Want to keep beating the S&P; 500 and at much lower risk? Bet on Buffett, and perhaps this younger clone, says this...
Optimism from a bullish start to the week is set to spill over into Tuesdays session, with stock futures tearing higher. Thats as Goldman Sachs and Netflix later will keep the earnings ball rolling.
Some are attributing the positive mood to a report that the Bank of England may shelve a quantitative tightening plan, with hopes the Fed could follow. Others say, short covering, technical flows, yadda yadda.
At the end of the day, all that is just a distraction for investors who really need to focus on a portfolios stock picks, as Daniel Gladis, founder of the Malta-based Vltava fund, reminds clients in his recently-published third-quarter letter.
And in our call of the day, Gladis says investors need to get Berkshire Hathaway BRK.A, +1.54% BRK.B, +1.60% in their portfolio if they havent already. Warren Buffetts conglomerate has been Vltavas oldest position 11 years and mostly largest throughout that time.
If I had to invest all my money in a single stock and could not touch it at all for 510
years, then I would choose BRK without any hesitation, he writes, noting the conglomerates investments are above average as far as quality, efficiency in capital allocation and balance sheets, as well as offering low-business risk.
Gladis says Berkshires earnings power is somewhere atop $50 billion per year, giving the entire company a market capitalization of $590 billion, and leaving it to trade at less than 12 times annual earnings.
It is very realistic to expect BRKs stock price to grow at an average rate of about
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