If I Could Only Buy and Hold a Single Stock, This Would Be It

Berkshire Hathaway breaks the “don’t put all your eggs in one basket” rule.

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Key Points
  • Berkshire Hathaway offers built-in diversification across public equities and wholly owned businesses, supported by an exceptionally strong balance sheet.
  • Leadership continuity is in place, with a proven management team already running day-to-day operations and capital allocation.
  • The company’s no-dividend, buyback-focused structure allows long-term investors to benefit from tax-efficient internal compounding.

There are a handful of stocks that behave less like individual companies and more like a fund wrapped inside a single ticker. These are conglomerates or holding companies that own dozens of businesses across industries, geographies, and economic cycles.

The most obvious and most proven example is Berkshire Hathaway Inc. (NYSE: BRK.B).

Even though Warren Buffett officially stepped down at the end of 2025, nothing material about the empire he built has changed. The capital allocation philosophy is intact, the balance sheet remains fortress-like, and the collection of operating businesses and equity holdings is as diversified and cash-generative as ever.

It’s also one of the largest single-stock positions in my own portfolio. If I were forced to sell everything else and buy just one stock to hold for decades, Berkshire Hathaway would be it. Here are three reasons why.

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Diversification backed by a fortress balance sheet

Berkshire Hathaway is diversified in a way that very few single stocks can match. On the public side, it owns large stakes in blue-chip companies across insurance, energy, consumer products, and technology. On the private side, it outright owns entire businesses that generate steady cash flow regardless of market conditions.

That includes household names like GEICO, BNSF Railway, and Duracell, along with dozens of other operating companies spanning manufacturing, utilities, retail, and services. These businesses are not trading vehicles. They are paid-off cash machines that fund everything else Berkshire does.

Then there’s the balance sheet. Berkshire is sitting on roughly $381 billion in cash and short-term Treasuries. That war chest gives it optionality no other public company really has. In practical terms, Berkshire could buy most companies outright without needing to raise capital, dilute shareholders, or rely on debt markets. When markets panic, Berkshire can act while others are forced to sell.

Succession risk is already addressed

A lot of investors worry that Berkshire without Warren Buffett is a different company. In reality, succession has been planned for years.

Operational leadership sits with Greg Abel, who oversees Berkshire’s non-insurance businesses and has been deeply involved in capital allocation decisions for a long time. On the insurance side, Ajit Jain continues to run one of the most disciplined and profitable insurance operations in the world.

This is not a situation where one charismatic founder disappears and leaves a vacuum. The decision-making framework, the culture, and the risk discipline are embedded. Berkshire today is run by a team that has already been operating the business for years.

Built-in tax efficiency through internal compounding

Berkshire does not pay a dividend, and that is intentional. Instead of sending cash out to shareholders and triggering taxes, it reinvests internally or repurchases shares when they trade below intrinsic value.

That approach allows capital to compound inside the company without annual tax leakage. Buybacks increase each remaining shareholder’s ownership stake without generating taxable income. Over long periods, this can be far more efficient than receiving dividends and reinvesting them yourself, especially in taxable accounts.

For patient investors, Berkshire effectively acts like a tax-efficient compounding vehicle wrapped inside a single stock.

How to invest in Berkshire Hathaway

Most investors access Berkshire through Class B shares (BRK.B), which trade in U.S. dollars on the NYSE and are more affordable than the Class A shares. If you’re a Canadian investor, that means converting Canadian dollars into U.S. dollars through your brokerage.

Because Berkshire doesn’t pay dividends, it can be particularly attractive in taxable accounts, where ongoing distributions would otherwise create a tax drag. As always, the right account depends on your broader portfolio and tax situation, but structurally, Berkshire is built to reward long-term holders who are willing to stay put.

One additional option for Canadian investors is the Berkshire Hathaway CDR (TSX: BRK), which trades in Canadian dollars and removes the need for currency conversion, though it comes with an added management fee.

Fool contributor Tony Dong has positions in Berkshire Hathaway. The Motley Fool recommends Berkshire Hathaway. The Motley Fool has a disclosure policy.

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