If I Could Buy Just 1 Stock in 2023, This Would Be it

If I could invest in just one stock in 2023 it would be Berkshire Hathaway (NYSE:BRK.B).

| More on:
analyze data

Image source: Getty Images

I’m not the type of investor who puts everything in just one stock. My portfolio is pretty diversified, with eight stocks and four funds. With that being said, there is one stock I’d be comfortable putting 100% of my money in if there were no other good options available. In this article, I will explore that one stock and why it’s such a reliable performer.

Berkshire Hathaway

Berkshire Hathaway (NYSE:BRK.B) is a U.S. conglomerate run by Warren Buffett. It started off as a textile company and later grew into an insurance company and then again into a diversified holding company. Today, it has investments in a wide variety of different sectors:

  • Tech (mainly a big Apple investment)
  • Banking
  • Consumer staples
  • Restaurants
  • Insurance

Berkshire Hathaway has so many different investments at this point that it’s difficult to analyze on a fundamental level. It would take many months to understand how all the pieces fit together. However, you can think of the company as a fund, where you’re fundamentally betting on the management team.

Berkshire Hathaway is run by Warren Buffett and Charlie Munger, two of the most successful investors of all time. Over the last 60 years, they have delivered a return 150 times greater than that of the S&P 500. When you buy Berkshire Hathaway, your investments are being managed by this experienced investment team.

Now, Buffett and Munger are both over 90 years old. Munger turns 100 next year! Obviously, they’re not going to be around forever, but they have a group of successors waiting in the wings who have distinguished careers in their own right.

First, there’s Greg Abel, the next chief executive officer. Second, there’s Ajit Jain, an insurance executive who Warren Buffett says has never written a single bad insurance policy in his entire career. Third and finally, there’s Todd Combs and Ted Weschler, the investment duo who have come up with some of Berkshire’s best recent ideas, such as the famous Apple bet. Ted Weschler in particular has a fantastic personal track record, having grown a $70,000 account to several hundred million dollars.

A similar Canadian stock

If you’re interested in Canadian companies similar to Berkshire Hathaway, one company you could look at is Brookfield Asset Management (TSX:BAM). BAM is a major financial conglomerate much like Berkshire, but its business model is a little different. Berkshire owns all of its investments outright; BAM invests other peoples’ investment in exchange for fees. This is a solid business model.

Over the years, BAM has grown its investments at a compounded rate of 16% per year. It says that it expects to grow its fee income by 15% to 20% per year over the next five years. That would be an excellent growth rate, were it to be achieved. And indeed, it could be achieved!

Brookfield Asset Management is a well-respected value-investing organization. It counts people like Mohnish Pabrai among its shareholders, and some of its people are personally connected to Buffett and Munger. Just going off of the company’s management track record and connections, it looks promising.

Of course, your research will need to go beyond this observation if you intend to invest real money into BAM, but it’s somewhere to start.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. 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, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Andrew Button has positions in Apple and Berkshire Hathaway. The Motley Fool recommends Apple, Berkshire Hathaway, and Brookfield Asset Management. The Motley Fool has a disclosure policy.

More on Investing

Tech Stocks

1 Under-the-Radar Beneficiary From the Rise of ChatGPT

ChatGPT will benefit AI-enabled stocks like Docebo (TSX:DCBO).

Read more »

money while you sleep

Worried About Market Volatility? 3 Defensive Stocks for Better Sleep Tonight

Risk-averse investors can sleep better and seek safety in three defensive stocks to counter not only a recession but heightened…

Read more »

Businessman holding AI cloud
Tech Stocks

TFSA: 2 AI Growth Stocks for Your $6,500 Contribution

Here are two of the best AI stocks to buy in Canada in 2023.

Read more »

edit Safety First illustration

Add a Margin of Safety With 3 Consumer Staples Stocks

Are you looking for stocks that could give your portfolio a margin of safety? Buy these three consumer staples stocks!

Read more »

Man data analyze

TFSA Investors: The 4 Very Best TSX Stocks to Own This Decade

TFSA investors should look to snatch up TSX stocks like Enbridge Inc. (TSX:ENB) and goeasy Ltd. (TSX:GSY) in March.

Read more »

retirees and finances
Dividend Stocks

Retirees: 3 Ideal Stocks to Buy in a Bearish Market

Given their low-risk businesses and stable cash flows, these three Canadian stocks are ideal buys for risk-averse retirees.

Read more »

edit Colleagues chat over ketchup chips
Tech Stocks

The Best Stocks to Invest $50,000 in Right Now

You can create a portfolio of undervalued stocks with $50,000 right now. Here are three such stocks you can add…

Read more »

data analyze research
Dividend Stocks

3 Dividend Powerhouses to Buy for Reliable Passive Income

Are you seeking passive income? These three Canadian stocks are reliable investments for generate steady income.

Read more »