Growth Stock Portfolio: 12 Stock Picks By Warren Buffett

4. HEICO Corporation (NYSE:HEI)

5-year average revenue growth (YoY): 14.43%

Warren Buffett’s Growth Stock Portfolio includes HEICO Corporation (NYSE:HEI), which is a supplier to the aerospace and defense industries that specializes in producing specialized replacement parts for commercial aircraft and defense product components. It is divided into two parts: the flight support group (FSG) and the electronic technologies group (ETG), which provide varying degrees of support to the defense and aerospace industries. The company consistently pursues acquisitions, concentrating on businesses in related or nearby industries that have significant cash flow and promising future growth.

HEICO Corporation (NYSE:HEI)’s ability to supply components for aircraft and systems at later phases of their service life is often limited by long-term service contracts with engine OEMs or lease agreements designed to preserve the aircraft’s resale value, which is why the majority of operators of newer aircraft continue to use OEM parts.

HEICO Corporation (NYSE:HEI) is also acknowledged as a key player in the space industry, having supplied vital mission components for India’s Chandrayaan-3 spacecraft, which landed on the Moon in 2023.

HEICO Corporation (NYSE:HEI) released strong results for the full year 2024 on December 17. The company’s net income increased 27% yearly to a record $514.1 million. The firm also announced a semiannual cash dividend of 11 cents per share. This was HEICO’s 93rd consecutive semiannual cash dividend since 1979, showing the company’s steadfast dedication to shareholder returns.