Looking for the Next Berkshire Hathaway?

The following video is part of our "Motley Fool Conversations" series, in which senior analyst Matt Argersinger and analyst Paul Chi discuss topics across the investing world.

Since taking over in 1965, Warren Buffett has grown Berkshire Hathaway's book value at a compound annual rate of more than 20% -- double the market's return. Just $10,000 invested in Berkshire Hathaway as late as 1980 is worth nearly $3 million today. In today's video, Matt and Paul discuss a few stocks that could turn out to be the next Berkshire Hathaway. Get their thoughts and find out the names by watching the video below.

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Matthew Argersinger owns shares of Biglari Holdings, Berkshire Hathaway, Markel, and Alleghany and has the following options: Berkshire Hathaway. Paul Chi owns shares of Biglari Holdings, Berkshire Hathaway, Markel, and Alleghany. The Motley Fool owns shares of Biglari Holdings, Berkshire Hathaway, and Markel. Motley Fool newsletter services recommend Biglari Holdings, Berkshire Hathaway, and Markel. 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.

Read/Post Comments (6) | Recommend This Article (10)

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  • Report this Comment On February 24, 2012, at 7:32 PM, constructive wrote:

    A couple of other ideas for the next Berkshire Hathaway.


    Fairfax Financial (FRFHF.PK)

    National Western Life (NWLI)

    Reinsurance Group of America (RGA)

    Allied World Insurance (AWH)

    Leucadia (LUK)

    Brookfield Asset Management (BAM)

    Icahn Enterprises (IEP)

    KKR (KKR)

  • Report this Comment On February 24, 2012, at 7:41 PM, TheDumbMoney wrote:

    I would actually pick Greenlight and Einhorn, though it's not a public company. Anyone else noticed that the Baby-Faced Assassin now has an insurance arm and a lending arm affiliated with his hedge-fund? This dude is aiming much bigger than being a hedge fund. He wants the float. And not to invest in T-Bills.

  • Report this Comment On February 24, 2012, at 8:58 PM, constructive wrote:

    dtaf - GLRE is public. Einhorn's a very good investor, not sure how good their underwriting is though.

    Third Point also started an insurance company that they plan to take public in a few years. I wonder if there are any other hedge fund run insurance companies out there?

  • Report this Comment On February 24, 2012, at 9:01 PM, constructive wrote:

    GLRE trades at 1.1x book value which is quite reasonable. For some reason I thought it traded higher so I left it off my list but you're right, it's long term prospects could be Berkshirean.

  • Report this Comment On February 24, 2012, at 9:21 PM, TheDumbMoney wrote:

    Mega, it's totally a thing. They want that float to invest. They realize that being able to invest insurance float has seriously magnified Berkshire's returns and is one of the primary factors in his success. This assumes one can do good underwriting of course. Thanks for the tip, was not aware that the Greenlight entity was public.

  • Report this Comment On February 27, 2012, at 9:34 AM, constructive wrote:

    "Since taking over in 1965, Warren Buffett has grown Berkshire Hathaway's book value at a compound annual rate of more than 20%."

    It dropped below 20% as of Friday.

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