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Better Buy: Boeing vs. Berkshire Hathaway

By Patrick Morris – Mar 18, 2014 at 3:40PM

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We've collected the most popular companies amongst readers and put them head-to-head in a good old-fashioned challenge we're calling The Motley Fool Better Buy Tournament.

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 (BA 1.47%) 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 (BRK.A 0.68%) (BRK.B 0.99%) 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?

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Cast your vote in the poll below the video!

Blake Bos has no position in any stocks mentioned. Patrick Morris owns shares of Berkshire Hathaway. The Motley Fool recommends Berkshire Hathaway. The Motley Fool owns shares of Berkshire Hathaway. 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.

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