Berkshire Hathaway stock is legendary. If you thought Berkshire Hathaway shares were expensive 20 years ago, you would be bashing your head against the wall now because it has not just kept up with the overall appreciation of the Dow Jones Industrial Average, but it has actually beaten the index.
Led by legendary investor Warren Buffett, it should not be a surprise. Warren Buffett has an uncanny knack for identifying value. The great thing about Warren Buffett’s stock picks in terms of both public and private companies is that he is able to see value not just today, but 10 to 20 years in the future. Warren Buffett’s investing strategy is buy and hold. He does not play stocks based on momentum and does not get carried away by trends. He does not follow what is hot. Instead, he focuses on the fundamental value a particular company brings to a table. This is why it is a good idea if you have enough resources to veer away from buying mutual funds and buy Berkshire Hathaway stocks instead.
The only down side that I see is that Warren Buffett is not getting any younger. He is very old and his partner, Charlie Munger, is 91 years old. There is always the issue of mortality if you are going to be betting on a Berkshire Hathaway stock. However, considering its past track record and regardless of whether the US economy is up or it is down, Berkshire Hathaway is a solid play. Of course, all of these goes out the window if mortality issues appear.