Building generational wealth is a key aspiration for many investors. That usually requires decades of successful investing, with the focus on decades. Investors who create a solid, diversified portfolio of winning stocks and hold through the years have a high chance of success.
The anchor stocks will be the reliable giants that underpin these kinds of portfolios. Stocks that withstood the tests of time and continue to grow and reward shareholders. Berkshire Hathaway (BRKA +0.34%)(BRKB +0.25%) is an excellent candidate.
Image source: The Motley Fool.
Class B but still Berkshire
Specifically, I'm talking about Berkshire Hathaway Class B shares. Class A shares go for $720,500 per piece as of today's prices, which makes them unattainable for most of us. However, the company issued the second round of shares that are priced at $479 today. Still a hefty price tag, but much more accessible to investors.
There are small differences between the two classes, and B shares provide exposure to all of Warren Buffett's favorite stocks, including Apple, Coca-Cola, and American Express. They also give you ownership of some of the equity portfolio's more unique positions, like its Japanese and Chinese stocks. And that's just the stock portfolio.
Investors love to follow Berkshire's stock moves, previously managed by Buffett and today in the capable hands of Greg Abel. But Berkshire Hathaway owns more than 190 businesses, including well-known brands like Duracell batteries, Benjamin Moore paints, and Brooks running shoes.
Warren Buffett has often spoken about his belief in the U.S. economy, and he looks for businesses that will endure and not become obsolete with new technology. Owning Berkshire Hathaway stock is owning a vast array of solid, well-built, and reliable businesses that should last over time and that you can pass through to the next generation.
NYSE: BRKB
Key Data Points
Steady long-term growth
Over time, Berkshire Hathaway stock has outperformed the S&P 500 by a fantastic margin: a 6,099,294% gain since 1965 versus 46,061% for the broader index. Buffett himself has cautioned that it's unlikely to repeat that kind of outstanding performance; as the company gets bigger, it's harder to take action that moves the needle.
But the stock still offers stability and value, especially in challenging times and volatile markets. Berkshire Hathaway stock joined the trillion-dollar club last year, one of only 10 that sport such a high market cap, and it's the ninth-most-valuable company in the U.S.
Expect Berkshire Hathaway to remain a solid long-term player and a stock that can create generational wealth over time.
