#7 - Berkshire Hathaway (NYSE:BRK.B)
If you want to invest like Warren Buffett, putting $5,000 in Berkshire Hathaway Inc. (NYSE: BRK.A, BRK.B) is a straightforward choice. Investors can also buy shares of the company through Class A shares (BRK.A) and Class B shares (BRK.B). Some of the stocks in this presentation are also owned by Berkshire Hathaway.
The B shares are more accessible for most investors. In this example, $5,000 can buy over 10 shares as of September 5, 2024. However, the Class A shares do give investors more voting rights if that’s important to you.
Either way, you’re investing in the companies that define Buffett’s investment philosophy. And you’re getting those shares at a price-to-earnings (P/E) ratio of around 13x, which is well below the average P/E of the S&P 500 stocks, which is around 21x.
Interestingly, as much as Buffett loves collecting dividends on the stocks he owns, neither the Class A nor Class B shares offer a dividend. But the fund efficiently reinvests that money back into the business.
About Berkshire Hathaway
Berkshire Hathaway Inc, through its subsidiaries, engages in the insurance, freight rail transportation, and utility businesses worldwide. The company provides property, casualty, life, accident, and health insurance and reinsurance; and operates railroad systems in North America. It also generates, transmits, stores, and distributes electricity from natural gas, coal, wind, solar, hydroelectric, nuclear, and geothermal sources; operates natural gas distribution and storage facilities, interstate pipelines, liquefied natural gas facilities, and compressor and meter stations; and holds interest in coal mining assets.
Read More - Current Price
- $468.10
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 1 Buy Ratings, 1 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $457.50 (2.3% Downside)
Some investors prefer to invest in stocks through exchange-traded funds (ETFs) or mutual funds. In fact, many employer 401(k) or IRA accounts don't allow individual stock investing. If this is money you need for retirement, the tax benefits of opening a 401(k) or IRA can be significant.
However, when it comes to fund investing, you must take the bad with the good. And it may have you including stocks that don't fit your investment goals or values. Putting all of your money into one or two stocks carries risk, but $5,000 is a sizable position that you can let work for you in individual stocks without having to assume outsized risk.
Our goal at MarketBeat is to help you not only identify those opportunities but give you the tools to keep you in control of your investments. That includes access to My MarketBeat to keep track of the stocks in your portfolio or your watchlist(s). You can also use tools like our Stock Screener to help find new investment opportunities.
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