Why Berkshire Is Poised to Outperform

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, insurance and holding company Berkshire Hathaway has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Berkshire and see what CAPS investors are saying about the stock right now.

Berkshirefacts

Headquarters (founded)

Omaha, Neb. (1889)

Market Cap

$255.6 billion

Industry

Conglomerates

Trailing-12-Month Revenue

$162.5 billion

Management

Chairman / CEO Warren Buffett (since 1970)
Vice Chairman Charles Munger (since 1978)

Return on Equity (average, past 3 years)

8%

Cash / Debt

$47.0 billion / $62.7 billion

Competitors

Blackstone Group
HM Capital Partners
KKR


Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 98% of the 6,854 members who have rated Berkshire believe the stock will outperform the S&P 500 going forward.

Just last month, one of those Fools, neocolonialist, succinctly summed up the Berkshire bull case for our community:

Built in diversification (they own almost everything now), great management at virtually all levels, low debt ... intentionally great return to investors, great track record, lots of cash, and insurance biz just mints money. About as close to a can't lose company as you can get. When Buffett retires or passes the stock will take a hit, but with the great management they already have in place, that will just signal a great time to buy more. Long term bull here.

In fact, thanks to the savvy of investing legend Warren Buffett, Berkshire Hathaway's book value per share has grown a mind-blowing 586,817% over the past 48 years. But with Buffett aging and Berkshire rapidly evolving, is this insurance conglomerate still a buy today? In The Motley Fool's premium report on the company, Berkshire expert Joe Magyer provides investors with key reasons to buy as well as important risks to watch out for. Click here now for instant access to Joe's take on Berkshire!

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.

The article Why Berkshire Is Poised to Outperform originally appeared on Fool.com.

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends Berkshire Hathaway. The Motley Fool owns shares of Berkshire Hathaway. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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