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7 Stocks to Outperform Berkshire Hathaway Over the Next 10 Years

Berkshire Hathaway (NYSE:BRK.A)(NYSE:BRK.B) has delivered handsome market-beating returns for long-term shareholders. The company is known to increase its book value per share at a good pace, which results in the stock trending higher over time. So, the book value per share growth is one metric we can look at to identify potential stocks that can outperform Berkshire over the next 10 years.

Let’s look at the recent performance of Berkshire stock. From right before the last recession, since the end of 2007, Berkshire stock has delivered 6.8% per year. Since its low in the recession, it has delivered returns of 14.5% per year. In the period, Berkshire roughly boosted its book value per share by 223%.

Some of the following amazing stocks have shown powerful book value per share growth outpacing that of Berkshire’s. Investing in these stocks led to returns that beat Berkshire during the period discussed.


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Brookfield Asset Management (TSX:BAM.A)(NYSE:BAM) is one of the best global alternative asset managers out there. It has a focus on real estate, renewable power, infrastructure, and private equity assets. Therefore, investors can get diversification benefits alongside great management with this one investment.

From right before the last recession, since the end of 2007, BAM stock has delivered 10.6% per year, beating Berkshire by 3.8% annually. Since its low in the recession, it has delivered returns of 20% per year, beating Berkshire by a wide margin. In the period, BAM roughly increased its book value per share by 299%, beating Berkshire by 76%.

There remains tremendous growth for BAM as its +US$300B assets under management continues to expand and it collects recurring fees for managing assets.

Brookfield Business Partners (TSX:BBU.UN)(NYSE:BBU) has had a rather short trading history, starting from only 2016. However, notably, it’s the private equity arm of BAM and is aimed to deliver even greater returns than BAM.

Therefore, if we expect an investment in BAM stock to outperform Berkshire Hathaway, (which we do!), it follows that we also expect an investment in Brookfield Business stock to outperform Warren Buffett’s company. BAM aims to generate a long-term rate of return of 12-15%, while Brookfield Business aims for a 15-20% return on its investments.

Here’s the catch. As a business services and industrials company, Brookfield Business’ performance will be more sensitive to business cycles, which makes it a riskier investment than BAM, which is much more diversified.


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One grassroots Canadian company has already begun introducing this technology to the market – which is why legendary Canadian investor Iain Butler thinks they have a leg up on Amazon in this once-in-a-generation tech race.

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Shopify (TSX:SHOP)(NYSE:SHOP) was only listed on the TSX in 2015. However, the stock has been simply flying!

Since inception, Shopify stock has delivered 71% per year, beating Berkshire by 61.9% annually. In the period, Shopify roughly increased its book value per share by 642%, beating Berkshire by more than 15 times!

Shopify started with the goal of helping entrepreneurs (even non-technical people) sell online and helping them stay relevant by thinking ahead in software, functionalities, and strategies. For example, Shopify has been exploring virtual reality, augmented reality, gaming as a channel, geofenced flash sales, and other ways to bridge the gap between physical and digital retail.

In 2018, Shopify increased revenue by 59% to more than US$1 billion, while gross merchandise volume rose 56% to over US$41 billion.

If you’re looking for aggressive growth, consider averaging into the high-growth stock and especially so on meaningful corrections.

OpenText (TSX:OTEX)(NASDAQ:OTEX) has done a brilliant job acquiring and integrating companies and coming out as a market leader in the enterprise information management space. It has made its shareholders lots of money along the way.

From right before the last recession, since the end of 2007, OpenText stock has delivered 18.3% per year, beating Berkshire by 11.5% per year. The stock thrived in the last recession with adjusted earnings per share growing about 74% over the roughly two-year period.

The stock’s low in the recession looks like a blip by now. From there, it has delivered total returns of 20.7% per year. In the period, OpenText roughly increased its book value per share by 411%, beating Berkshire by 188%.

If you’re worried about a slowdown in global economic growth or a market downturn, you should highly consider OpenText because at such times, the company will be able to pick up more fitting acquisitions at bargain prices. And that leads to Berkshire-beating returns over the long run.


Amazon CEO Shocks Bay Street Investors By Predicting Company “Will Go Bankrupt”

Amazon CEO Jeff Bezos recently warned investors that “Amazon will be disrupted one day” and eventually “will go bankrupt.”

What might be even more alarming is that Bezos has been dumping roughly $1 billion worth of Amazon stock every year…

But Bezos isn’t just cashing out, he’s reinvesting his money into a company utilizing a fast-emerging technology that he believes will “improve every business.”

In fact, this tech opportunity could be bigger than bigger than Amazon, Tesla, and Berkshire Hathaway combined.

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Alimentation Couche-Tard (TSX:ATD.B) has done a wonderful job acquiring and integrating companies and coming out as a market leading in the convenience store space.

From right before the last recession, since the end of 2007, Couche-Tard stock has delivered 25.4% per year, beating Berkshire by 18.6% annually! Since the stock’s low in the recession, it has delivered returns of 33.1% per year, beating Berkshire by a huge margin. In the past decade, Couche-Tard roughly increased its book value per share by 584%, beating Berkshire by 361%.

After the latest run-up in the stock (37% since June 2018), Couche-Tard stock may experience another consolidation phase. If it does, investors should view it as an opportunity to accumulate shares to potentially beat Berkshire in the long run.

MTY Food Group (TSX:MTY) has been very successful in acquiring and integrating mostly brands you find in the food court of malls. Its spectrum of brands including Western, Chinese, Vietnamese, Korean, Japanese, Thai, and Mexican concepts, as well as juice and dessert options.

From right before the last recession, since the end of 2007, MTY stock has delivered 14.7% per year, beating Berkshire by 7.9% annually. Since its low in the recession, it has delivered returns of 23.5% per year, beating Berkshire by a wide margin. In the period, MTY roughly increased its book value per share by 778%, beating Berkshire by 555%.

As of writing, MTY stock trades at $56 and change per share, a price-to-earnings ratio of over 21. It’s not cheap, but it’s a good time to consider the growth stock after it has corrected about 20% from the $70-per-share level.


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Biosyent (TSXV:Biosyent) sources, acquires or in-licenses innovative pharmaceutical products that are proven safe and effective to improve the lives of patients and primarily sells them in Canada. Its recent net margin was 25.5%.

From right before the last recession, since the end of 2007, Biosyent stock has delivered 45.5% per year, beating Berkshire by 38.7% annually. Since its low in the recession, Biosyent stock has delivered returns of 69.4% per year; a $10,000 investment transformed into more than $2 million by now! In the period, Biosyent roughly increased its book value per share by 3,230%, beating Berkshire by 3,007%.

Biosyent last reported net cash of nearly $8.6 million. So, it has a pristine balance sheet and is positioned for profitable growth with strong financial flexibility.

There’s no doubt Berkshire Hathaway is a fabulous long-term investment. However, the seven stocks mentioned have outperformed Berkshire, and they can very well continue to do so.

To outperform Berkshire, do not bet on a small number of stocks. That’d be risky. Instead, invest in a basket of stocks to diversify your risks.

You can start your research with the discussed stocks. Currently, the best buys of the seven may be Brookfield Business Partners, Shopify, and MTY Food Group. Shopify is very interesting. It’s surely super pricey, but it has been making new 52-week highs time and time again recently. This indicates that investors are positive about Shopify’s durable growth prospects.

Kay Ng owns shares of Brookfield Asset Management, Brookfield Business Partners, Shopify, OpenText, Couche-Tard, and Biosyent.


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