Best Growth Stocks for Retirement: Berkshire Hathaway (BRK.B)
It might seem odd to include Berkshire Hathaway Inc. (NYSE:BRK.B) — which is run by legendary value investor Warren Buffett — on a list of growth stocks. But in looking at the company’s returns, it only makes sense.
From 1964 to 2016, Berkshire Hathaway’s book value was up an eye-popping 884,319% and its market value 1,972,595%. To put that in perspective, the S&P 500 is up about 12,717% over the same period.
Buffett has also never paid a dividend, believing that the cash would be better spent on new investment opportunities by Buffett himself. In retrospect, it’s hard to argue with him.
Despite its stodgy, conservative reputation, Berkshire Hathaway is very much a growth stock. Unfortunately, Mr. Buffett won’t be with us forever. I don’t believe the Oracle will ever hang up his hat. He’s far more likely to die with his boots on, doing what he does best until the very end. But the man is also 86 years old, so we have to ponder life after Buffett.
Buffett has built a solid portfolio of operating businesses run by capable people and has already started delegating some of the day-to-day portfolio management to Ted Weschler and Todd Combs. And Buffett is famous for preferring “idiot-proof” businesses that should perform well long after the Oracle is no longer with us.
In his own words, “When a management with a reputation for brilliance tackles a business with a reputation for bad economics, it is the reputation of the business that remains intact.”
Berkshire should be a solid choice as a long-term growth stock for retirement.