Warren Buffett’s 10 New Stock Picks

4. Heico Corp (NYSE:HEI)

Shares held by Berkshire Hathaway: 1.05 million

Stake Acquired: Q2 2024

During the second quarter of 2024, Berkshire added 1.05 million shares of Heico Corp (NYSE:HEI) to its equity portfolio. Heico is an aerospace and defense company that provides aftermarket parts and repair solutions for aircraft both commercial and military, and also produces electronic products like infrared cameras, power converters, power supplies, memory modules, digital recorders and others.

Similar to other companies that we have covered in this list, Heico Corp (NYSE:HEI) ticks many boxes that Warren Buffett is looking for in an investment. The company has seen strong revenue growth in the past several years, with its top line surging from $1.87 billion in 2023 to $2.97 billion last year. Its bottom line also seen similar growth. For the latest quarter, Heico Corp (NYSE:HEI) reported EPS of $0.97, which was higher than the consensus estimate of $0.92, while its revenue of $992.25 million was slightly lower than expectations. In addition to growing earnings, Heico Corp (NYSE:HEI) has a debt-to-equity of 0.64 and a debt to EBITDA of 2.1.

Moreover, Heico Corp (NYSE:HEI) operates in an industry with high barriers to entry, which is also a plus, while its exposure to aerospace and defense implies that the company will benefit solid demand for years to come.