.3 million shares; Value: $1.3 billion
• DaVita (DVA) Holdings: 38.1 million shares; Value: $3.1 billion
• General Motors Co. (GM) Holdings: 75 million shares; Value: $1.8 billion
• Globe Life (GL) Holdings: 6.3 million shares; Value: $484 million
• Johnson & Johnson (JNJ) Holdings: 327,100 shares; Value: $48.7 million
• JPMorgan Chase & Co. (JPM) Holdings: 60.1 million shares; Value: $5.6 billion
• Kraft Heinz Co. (KHC) Holdings: 325.6 million shares; value $9.6 billion
• Kroger (KR) 18.9 million shares; Value: $628 million
• Liberty Global (LBTYA, LBTYK) Holdings: 19.8 million shares of LBTYA, 7.3 million shares of LBTYK; Combined value $586 million
• Liberty Latin America (LILA, LILAK) Holdings: 2.7 million shares of LILA, 1.3 million shares of LILAK; Combined value: $39.4 million
• Liberty Sirius XM Group (LSXMK, LSXMA) Holdings: 31.1 million shares of LSXMK, 14.9 million shares of LSXMA; Combined value $1.5 billion

COMPANY’S M THrough W

• Mastercard (MA) Holdings: 4.9 million shares; Value: $1.4 billion
• Moody’s Corp. (MCO) Holdings: 24.7 million shares; Value: $6.2 billion
• Mondelez International (MDLZ) Holdings: 578,000 shares; Value: $29.2 million
• M&T Bank Corp. (MTB) Holdings: 5.4 million shares; Value: $560 million
• Occidental Petroleum (OXY) Holdings: 36.2 million shares; Value: $526 million
• Procter & Gamble Co. (PG) Holdings: 315,400 shares; Value: $36.5 million
• PNC Financial Services Group (PNC) Holdings: 9.8 million shares; Value: $1 billion
• Phillips 66 (PSX) Holdings: 227,436 shares; Value: $17.2 million
• Restaurant Brands International (QSR) Holdings: 8.4 million shares; Value: $432 million
• RH – Restoration Hardware (RH) Holdings: 1.7 million shares; Value: $268 million
• Sirius XM Holdings (SIRI) Holdings: 136.3 million shares; Value: $775 million
• StoneCo (STNE) Holdings: 14.2 million shares; Value: $396 million
• Store Capital Corp. (STOR) Holdings: 18.6 million shares; Value: $372 million
• Suncor Energy (SU) Holdings: 15 million shares; Value: $256 million
• Synchrony Financial (SYF) Holdings: 20.8 million shares; Value: $383 million
• Teva Pharmaceutical Industries (TEVA) Holdings: 43.2 million shares; Value: $498 million
• Traveler’s Companies (TRV) Holdings: 312,379 shares; Value: $30 million
• United Parcel Service (UPS) Holdings: 59,400 shares; Value: $5.6 million
• U.S. Bancorp (USB) Holdings: 150.1 million shares; Value: $5.2 billion
• Visa (V) Holdings: 10.6 million shares; Value: $2 billion
• Verisign (VRSN) Holdings: 13 million shares; Value: $2.8 billion
• Wells Fargo & Co. (WFC) Holdings: 345.7 million shares; Value: $8.8 billion

Berkshire Hathaway Privately Owned Companies

• GEICO, Gen Re, NRG, Berkshire Hathaway Assurance
• Utilities and Energy Group:
• Berkshire Hathaway Energy and Northern Powergrid
• Manufacturing, Service and Retailing:
• Recreational vehicles: Forest River Inc.
• Clothing: Union Underwear Corp., Fruit of the Loom, Garan, Fechheimer Brothers, Russell Corporation, H.H. Brown Shoe Group, Acme Boots, Brooks Sports, Justin Brands, Chippewa, Justin Boots, Justin Original Workboots, Nocona Boots, and Tony Lama Boots
• Building Products:
• Acme Building Brands, Benjamin Moore & Co., Johns Manville, MiTek Inc., Shaw Industries, Inc., Clayton Homes Inc.
• Flight Services:
• FlightSafety International Inc., and NetJets Inc.
• Retail:
• Nebraska Furniture Mart, RC Willey Home Furnishings, Star Furniture Company, Jordan’s Furniture, Inc, CORT Business Services, Ben Bridge Jeweler, Helzberg Diamonds, The Pampered Chief, Ltd., See’s Candies, Dairy Queen, Orange Julius, Karmelkorn, Oriental Trading Company, and Pilot Flying J
• Media:
• Buffalo Evening News, Buffalo Courier-Express, Business Wire, Omaha World-Herald, Richmond Times-Dispatch, Winston-Salem Journal, The Eagle, Waco Tribune-Herald, Tulsa World, Greensboro, North Carolina-based News & Record, Virginia’s Roanoke Times, Press of Atlantic City, and ABC affiliate WPLG
• Real Estate:
• Berkshire Hathaway’s Energy’s HomeServices of America, Home Capital Group Inc., Store Capital, and Clayton Group
• Other Non-insurance:
• From 1986 to 2003: Albecca Inc., CTB International Corp., McLane Company, Scott Fetzer Companies including: Kirby Home Cleaning Systems, Wayne Water Systems, Ginsu Knives, and World Book Encyclopedia.
• In 2007: acquired TTI, Inc, and Marmon Group
• In 2014: Berkshire Hathaway Automotive created through the acquisition of Van Tuyl Group; acquired Duracell from Procter & Gamble in an all-stock deal.

