InvestorPitStop.com

1 Bullet-Proof Money Making Stock

With a volatile market like this, stocks swing way up one day and way down another. As soon as the market starts to look bullish, a report comes out about oil, inflation, consumer confidence, or some other economic report, and the market gets knocked down again.

If the stress of this volatility is too much for your body to handle, stick to a more constant stock that will yield good returns year after year. The stocks recommended in 3 Stocks That Can Make You Rich are more vulnerable to the ups and downs of this market even though there are much larger potential gains, so I'm offering you a more conservative investment for those who don't want to deal with the unpredictability of the markets.

We all know that Warren Buffett has an impeccable talent for investing (hence being named the richest man in the world by Forbes at an estimated $62 billion), but how can you make returns like Mr. Buffett year after year? You can hardly imagine matching his 60+ years of investing experience. It's hard enough just to track all of the investments Buffett makes in a year. He really is somewhat of a fund manager, so don't just try to chase down all of the same stocks Buffett has.

warren buffett, berkshire hathaway
Picture Courtesy of About.com

An answer to this is to buy into his investing strategy. Warren Buffett's Berkshire Hathaway is a holding company for the companies that Buffett finds great value in and invests in. Berkshire owns a number of companies including Geico, Helzberg Diamonds, Fruit of the Loom, and many others. They also have major holdings in Coca-Cola (KO), American Express (AXP), Anheuser-Busch Companies (BUD), and the list goes on.

The only problem is Berkshire Hathaway (BRK-A) is priced around $134000! Not many people can pay that much money for one share of a stock. There is an alternative that is an equivalent in earnings and growth because it's the same thing;

  • Berkshire Hathaway B (BRK-B) priced near $4490. Although that is still a lot of money for one share, it is a great price for a stock that will earn you great returns. Out of all the stock investment tips, this is truly a stock pick of a lifetime. This is a perfect stock to have and to hold, and to buy more when you can. The B shares of Berkshire offer a more affordable way to get a solid, recession-resistant, constant earning investment. The only difference between A and B is B has less voting power for shareholders, which will make no difference in what you make from the stock at all.

How would you like to have the world's richest man and arguably the most intelligent investor managing your money for free?
The average annualized return of Berkshire has been above 18% for almost 20 years! This is probably one of the most valuable pieces of stock investing advice you can find. Do your own research and check out other companies, but Warren Buffett has one of the greatest minds for investment ideas. He has a clear investment strategy, and you can learn more about his strategy by reading his annual shareholder letter if you want to really get inside his mind.

This article should be found also in the Carnival of Personal Finance.

Browse Travel by Destination at Luxury Link

Why Invest in Stocks?Find Out On Zecco.com Free Blogs, Forums & Trade.
www.zecco.com





Add to Technorati Favorites

Add to Mixx!

|