Stocks to Buy: Berkshire Hathaway (BRK.B)
Finally in our list of stocks to buy and hold forever, we have the great Berkshire Hathaway (BRK.B). The main appeal actually isn’t that Berkshire Hathaway is run by Warren Buffett, though I’m sure people will worry when he’s gone. The core insurance business is thriving, and it continues to power BRK.B stock.
A properly managed insurance company will always yield strong and consistent yields, and nobody is better at insurance than Berkshire. The company has been doing it for so long. But surrounding Berkshire’s insurance company are dozens of other companies that I believe more accurately represent America than the Dow Jones 30.
The pure diversification of businesses helps insulate BRK.B from long-term pain. In fact, banks went to Berkshire to shore up their balance sheets during the financial crisis. That’s a company you want to be with.
As of this writing, Lawrence Meyers was long BRK.B. He is president of PDL Broker, Inc., which brokers financing, strategic investments and distressed asset purchases between private equity firms and businesses. He also has written two books and blogs about public policy, journalistic integrity, popular culture, and world affairs. Contact him at firstname.lastname@example.org and follow his tweets @ichabodscranium.