Berkshire Hathaway Inc. (BRK.A), The Walt Disney Company (DIS), Apple Inc. (AAPL): The World’s Three Most Respected Companies

Page 1 of 2

Berkshire Hathaway Inc. (NYSE:BRK.A)Recently, Barron’s released the world’s most respected companies, featuring 100 companies. These businesses had high rankings following several characteristics including strong management, ethical business practices, sound business strategy, stock-price performance and revenue growth. Around 38% of survey respondents commented that the sound business strategy is the most important thing. Strong management ranked second, with 22% of the respondents’ answers, while 21% of the total respondents agreed that the ethical business practices are the key.

This year’s top three companies are Berkshire Hathaway Inc. (NYSE:BRK.A)The Walt Disney Company (NYSE:DIS) and Apple Inc. (NASDAQ:AAPL).

Berkshire Hathaway – Invest along with the greatest investor

Berkshire Hathaway Inc. (NYSE:BRK.A), under the leadership of the most respected investor, Warren Buffett, jumped to the top of the list from the 15th position last year with the highest mean score of 3.9. For the past 12 months, Berkshire Hathaway Inc. (NYSE:BRK.A) has delivered to its shareholders a nice gain on the market, advancing nearly 35% and outperforming the S&P 500’s return of only 17.9%. Berkshire Hathaway is considered to be a home of many respected operating businesses in various industries including manufacturing, railroad, insurance and even candy/chocolate making.

In the first quarter of 2013, the company’s profit jumped 51% from $3.2 billion, or $1,966 per share, to $4.9 billion, or $2,977 per class A share. The significant year-over-year growth in its profit was due to the improved operating results in the insurance business as well as investment and derivative contract gains.

Its book value has experienced growth of 5.5% since the end of 2012 to $120,525 per class A share. The company estimates its insurance float, which could be considered the net liabilities assumed under insurance contracts, reached $73 billion. Berkshire Hathaway Inc. (NYSE:BRK.A) is trading at $168,600 per Class A share, with the total market value of $277.7 billion. The market values Berkshire Hathaway at around 1.4 times its book value.

Buffett has managed to grow Berkshire Hathaway Inc. (NYSE:BRK.A) at very high rates for the past several decades. In the period of 1965 through 2012, the company’s book value annualized growth rate was as high as 19.7%, translating to the overall whopping gain of 587,000%. Looking forward, with its 70 diversified operating businesses, talented and long-term management at each subsidiary, combined with the great capital allocation skills of Buffett and his associates, Berkshire Hathaway Inc. (NYSE:BRK.A) is still truly a great business to own in the long run.

Disney –  a consistent increasing dividend payer

The Walt Disney Company (NYSE:DIS) ranked second the in the list with the mean score of 3.8. In the past 12 months, shares of The Walt Disney Company (NYSE:DIS) also enjoyed quite a sweet gain of more than 30.2%. The company operates in five main business segments: Media networks, parks and resorts, studio entertainment, consumer products and interactive.

In the second quarter 2013, the media-networks segment generated $1.9 billion in operating income while the parks and resorts segment ranked second with $383 million in operating profit. The media-networks segment seems to be the most profitable division with the highest operating margin of 37.5%. The consumer-products segment ranked second with more than 26% operating margin.

What attracts income investors to The Walt Disney Company (NYSE:DIS) is its consistently increasing dividend payments. In the past 10 years, its dividends increased from $0.21 per share in 2003 to $0.60 per share in 2012. At $63.10 per share, Walt Disney is worth $113.7 billion in market capitalization. The market values The Walt Disney Company (NYSE:DIS) at around 11.1 times its trailing earnings before interest, taxes, depreciation and amortization (EBITDA). At the current price, the dividend yield stays at 1.2%.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The 10 Biggest Airports in the World

The 5 Most Gang Infested Cities In America

The 34 Smartest Countries in the World

The 10 Countries with the Highest Suicide Rates

The 10 Most Technologically Advanced Countries in the World

The 10 Safest Countries in the World to Live in Peace

The 10 Top Selling Smartphones in the World 2014

The 12 Biggest Shopping Centers in the World

The 10 Friendliest Countries in the World

Qihoo 360 Technology Co Ltd (QIHU), Actavis plc (ACT), Yahoo! Inc. (YHOO) Among 20 Long Ideas from Sohn Canada

The 10 Laziest Countries in the World

The 10 Most Polluted Countries in the World

The 10 Most Dangerous Cities in America 2014

The Top 10 Gold Producing Countries in the World

The 10 Tallest Buildings in the World

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!