I'm glad there's no limit on how many stocks you can buy. My portfolio includes dozens of stocks. It would be hard for me to significantly whittle down the number.
What if I had to put all of my money in just one stock? That would be especially difficult. However, if I could buy and hold a single stock, I know which one it would be -- Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B).
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The biggest plus for Berkshire
There's one overriding reason why I'd go with Berkshire Hathaway. The stock offers as much diversification as some exchange-traded funds (ETFs). Investing in Berkshire means investing in a wide range of companies spanning multiple sectors.
Berkshire has over 60 subsidiaries. The conglomerate's insurance and energy businesses get the most attention. But Berkshire also owns homebuilders, manufacturers, railroads, restaurant chains, retailers, and more.
Even greater diversification comes from Berkshire's investments. Berkshire's portfolio includes well over 40 stocks of other publicly traded companies. Holding shares of Berkshire would allow me to still maintain positions indirectly in five other stocks I currently own: Apple (AAPL 2.01%), Google parent Alphabet (GOOG 1.52%) (GOOGL 1.43%), Amazon (AMZN 1.43%), Chevron (CVX +3.21%), and Mastercard (MA 0.96%).
In addition, owning a stake in Berkshire Hathaway provides exposure to other stocks that I don't currently have in my portfolio but have solid long-term prospects. This list includes, but isn't limited to, American Express (AXP 1.19%), Coca-Cola (KO +0.59%), and Visa (V 0.52%).
NYSE: BRKB
Key Data Points
Still an excellent stock even with Buffett no longer at the helm
Does the fact that Warren Buffett is no longer at Berkshire's helm diminish the appeal of the stock? Nope. Don't get me wrong: I admire and respect Buffett immensely. But I also understand that his philosophy, which has made Berkshire great over the decades, will remain in place.
I also believe that Berkshire Hathaway is in capable hands with Greg Abel as CEO. Buffett even stated at the company's annual shareholder meeting that he planned to hold onto every share of Berkshire he owned. He explained, "[T]he decision to keep every share is an economic decision, because I think the prospects of Berkshire will be better under Greg's management than mine."
Of course, Buffett isn't stepping away completely. He continues to serve as Berkshire's chairman. Even if he weren't, though, I'd still pick Berkshire Hathaway as my one stock to buy and hold if I couldn't own any other stocks.