Finance and Financial Products

Clayton Homes

Investments

• Russell Corporation including Spalding NBA Official Basketballs, and BIKE Athletic Company
• Lubrizol Corporation
• Preferred stock in Wrigley
• Goldman Sachs
• GE
• Burlington Northern Santa Fe Corporation
• Indian insurance BerkshireInsurance.com
• H.J. Heinz Co.
• Berkshire owns 1.74 million shares of Gannett, and Precision Castparts Corp.
• 2020: Berkshire added a position in the Q2 2020 of 20 million shares in mining company Barrick Gold
• 2020: Q3 2020 agreed to buy Dominion Energy’s natural gas transmission and storage operations.
• Between September 2019 and August 2020, Berkshire purchased more than 5% of the outstanding stock of each of the five largest Japanese general trading companies: Itochu, Mitsubishi, Mitsui Sumitomo, and Marubeni.

The Rich Didn’t Get Wealthy By Investing In Stocks

Have you ever wondered how the wealthiest investors in the world became wealthy? For example, if you look at Warren Buffett you might think that the wealthiest investors in the world enjoyed their success due to wise investing decisions.

However, despite the fact that the best stock to invest in is BRK.B, the reality is that Warren Buffett is a rare exception. Buffett’s investment returns over the decades have been nothing short of phenomenal. His investments over the years are the reason for his success. While replicating his success might not be possible, you can emulate his strategies to become a successful investor.

One of the primary reasons for Buffett’s success has been his ability to recognize the deeper value behind a company. The best stock to invest in is BRK.B, but understand that Warren Buffett invests in businesses that he understands and knows that the inherent value of the business is more than its evaluation at the time of investing. As a result, all the work that Warren Buffett and his team of people do will add up to the best stock to invest in, which is BRK.B.

Create A Product Or Service To Add Value

Contrary to popular belief, the wealthiest investors did not use stock market investing to find the best stock to invest in such as BRK.B in order to maintain the wealth they had already acquired. Almost all of them made their wealth by starting companies that were very successful or some have received an inheritance.

I invite you to read my FinancialGoodness.com: About The Writer and scroll down to “Think of Knowledge As A Tree.” One of the entrepreneur’s I have studied is Ryan Daniel Moran.This entrepreneur realized that you have to strategically position yourself to create value in service to other people. Please read my blog on how to Build Unlimited Wealth With Money’s Untold Truth. To summarize this article, find the biggest problem you can think of and then solve that problem. You have to create a product or a service that people really want and then think of a way to deliver it to them. This is the secret for creating unlimited wealth.

Imitate Strategies Of Successful Investors

Once your business is profitable, you can then use some revenue to maintain your wealth that you have acquired over the years. You can then imitate the strategies of successful investors. In this way you can use your wealth by investing in wise investment moves in the stock market. The combination of these two strategies, of having a profitable business and then investing in the markets, is really the best way to maintain and to increase your wealth over time.

Consequently, have you ever thought about the relationship between money and wealth? Specifically the fact that money is just paper with a number on it. Nevertheless, people have equated money to value.

In the end, perhaps this was never about the money. Let’s face it, it was all about the freedom that you were looking for. Accordingly, if you make wise investments you will have the ability to do whatever you want, whenever you want. Thus I am talking about your choice of freedom.

This is the dream of freedom that you were seeking all along. Truly I challenge you to do it and have the courage, the belief, and the strength to make this your reality! When you do this, you will have completely conquered how to build unlimited wealth with money’s untold truth because now you know the secret to having a lifestyle of richness.

Conclusion

I hope you enjoyed my research on the best investment to make. If a stock market crash happens again or a big dip occurs, the long-term buy and hold value stock is apparent to me. My years of research tell me again and again that the best stock to invest in is BRK.B.

To conclude, I like the peace of mind that the BRK.B stock has with it. In the same way, I can invest in BRK.B and rest good every single night. In the final analysis, I know that the leading management at Berkshire Hathaway will look after my investment and make sure it grows slowly over time for years to come.

“An investment in knowledge always pays the best interest.”

– Benjamin Franklin

Matthew 7:8 NLT. For everyone who asks, receives. Everyone who seeks, finds. And everyone who knocks, the door will be opened.

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Last Updated on December 16, 2024 by Financial Goodness