Stocks are like underwear: The flashy ones get all the visibility, but can cause a whole bunch of trouble. Today, I'm letting readers in on my trustiest pair of stocks, my two top cash holdings that help me sleep at night. I'll outline my bullish thesis and let you know whether I think there's a stock sale for you today.
Long on Buffett When investors decide to put their money behind Berkshire Hathaway Inc. (NYSE:BRK.A), their investing thesis often consists of two words: Warren Buffett. Who can blame them? It's hardly an original move to let one of the wealthiest men on earth manage your money, but creativity points don't make money.
My investing thesis begins with Warren Buffett, but it doesn't stop there. The Oracle of Omaha hasn't kept his good habits to himself, and Berkshire Hathaway has continually proven that it's more than its head honcho. Buffett's assembled a powerful team of level-headed, long-term managers, and the company's fundamentals continue to propel its financials.
Its sales have increased 50% in the past five years, while diluted EPS has shot up over 175%. Berkshire Hathaway Inc. (NYSE:BRK.B)'s book value lagged the S&P 500 (S&P Indices:.INX) with a 14% increase for 2012, but the company's market-beating 31% stock return should keep investors smiling.
Its 579 MW solar farm purchase from SunPower Corporation (NASDAQ:SPWR) and partnerships with First Solar, Inc. (NASDAQ:FSLR) and General Electric Company (NYSE:GE) further affirm that Berkshire Hathaway Inc. (NYSE:BRK.B) has key allies in its quest to turn America green. As an aspiring environmentalist, I can feel good that Buffett has chosen clean and increasingly efficient companies to lead his shareholders into the future.
The company's recent H.J. Heinz Company (NYSE:HNZ) investment is the icing (or, rather, ketchup) on my cake: I'm now investing in something I personally know and love.
Apple Inc. (NASDAQ:AAPL)'s profit pie Apple Inc. (NASDAQ:AAPL) is getting cored by Mr. Market, but its 40% dip hasn't done much to sour my opinion of this stock. Recently, the world's largest company by market cap, this corporation needs no introduction.