Starter Stock Portfolio: 12 Safe Stocks to Buy

7. Berkshire Hathaway Inc. (NYSE:BRK-B)

No. of Hedge Fund Holders: 131

Berkshire Hathaway Inc. (NYSE:BRK-B) is a diverse holding company operating globally through numerous subsidiaries. The company’s core businesses include insurance, freight rail transportation in North America, and utilities. Beyond these, Berkshire Hathaway has significant manufacturing operations producing confectionery, specialty chemicals, aerospace and power generation components, and building materials. Alternatively, it has a strong presence in consumer goods, including recreational vehicles, apparel, footwear, toys, jewelry, & batteries. Lastly, the company engages in distribution (electronics, groceries), franchising (quick service restaurants), logistics, aviation training, and retail (automobiles, furniture, appliances, and various consumer goods).

Berkshire Hathaway Inc. (NYSE:BRK-B)’s results for Q4 2024 showed revenue of $94.92 billion and an EPS of $6.73 billion. What’s unique about the company’s results is that it has cash reserves of $325 billion. The company has a unique strategy of carrying out buybacks, i.e., essentially repurchasing and retiring older shares of Berkshire, leaving each remaining share worth more.

Berkshire Hathaway Inc. (NYSE:BRK-B) has a vast and varied portfolio that reflects a long-term investment strategy across a multitude of industries. Its long-standing Chairman, Warren Buffet, is hailed as the “Oracle” of Wall Street. His annual newsletter to shareholders is read by millions of stock market enthusiasts across the globe. This highlights investors’ belief in following the investment strategies adopted by the company for sustained growth. In a letter to annual shareholders in February, Mr. Hathway stated:

“Despite what some commentators currently view as an extraordinary cash position at Berkshire, the great majority of your money remains in equities. That preference won’t change.”

The company is an investment powerhouse that continues to acquire companies that add value to its shareholders. More importantly, management knows when to identify opportunities to divest. This was carried out in 2024, long before any other investment firm. Berkshire Hathaway Inc. (NYSE:BRK-B) has a current upside of 1.71%, with a consensus of the twelve-month trading price of $502, which makes it one of the best beginner stocks to monitor.