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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 Fool.com 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 -0.33% ) 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 -1.97% ) ( BRK.B -1.93% ) 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!

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

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Stocks Mentioned

The Boeing Company Stock Quote
The Boeing Company
BA
$197.85 (-0.33%) $0.65
Berkshire Hathaway Inc. Stock Quote
Berkshire Hathaway Inc.
BRK.A
$416,876.00 (-1.97%) $-8,384.00
Berkshire Hathaway Inc. Stock Quote
Berkshire Hathaway Inc.
BRK.B
$276.69 (-1.93%) $-5.43

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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