If Given the Chance to Purchase and Hold a Single Stock Individually, This Would Be My Choice
A peek into my investment portfolio reveals over 40 different assets, mostly in individual stocks and ETFs. One standout investment that'd top my list if I had to pick just one? Berkshire Hathaway, no doubts about it.
Berkshire Hathaway isn't your typical investment. It's more like a powerhouse of ventures—more than 60 subsidiaries, each a star in its own right. Think household names like GEICO, Duracell, Dairy Queen, and Fruit of the Loom. And then there's the energy business, the railway, and a whole lot more. Plus, it boasts a mind-blowing stock portfolio worth a whopping $300 billion, filled with heavy-hitters like Apple, Coca-Cola, and American Express, to name a few.
In a tough economy, Berkshire's businesses are like a survival kit. Take GEICO, for instance. Auto insurance bills keep coming even when the going gets tough, and the same goes for Berkshire Hathaway Energy and BNSF Railroad. These subsidiaries make Berkshire quite the resilient investment.
To top it all, Berkshire holds a basket of cash and short-term investments reaching beyond $325 billion. Talk about being prepared for any storm! With more cash than a handful of Fortune 100 companies, Berkshire could potentially snap up a Chevron or Cisco if needed.
Warren Buffett and his team are savvy investors, and there's no rush to blow the cash stash. For now, they're content earning over $10 billion in interest annually. But if the economy takes a nosedive, Berkshire's amassed resources are just a lever away from turning things around.
Best of all, Berkshire comes at an attractive price. With a market cap of $995 billion, Berkshire's stock is valued for its operating businesses at just $374 billion, after subtracting its cash reserves and stock portfolio value. This translates into a relatively cheap valuation – only 12.9 times earnings.
In essence, Berkshire is an investment in more than a hundred subsidiary companies and common stocks. Its rock-solid financial health, diversified portfolio, and impressive management team have set it up as a resilient and valuable investment even in challenging economic times.
Berkshire Hathaway's abundant cash reserves and short-term investments make it a strong choice for those looking to invest in finance, offering a sense of security during tough economic times. Warren Buffett and his team's strategic approach to investing money in a diversified portfolio, including both Berkshire's subsidiaries and common stocks, has contributed to its resilient and valuable status in the investment world.
