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Why Berkshire Is Poised to Outperform

By Brian D. Pacampara, CFA - Apr 2, 2013 at 1:17PM

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Market-trouncing returns could be written in these five stars.

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, insurance and holding company Berkshire Hathaway (BRK.B 1.72%) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Berkshire and see what CAPS investors are saying about the stock right now.

Berkshire facts

Headquarters (founded)

Omaha, Neb. (1889)

Market Cap

$255.6 billion

Industry

Conglomerates

Trailing-12-Month Revenue

$162.5 billion

Management

Chairman / CEO Warren Buffett (since 1970)
Vice Chairman Charles Munger (since 1978)

Return on Equity (average, past 3 years)

8%

Cash / Debt

$47.0 billion / $62.7 billion

Competitors

Blackstone Group
HM Capital Partners
KKR 

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 98% of the 6,854 members who have rated Berkshire believe the stock will outperform the S&P 500 going forward.

Just last month, one of those Fools, neocolonialist, succinctly summed up the Berkshire bull case for our community:

Built in diversification (they own almost everything now), great management at virtually all levels, low debt ... intentionally great return to investors, great track record, lots of cash, and insurance biz just mints money. About as close to a can't lose company as you can get. When Buffett retires or passes the stock will take a hit, but with the great management they already have in place, that will just signal a great time to buy more. Long term bull here.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.

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Stocks Mentioned

Berkshire Hathaway Inc. Stock Quote
Berkshire Hathaway Inc.
BRK.B
$314.60 (1.72%) $5.31

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