Why Berkshire Hathaway is Crazy Cheap Today
In today's edition, Austin Smith gives us his quick take on Berkshire Hathaway. The massive holding company has ballooned in size and is now as big as conglomerate juggernaut General Electric (NYS: GE) . Much like GE, Berkshire Hathaway seems to span entire economies with positions in housing, railroads, insurance, and confectionaries, just to name a few. This massive size has led many to think the company is now a lumbering investment with few catalysts, but Austin disagrees.
The stable of quality companies represented in Berkshire's portfolio is stunning as well. Longtime essentials like Procter & Gamble (NYS: PG) and Johnson & Johnson (NYS: JNJ) benefit from huge economic moats and industry-leading brand strength under each banner. Buffett's recent purchase of a large percentage of IBM (NYS: IBM) , his first foray into technology, indicates he too is willing to go outside of his comfort zone for growth.
The best part of all of this? Berkshire is cheap right now. Crazy cheap. So cheap, in fact, that Buffett himself recently indicated he'd be interested in buying back shares. Watch the video below to find out more.
For all the praise we can heap on Berkshire Hathaway, there is one glaring negative: They still don't pay a dividend. If you're the type of investor who loves regular quarterly payouts, you should take a look at our special free report,"Secure Your Future With 11 Rock-Solid Dividend Stocks." These dividend-payers are time-tested and Fool approved. You can uncover them today by clicking here. Don't worry -- the report is 100% free.
At the time this article was published Austin Smith owns Berkshire Hathaway B class shares. The Motley Fool owns shares of Johnson & Johnson, International Business Machines, and Berkshire Hathaway.Motley Fool newsletter serviceshave recommended buying shares of Procter & Gamble, Berkshire Hathaway, and Johnson & Johnson; and creating a diagonal call position in Johnson & Johnson. Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.
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