Warren Buffett has achieved an investment record that will be hard to beat. He took over a struggling textile mill in 1965 and turned it into a holding company with a market value of nearly $1 trillion, making Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) one of the top 10 largest components of the S&P 500 (SNPINDEX: ^GSPC) today.
Berkshire is Buffett's largest personal holding and is a great starting place for any investor to grow their savings. Additionally, Berkshire owns stakes in homebuilder NVR (NYSE: NVR) and leading cosmetics retailer Ulta Beauty (NASDAQ: ULTA). Here's why a team of Motley Fool contributors believe these stocks are timely buys right now.
John Ballard (Berkshire Hathaway): Buffett owns 38% of Berkshire Hathaway's class A shares, and he's been regularly buying back shares of class A and class B stock on behalf of Berkshire in recent years. Through the first half of 2024, Buffett authorized repurchasing $2.9 billion worth of Berkshire shares at prices not much lower than where it is currently trading. This means Buffett sees excellent value in the stock.
Berkshire owns dozens of wonderful businesses outright, including GEICO and BNSF Railway, to go along with its stock portfolio. Buffett views the company's stock holdings, including large stakes in Apple, American Express, and Coca-Cola, the same as owning the whole business.
Buffett is already preparing for a day to scoop up more businesses on the cheap. He sold half of Berkshire's stake in Apple in Q2, bringing Berkshire's total cash and short-term investments to a whopping $276 billion. The large cash position, which is also enhanced by the billions in cash flow coming in from Berkshire's subsidiaries, provides ample ammunition for the greatest investor to pounce on attractive investment opportunities as they arise.
Berkshire is truly a stock for all markets and all investors. With the recent buybacks, Buffett is sending a bullish signal to investors about the company's future.
Jeremy Bowman (NVR): Buffett is known for looking for stocks that have wide economic moats, reliable business models, and good valuations, and NVR possesses all three qualities.
NVR is one of the nation's leading homebuilders, and it's often considered best-in-class in the sector due to its differentiated business model. Unlike many of its peers, NVR doesn't begin by buying land outright. Instead, it negotiates the rights to buy parcels for development, which gives it much more financial flexibility and eliminates much of the downside risk in homebuilding.