For investors who work with nothing more than the money left over at the end of each month after all the bills are paid, the idea of becoming a millionaire may seem out of reach. There is some good news, however. It’s not impossible to build a seven-figure nest egg, even with humble beginnings. To achieve this, it is essential to systematically find all the money you can to contribute to the effort, use the time to your advantage and, of course, select the right actions!
It is this third element which can often prove to be the most delicate for certain investors. People tend to want to own stakes in exciting companies that make headlines. What they needhowever, are reliable and long-lasting investments.
That being said, there is arguably a perfect pick, hidden in plain sight, that people with a millionaire mind might want to consider purchasing sooner rather than later. Better yet, it is arguably undervalued at present, which strengthens the bullish case.
This stock? Berkshire Hathaway (NYSE:BRK.A) (NYSE:BRK.B).
What Berkshire Hathaway is and is not
No, it’s not as exciting as Nvidia Or Amazon are at the moment. It’s not even a growth stock… or even a stock for that matter! Berkshire is a basket of stocks and a group of private (non-publicly traded) companies that collectively constitute a huge conglomerate. It’s also a bit boring simply because its chief guru, Warren Buffett, tends to avoid flashy stocks, opting instead for value.
However, Berkshire Hathaway is precisely what most investors need. Buffett’s approach to stock picking and his ability/willingness to hold on to them for years means that this fund has a history of outperforming the market as a whole.
You probably already know that Berkshire has some familiar names like Apple, Coca-ColaAnd American Express. The conglomerate actually owns about four dozen different stocks, worth a total of nearly $380 billion, although the top five, which include Bank of America And Chevron – represent about three-quarters of the value of its stock portfolio.
Yet the combined value of these publicly traded securities still represents less than half of Berkshire’s total value. The remaining 60% of Berkshire Hathaway’s market capitalization (nearly $900 billion) reflects the value of its other private businesses, ranging from Duracell Batteries, BNSF Railroad and Fruit of the Loom to Geico Insurance and See’s Candies , to name just one. little. These companies are reliable cash cows, generating most of the $37.4 billion in operating profits Buffett says Berkshire generated last year.
These cash-generating activities are at the heart of why Berkshire Hathaway has long-term millionaire-making potential.
It’s Berkshire’s time to shine again
Not everyone will agree with this thesis. Most investors have looked at growth stocks like Nvidia or the aforementioned parent company Facebook. Meta beat value stocks – including Berkshire – coming out of the 2008 subprime-induced bear market…
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