If you aren’t an investing genius, that’s okay, because you can invest in a company whose CEO is one — Warren Buffett, asserts Todd Shaver, growth stock expert and editor of BullMarket.
With Buffett’s investing prowess, Berkshire Hathaway (BRK.B) has produced an outstanding record, reaching an all-time high of $236 this month, and it’s not done yet.
The company’s operations span Insurance, Railroads, Utilities, Energy, Industrial, Consumer Products, Retail — if it makes money, Berkshire is involved. It also owns significant interests in companies like American Express (AXP), Apple (AAPL), Bank of America (BAC), and Coca-Cola (KO).
Don’t think of this is a "closet index fund". This is the actual stock of the firm — Berkshire Hathaway class A (BRK.A) that is currently trading for $344,000 a share. But with the class B shares you can buy a piece of Warren Buffett for just $228.
How is the company spending its huge cash stockpile ($145 billion)? Well, in 3Q20, it purchased $9 billion worth of their own shares. If Warren Buffett thinks his own stock is undervalued, who are we to argue?
He also shelled out $5 billion to buy stock in four pharmaceutical companies – AbbVie (ABBV), Bristol Myers Squibb (BMY), Merck (MRK), and Pfizer (PFE). The company has the resources to make this kind of investment where it can bet on a range of companies rather than just one.
The Oracle of Omaha has built up a most impressive — some say, “the most impressive" — track record over six decades. We currently have a $255 per share target price, but we can’t see ever parting with the stock.