Should buy berkshire hathaway b stock

Founded in by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. I've written many times before about Berkshire Hathaway NYSE: BRK-B , and how if I could only own one stock, it would probably be the one. With that in mind, let's take a look at Berkshire as compared to another stock I have my eye on right now, General Electric NYSE: Which stock could lead your portfolio down the right path?

Aside from having Warren Buffett, the greatest long-term investor of all time, at the helm, there are plenty of good reasons to like Berkshire over the long run, no matter who is at the CEO's desk. The main reason I've said that if I could only own one stock, it would be Berkshire, is that it is a diversified collection of investments all by itself. In addition to its core business of insurance, which is made up of companies such as GEICO, General Re, and National Indemnity Company, Berkshire has dozens of other subsidiaries, many of which are household names.

Just to name a few, Berkshire Hathaway owns:. What's more, Berkshire also has a large stock portfolio, much of which was hand-picked by Warren Buffett himself. The portfolio contains the common stock of more than 40 companies, including massive stakes in some of the best-run companies in the market, such as Wells Fargo , Kraft Heinz , Coca-Cola , IBM , and American Express , just to name a few. Finally, Berkshire Hathaway should be a big beneficiary of the Donald Trump presidency, as Trump's anti-regulation platform and potential to create a rising-rate environment should help several of Berkshire's businesses and investments -- particularly the insurance subsidiaries and the big bank holdings in the stock portfolio.

However, the stock is still cheaply valued, in a historical context. As of this writing, Berkshire trades for just under 1.

BRK.B Stock Price - Berkshire Hathaway Inc. Cl B Stock Quote (U.S.: NYSE) - MarketWatch

This is well over the threshold of 1. In fact, before the financial crisis, it wasn't uncommon for Berkshire's price-to-book-value ratio to exceed 1. B data by YCharts.

General Electric has been a beneficiary of the post-election "Trump rally" like most of the market, but unlike Berkshire, GE hasn't had a great Just to name a few examples, GE makes energy grid systems; water treatment systems; power-generation equipment such as gas, steam, and wind turbines; and locomotives -- all of which could see demand rise dramatically over the next few years.

Many of these product divisions could be greatly helped by Trump's pro-energy agenda as well. Another potential boost for GE shareholders could come in the form of Trump's proposed repatriation tax holiday.

Berkshire Hathaway May Be The Perfect Stock For The Trump Economy - Berkshire Hathaway inc. (NYSE:BRK.B) | Seeking Alpha

This alone could save GE tens of billions of dollars. It's tough to say. On one hand, Berkshire Hathaway is one of my largest stock holdings, and one that I'll probably continue to add to as time goes on. Furthermore, if we had done this comparison before the election, it would have been no contest.

However, I think the Trump presidency could be a huge positive catalyst for General Electric if Trump follows through with his promises.

So, while I still think Berkshire is one of the best long-term stocks you can buy, and is almost an all-in-one investment portfolio by itself, things just got a lot more interesting for General Electric investors, and I may consider adding it to my portfolio in the new year. Matthew Frankel owns shares of American Express and Berkshire Hathaway B shares. The Motley Fool owns shares of and recommends Berkshire Hathaway B shares. The Motley Fool owns shares of General Electric. The Motley Fool recommends American Express and Coca-Cola.

The Motley Fool has a disclosure policy. Matt brought his love of teaching and investing to the Fool in in order to help people invest better. Matt specializes in writing about the best opportunities in bank stocks, REITs, and personal finance, but loves any investment at the right price. Follow me on Twitter to keep up with all of the best financial coverage!

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Why is Berkshire Hathaway Inc. Stock So Expensive? (BRK.A, BRK.B) | InvestorPlace

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