Berkshire Hathaway (BRK.A and BRK.B) is a conglomerate holding company led by legendary investor Warren Buffett. The company operates in various industries, including insurance, energy, retail, and manufacturing, and owns subsidiaries such as GEICO, Duracell, and Dairy Queen.
Despite the pandemic-induced market volatility, Berkshire Hathaway has remained a popular investment choice for many investors. In fact, BRK.B has been one of the most searched-for stocks on Zacks.com lately.
Many investors are drawn to Berkshire Hathaway because of its strong financials and the reputation of its leader, Warren Buffett. Berkshire Hathaway has a long history of generating consistent profits and outperforming the market over the long term.
In addition, Berkshire Hathaway has a highly concentrated portfolio, which means that the company invests heavily in a small number of stocks. This strategy has paid off for Buffett in the past, as he has been able to generate significant returns by making smart investments in companies like Apple and Amazon.
One of the reasons why Berkshire Hathaway has been so successful is because of its conservative investment approach. The company tends to invest in stable, well-established companies with strong financials and a proven track record of success.
For example, Buffett has long had a soft spot for bank stocks, especially when they're dirt cheap. He believes that banks are a good long-term investment because they are essential to the economy and tend to generate consistent profits.
Despite its conservative investment approach, Berkshire Hathaway is not afraid to take risks when the opportunity arises. For example, the company made a bold move in 2020 by investing $10 billion in the natural gas industry.
Another reason why investors are drawn to Berkshire Hathaway is because of its commitment to diversification. Buffett has long been a proponent of the idea that investors should not put all of their eggs in one basket.
This philosophy has served Berkshire Hathaway well over the years, as the company has been able to weather market downturns and generate consistent returns over the long term.
If you're interested in investing in Berkshire Hathaway, there are a few things to keep in mind. First, it's important to do your research and understand the company's investment strategy and financials.
In addition, it's a good idea to consider investing in BRK.B, which is the more affordable of the two Berkshire Hathaway stocks. However, it's important to note that BRK.B still trades at a relatively high price, so it may not be suitable for all investors.
Overall, Berkshire Hathaway stock is a solid choice for conservative investors who are looking for a stable, long-term investment. With its strong financials, diversified portfolio, and proven track record of success, it's no wonder why so many investors are drawn to this iconic company.