Better Buy: Boeing vs. Berkshire Hathaway

In today's ­first round match-up of The Motley Fool Better-Buy Tournament, Boeing squares off against Berkshire Hathaway in a battle to determine which stock is the better buy now. The 64-company tournament pits two Motley Fool analysts against each as they make the case for their stocks with the winner determined by you, the readers.

Boeing (NYSE: BA  ) looks to be a great play for those interested in steady income with an opportunity for capital appreciation via an increasing stock price, according to Motley Fool analyst, Blake Bos. Investors today get around a 6% FCF yield, of which most is returned via a dividend and share buybacks. Investor will then be exposed to some capital appreciation due to increases in earnings from Boeing ramping up production of its 737 and 787 plane models. In today's frothy market, Boeing could be an ideal investment to dollar-cost-average into overtime. While commercial is driving the business today, any rebound in defense could also be icing on the cake. Investors will want to pay attention to backlogs overtime to see make sure new orders continue to come in at an acceptable rate.

Berkshire Hathaway (NYSE: BRK-A  ) (NYSE: BRK-B  ) is managed by one of the greatest investors ever in Warren Buffett and it should always be considered when discussing the best buys, according to Motley Fool analyst, Patrick Morris. Of course beyond its remarkable management team, there's also the reality of its diverse collection of businesses from insurance to energy to railways and financial services.

Considering that earnings available to its shareholders of $19.5 billion in 2013 nearly doubled the $10.3 billion seen just two years ago, and you undoubtedly will have a great investment consideration.

Watch these analysts square off in the video below and then vote for a winner. Then check out the other companies in the Motley Fool Better-Buy Bracket

This year's winning stock?

There's a huge difference between a good stock and a stock that can make you rich. The Motley Fool's chief investment officer has selected his No. 1 stock for 2014, and it's one of those stocks that could make you rich. You can find out which stock it is in the special free report "The Motley Fool's Top Stock for 2014." Just click here to access the report and find out the name of this under-the-radar company.

Cast your vote in the poll below the video!

Read/Post Comments (5) | Recommend This Article (9)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On March 19, 2014, at 4:49 PM, Mega wrote:

    BRK all the way. With $52B in cash and trading at historically low 1.3x book, they are well positioned to outperform in the next defensive cycle.

    Between BRK, F, BAC, and AAPL, this is clearly the toughest division. I still like BRK's chances.

    My picks for the elite eight are BRK, BAC, NLY, O, AIG, C, JNJ and MKL.

  • Report this Comment On March 19, 2014, at 4:56 PM, Mega wrote:

    Although Blake's pitch for BA is more persuasive than Patrick's oddly ambivalent pitch for BRK. What is this about BRK potentially being expensive?

  • Report this Comment On March 20, 2014, at 9:17 AM, JohnCLeven wrote:


  • Report this Comment On March 20, 2014, at 12:17 PM, AMDG4 wrote:

    Boeing. Warren Buffet himself said BRK is a little pricey right now.

  • Report this Comment On March 20, 2014, at 12:21 PM, MyPortfolioGuide wrote:

    We'll take Boeing in this match-up but this investing bracket idea looks awfully familiar....(ahem!)

    We're proud to have come up with this several years ago and it's fun to see others playing now too:

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2880433, ~/Articles/ArticleHandler.aspx, 8/30/2015 12:09:17 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Patrick Morris

After a few stints in banking and corporate finance, Patrick joined the Motley Fool as a writer covering the financial sector. He's scaled back his everyday writing a bit, but he's always happy to opine on the latest headline news surrounding Berkshire Hathaway, Warren Buffett and all things personal finance.

Today's Market

updated 1 day ago Sponsored by:
DOW 16,643.01 -11.76 -0.07%
S&P 500 1,988.87 1.21 0.06%
NASD 4,828.33 15.62 0.32%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

8/28/2015 4:01 PM
BA $133.24 Up +1.37 +1.04%
The Boeing Company CAPS Rating: ****
BRK-A $205344.00 Up +404.00 +0.20%
Berkshire Hathaway… CAPS Rating: ****
BRK-B $135.74 Down -0.49 -0.36%
Berkshire Hathaway CAPS Rating: *****