My Top 2 Stocks: Berkshire Hathaway Inc. (BRK.A) and Waste Management, Inc. (WM)

Page 1 of 2

Berkshire Hathaway Inc. (NYSE:BRK.A)I haven’t been in the investing “game” for that long, but my two largest holdings are among the first shares that I purchased when I started getting serious about investing. One is a behemoth with revenue streams among multiple industries, while the other leads the way in its very important industry. It is easy to see why they’re leading the way in my modest portfolio.

Barring any major surprises, Berkshire Hathaway Inc. (BRK.B) and Waste Management, Inc. (NYSE:WM) should maintain the top two spots in my portfolio for the near future and are on my short list for receiving more of my investing funds in the next couple of months. Though the reasons I chose the companies were different, I have been pleased with my decision thus far and hope for continued great performance from both companies.

Why Berkshire Hathaway Inc (BRK.B)?

When I became serious about investing early last year, I was looking for a strong foundation to start out my small portfolio on the right foot. I was looking for a company that had a long track record of market-beating performance, but also one that I thought would continue to do so for the foreseeable future. As a fan of value investing, particularly Benjamin Graham, I figured a great place to start would be with the company run by Warren Buffett, perhaps Graham’s most famous student and one of the world’s best investors.

Berkshire Hathaway is a unique company, and investors in it get rewarded in a multitude of ways. One way is to reap the benefits of its multitude of wholly owned subsidiaries across a variety of industries. Berkshire is perhaps best known for its insurance operations, led by GEICO, but the non-insurance companies it owns also add a lot of money to the Berkshire Hathaway Inc. (NYSE:BRK.A) coffers. Last year, Berkshire’s five most profitable non-insurance companies — including the BNSF railroad and Mid-American Energy — earned more than $10 billion for Berkshire and its shareholders last year. Quite an impressive number.

Investing in Berkshire Hathaway also allows you to share in the performance of the company’s stock portfolio, which is full of stock picks from not only Warren Buffett and Charlie Munger, but also Todd Combs and Ted Weschler, two men Buffett picked to manage an ever-growing portion of Berkshire’s investment funds. Berkshire’s four largest holdings all saw gains during the past year, helping to boost the performance of Berkshire Hathaway Inc. (NYSE:BRK.A) as a whole:

WFC Chart

WFC data by YCharts.

Berkshire Hathaway Inc. (NYSE:BRK.A) is a company that I’m comfortable owning for a very long time and one that I don’t really worry about. Despite its recent run to new heights, I’ll be adding more to my holding over the next few months to truly benefit from one of the greatest companies out there.

Why Waste Management, Inc.(NYSE:WM)?
I added Waste Management to my portfolio when I was looking for a strong and sustainable dividend to add some income of my portfolio. When I added Waste Management, Inc. (NYSE:WM) and Ford Motor Company (NYSE:F) to my portfolio, I did so in equal amounts. While neither has beaten the market, Waste Management has performed much better than Ford since I added them to my portfolio, and it’s easy to see why it’s secure in its second-place position:

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 44 percentage points in 21 months Learn how!

Lists

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top Businesses to Invest In

Top 5 Things You Might Be Doing Wrong With Your Business

Top 5 Strategic Technology Trends in 2014

Top Rags to Riches Stories

Parenting Behavior That Promotes Future Leaders

Top 5 Mistakes Made by Small Businesses

Top 5 Most Common and Potentially Devastating Financial Blunders

Top 5 Highest Paying Jobs for Web Designers

Top 6 Most Respected Professions that Also Pay Well

Top 5 Pitfalls Investors Should Avoid

Top 6 Lawyers and Policy Makers Under 30

Top 6 New Year’s Resolutions for Entrepreneurs

Top 7 Locations to Check in on Facebook

Top 5 Mistakes made by Rookie eBay Sellers

Top 7 eBook Publishers in 2013

Top 6 Health Industry Trends in 2014

5 Lessons for Entrepreneurs from Seth Godin

Top 5 Success Tips from Jordan Belfort – the Wolf of Wall Street

Best Master’s in Finance Degree Programs

Top 6 Earning Celebrities Over 50

The most expensive sports to play

Top 7 Earning Celebrities Under 25

Best 7 Online Courses to Take: Free Finance MOOCs

Top 6 Bad Habits that Promote Failure

20 Most Valuable Soccer Teams in the World in 2013

12 Most Expensive Countries for Foreign Students

Top 30 Most Influential Women in the World

Top 20 Most Expensive New Year Eve Shows

Top 5 Best Vocational Careers

Top 10 Jobs for 2014 by Salary Gain (Predictions)

Top 5 Digital Trends for 2014

Top 6 Things You Can Do To Increase Your Productivity

Top 9 Trending Smartphones in 2013

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!