If I Could Only Buy and Hold a Single Stock, This Would Be It

3 months ago 22

David Butler, The Motley Fool

Tue, Apr 29, 2025, 5:31 AM 4 min read

One stock. Imagine that's each you get. I constitute astir Berkshire Hathaway (NYSE: BRK.B) a lot, and it's for bully reason. Not lone is the concern conglomerate tally by arguably the top capitalist of each time, Warren Buffett, but the institution is besides sitting connected an tremendous currency heap that sets it up perfectly for immoderate large fallout successful the broader market. Long communicative short, this puppy is primed for success, and has the ammo disposable to proceed making monumental moves adjacent aft Buffett's tenure is over.

Berkshire shares person outpaced the S&P 500 by 90.07% implicit the past 5 years (at the clip of writing), and the spread is adjacent wider the further backmost you go. Now, I cognize what you're thinking. This is due to the fact that of Warren Buffett and the precocious Charlie Munger. That's surely true, but I don't deliberation Berkshire's thrust is going to extremity simply if Buffett is nary longer astatine the helm. The concern conglomerate has truthful overmuch currency connected hand, that it seems primed to instrumentality vantage of immoderate weaknesses successful the market.

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Berkshire's holdings are 1 of my superior reasons for saying if you lone held 1 stock, this is the one. It gives you vulnerability overmuch successful the mode an ETF might, but the dispersed of holdings are arguably chosen by the champion concern squad successful the world. The biggest quality is you mostly person a strict committedness to worth investing. By owning Berkshire Hathaway, you person concern vulnerability to Apple (NASDAQ: AAPL), American Express (NYSE: AXP) and Coca-Cola (NYSE: KO) conscionable to sanction a few.

Let's not hide that Berkshire Hathaway has overmuch much than its banal holdings. It owns immoderate iconic companies outright. Think GEICO, Dairy Queen, a big of car dealerships. Most notable successful my sentiment are the security businesses. Berkshire has famously utilized the "float" from its security businesses to put successful stocks and bargain different companies. This worldly remains a important portion of mundane life, and positions Berkshire to proceed benefiting from its presumption wrong the industry.

If you privation to beryllium invested successful the champion opportunities successful the market, without having to bash each the enactment yourself, Berkshire Hathaway shares are arguably the champion bet.

Berkshire Hathaway finished 2024 with $334.2 cardinal successful cash/short word investments. Simply put, that's an unthinkable sum of money. Given the fallout since past successful the market, it would look that Berkshire and Buffett timed their currency presumption perfectly. It volition beryllium precise absorbing to spot if the steadfast ends up buying during the existent marketplace woes that are stemming from President Trump's tariff war. In world though, the institution has the positioning to hold it out, and spot what happens.