This Is the One Stock Warren Buffett Keeps Buying, Regardless of Valuation
2024-10-11 12:06:00
While there are a number of prominent money managers on Wall Street, none are followed as closely by the investment community as Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett.
One reason investors gravitate to the Oracle of Omaha is his track record. Though he’s not infallible, Buffett has overseen a nearly 5,500,000% aggregate return in his company’s Class A shares (BRK.A) since becoming CEO in the mid-1960s. On an annualized total return basis, which includes dividends, Berkshire Hathaway has practically doubled up the return of the benchmark S&P 500 spanning six decades.
Because Berkshire Hathaway doesn’t pay a dividend, conducting buybacks is the easiest way for Buffett to reward his company’s shareholders and incent long-term thinking. Steadily reducing the company’s outstanding share count is incrementally increasing the ownership stakes of long-term investors.
To boot, companies with steady or growing net income, like Berkshire, tend to enjoy an EPS boost with fewer shares outstanding. This can make their stock more attractive to investors.
With Berkshire Hathaway sitting on an all-time record $276.9 billion in cash, cash equivalents, and U.S. Treasuries, as of the end of June, the Oracle of Omaha has every incentive to keep buying back his company’s stock, regardless of valuation.
Don’t miss this second chance at a potentially lucrative opportunity
Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.
On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:
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Amazon: if you invested $1,000 when we doubled down in 2010, you’d have $20,855!*
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Apple: if you invested $1,000 when we doubled down in 2008, you’d have $43,423!*
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Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $392,297!*
Right now, we’re issuing “Double Down” alerts for three incredible companies, and there may not be another chance like this anytime soon.
*Stock Advisor returns as of October 7, 2024
Bank of America is an advertising partner of The Ascent, a Motley Fool company. Sean Williams has positions in Bank of America. The Motley Fool has positions in and recommends Apple, Bank of America, Berkshire Hathaway, and Chevron. The Motley Fool recommends Occidental Petroleum. The Motley Fool has a disclosure policy.
This Is the One Stock Warren Buffett Keeps Buying, Regardless of Valuation was originally published by The Motley Fool
