The two biggest objections to investing in Berkshire Hathaway (NYSE:BRK.A) (NYSE:BRK.B) are that it’s too large to earn good returns and that it depends too much on the stock-picking and company-acquiring skills of Warren Buffett and Charlie Munger, who are among the oldest executives running a major business today.
Will it ever earn as much as it did in the past?
I believe it can. When you understand the true nature of its returns those risks are not as big as they seem.
The first is certainly true in part. Buffett has said at times that if he was only managing $10m he could easily earn 50 – 70% per year through value investing and merger arbitrage.
Any investor who’s not happy with returns under 50% per year is in for some bad news. The real question is whether it can earn returns higher than an index fund.
Many investors believe that this is only possible as long as it’s run by Buffett and Munger. We don’t know how long that will be. If that happens to be another 10 or 20 years then it could still be a great opportunity. And if not?
Best Warren Buffett Stocks To Invest In 2018: OneBeacon Insurance Group, Ltd.(OB)
- [By Monica Gerson]
The list of below stocks is notable as the shares have traded on sequentially increasing volume spanning the trading days from September 16 to September 20:
Best Warren Buffett Stocks To Invest In 2018: Modine Manufacturing Company(MOD)
- [By Monica Gerson]
Modine Manufacturing Co. (NYSE: MOD) is projected to post its quarterly earnings at $0.32 per share on revenue of $351.33 million.
Navios Maritime Holdings Inc. (NYSE: NM) is expected to report a quarterly loss at $0.37 per share on revenue of $101.51 million.
Best Warren Buffett Stocks To Invest In 2018: Firsthand Technology Value Fund, Inc.(SVVC)
- [By Hibah Yousuf]
Similarly, Twitter is also the biggest holding in the Firsthand Technology Value Fund (SVVC). With just over 1 million shares of the social media platform, Twitter represents nearly 11% of the total portfolio as of mid-year. Shares of Firsthand Technology Value jumped more than 6% Friday.
Best Warren Buffett Stocks To Invest In 2018: Pampa Energia S.A.(PAM)
- [By Lisa Levin]
Friday afternoon, the utilities sector proved to be a source of strength for the market. Leading the sector was strength from Cia Energetica de Minas Gerais CEMIG-ADR (NYSE: CIG) and Pampa Energia S.A. (ADR) (NYSE: PAM).
- [By Lisa Levin]
On Tuesday, utilities shares slipped by just 0.5 percent. Meanwhile, top gainers in the sector included Pampa Energia S.A. (ADR) (NYSE: PAM), up 2 percent, and Chesapeake Utilities Corporation (NYSE: CPK) up 3 percent.
Best Warren Buffett Stocks To Invest In 2018: Broadcom Corporation(BRCM)
- [By Shauna O’Brien]
Susquehanna reported on Tuesday that it has raised its rating on Broadcom Corporation (BRCM).
The firm has upgraded BRCM from “Neutral” to “Positive,” and has lifted the company’s price target from $33 to $35. This price target suggests a 23% upside from the stock’s current price of $26.91.
Analyst Chris Caso commented: “Our downgrade of BRCM in May was predicated on already high Street expectations on handsets and no notable improvement in networking to drive upside. We think expectations and the stock price have now been sufficiently reset ahead of what we expect to be catalysts in 2014 including the iPhone 6 product cycle, potential improvement in networking and the impact from the recent Renesas acquisition. In addition, after several years of overspending on their handset initiatives, we think we are now closer to the point where the company either captures a return on that investment or is forced to moderate spending either of which benefit profitability. We see the upcoming December analyst meeting as a potential intermediate catalyst.”
Broadcom shares were up 38 cents, or 1.41%, during pre-market trading Tuesday. The stock is down 19% YTD.