In this article, we will discuss the 5 best forever stocks to buy now. If you want to see some more of the valuable companies, go directly to 12 Best Forever Stocks to Buy Now.
5. Berkshire Hathaway Inc. (NYSE:BRK-B)
Number of Hedge Fund Holders: 109
Berkshire Hathaway Inc. (NYSE:BRK-B) is an Omaha, Nebraska-based conglomerate with a diversified range of businesses ranging from insurance, banking, and railroad services. Furthermore, the company has taken a significant stake in the leading corporations of the world through its investment arm.
The company is led by Warren Buffett, who is considered a wizard in finding the best long-term stocks by employing the philosophy of value investing. On September 21, James Shanahan at Edward Jones upgraded Berkshire Hathaway Inc. (NYSE:BRK-B) stock from a Hold to a Buy rating.
Between 2016-2021, Berkshire Hathaway Inc. (NYSE:BRK-B) has observed its operating cash flow rise at a compound annual growth rate (CAGR) of 3.8% from $32.64 billion to $39.41 billion. The stock currently trades at 1.5x book value and 2.6x sales. Keeping these factors in consideration, analysts think Berkshire Hathaway Inc. (NYSE:BRK-B) should be trading at more than double its current share price. Over the next five years, Berkshire is expected to expand its annual revenues by 10% each year due to growth in its energy and manufacturing businesses.
Here’s what Berkshire Hathaway said about Berkshire Hathaway Inc. (NYSE:BRK-B) in its Q4 2021 investor letter:
“BERKSHIRE HATHAWAY INC.
To the Shareholders of Berkshire Hathaway Inc.:
Charlie Munger, my long-time partner, and I have the job of managing a portion of your savings. We are honored by your trust.
Our position carries with it the responsibility to report to you what we would like to know if we were the absentee owner and you were the manager. We enjoy communicating directly with you through this annual letter, and through the annual meeting as well.
Our policy is to treat all shareholders equally. Therefore, we do not hold discussions with analysts nor large institutions. Whenever possible, also, we release important communications on Saturday mornings in order to maximize the time for shareholders and the media to absorb the news before markets open on Monday.
A wealth of Berkshire facts and figures are set forth in the annual 10-K that the company regularly files with the S.E.C. and that we reproduce on pages K-1 – K-119. Some shareholders will find this detail engrossing; others will simply prefer to learn what Charlie and I believe is new or interesting at Berkshire.
Alas, there was little action of that sort in 2021. We did, though, make reasonable progress in increasing the intrinsic value of your shares. That task has been my primary duty for 57 years. And it will continue to be.
What You Own
Berkshire owns a wide variety of businesses, some in their entirety, some only in part. The second group largely consists of marketable common stocks of major American companies. Additionally, we own a few non-U.S. equities and participate in several joint ventures or other collaborative activities.
Whatever our form of ownership, our goal is to have meaningful investments in businesses with both durable economic advantages and a first-class CEO. Please note particularly that we own stocks based upon our expectations about their long-term business performance and not because we view them as vehicles for timely market moves. That point is crucial: Charlie and I are not stock-pickers; we are business-pickers…” (Click here to see the full text)
