There is a high price investor should be willing to pay for a strong, long-term, patient investing mantra from a company or fund that truly takes a long-term perspective when picking stocks today.
One of the greatest consolidators of wealth of all time, Berkshire Hathaway Inc. (NYSE: BRK.B) continues to be a top value pick of mine, particularly in these troubled economic times. The company's share price has lagged the broader market indices in recent years, in part due to a lower appreciation for value stocks compared to growth stocks. This, I firmly believe, will change shortly.
Berkshire invests solely in durable businesses with long-term competitive advantages (what CEO Warren Buffett refers to as "moats"). These companies typically have a strong value proposition with robust secular growth characteristics as well. Sectors which are heavily weighted in the Berkshire conglomerate are insurance and utilities, two sectors which are highly defensive and should have performed better in this period of severe economic distress, in my view.
I anticipate the highly defensive, value-oriented nature of the Berkshire conglomerate will only begin to be fairly valued by the market once we see another leg down, which should be soon.
Thus, I would advise value-oriented investors to consider picking up shares now and get ahead of the curve. The real storm is coming, and value investors will be in the best position to weather the storm. Is your portfolio recession-proof?
Invest wisely, my friends.
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