Buffett's hot streak continues

Berkshire-Hathaway's stock is beating the market. Here's why it has even more room to run.

By Motley Fool Aug 5, 2013 4:30PM
Led by CEO Warren Buffett, Berkshire-Hathaway’s (BRK.A) second-quarter profits rose 46%. However, the stock is hardly reacting, could Buffet be a victim of his own success? Investments in financials were part of the story, as shares of Bank of America (BAC) and Geico have more than doubled since Buffett received 700 million warrants.  And shares of Berkshire-Hathaway have outpaced the market by about 15% over the past year.

Motley Fool analyst Jason Moser says the shares still have room to run.  Despite the stock carrying a richer-than-average valuation, Moser suggests investors take a closer look because of Buffett’s track record.  With great stock holdings including American Express (AXP), Coca-Cola (KO) and Wells Fargo (WFC), Berkshire-Hathaway may be worth the premium.
File photo of Warren Buffet in April 2011 (© Rick Wilking/Newscom/Reuters)With his famed "elephant gun" still loaded, Buffett could pull the trigger on another major acquisition that will have Wall Street applauding once again. Moser suggest the next great acquisition for Buffett could be no other than the blockbuster spice company McCormick (MKC). This diversified company with a reliable cash flow could be a great addition to Berkshire-Hathaway and may be another company worth looking into for your own portfolio.

The Motley Fool's 12 top stocks for 2013 are now available! So if you're tired of picking stocks out of a hat and hoping that one skyrockets, check out Stocks 2013: The Investor's Guide to the Year Ahead. It's The Motley Fool's current top report, and includes Chief Investment Officer Andy Cross's top stock for 2013! This under-the-radar company is the secret winner in the war for the last precious drops of oil on the planet. Find out what it is and how you can take advantage of this unseen company's huge profits in this special, free report, just click here now.


MSN Money on Twitter and Facebook

Like us on Facebook: MSN Money and Top Stocks

Follow us on Twitter: @msn_money and @topstocksmsn

21Comments
Aug 5, 2013 6:12PM
avatar
We should put Buffett in charge of the Federal Reserve, He obviously know what's going to happen before it happens or He can make it happen.
Aug 5, 2013 9:19PM
avatar
Buffet loaned BAC 6 billion at 6% dividend.(government backed) They were supposed to loan that money out at 4% mortgages and make money. Obama applauded and took credit for brokering the deal. Buffet had options to turn it into stock which he did and turned billions in profit. Obama helping Wall ST while telling his voters the rich are bad people. 
Aug 5, 2013 6:51PM
avatar

CRAZY8`s;Yes, you`re right.Buffett only is worth about 80 billion.He made it by pure

luck.He`s been 100% lucky for 50 years.

Aug 5, 2013 6:19PM
Aug 5, 2013 9:01PM
avatar
Warren, Charlie and BERK, just keep chugging along,,,"all aboard" wooohooot...woohoo.
Aug 5, 2013 6:29PM
avatar

Investors wished they knew half what Warren knows.You can always tell when someone was

too stupid to have missed the bull market.They`re the ones that bellache that the market

is dependent on Fed money.In other words :SOUR GRAPES.

Aug 6, 2013 6:32AM
avatar
What Buffett actually knows... he knows the exact trending pattern of this exaggerated cycle and just keeps doing what he has always done... which, he knows... ends when he does and cannot be continued or repeated. As for bringing Obama into it... Obama has not done much of anything at all. If you were more observant than a narrow-minded yuk yuk... you'd notice another trending pattern has been forming. The time on Buffett's clock suggests he doesn't need to do anything more than let it ride and $85 billion in monthly QE more than suggests that's all that's happening.
Aug 6, 2013 11:27AM
avatar
when are people in 401k going to realize  you are just making this man richer . he can  buy and sell by the  hour.  in a 401k  you have to pick the options  you  get.  its not your  money don't  think so try to get your money  out  or  say  buy  just  ge  stock  impossible .  this was the way the government got control of your  money  next the constitution then your  guns  ect ect  health  care socialism  folks
Aug 6, 2013 11:36AM
avatar
This guy is the master of insider trading.  They go after Martha but this guy might as well be in congress and be legal with inside trading
Aug 5, 2013 9:10PM
avatar

Just gonna take a guess and say the Markets were about "flat Today."

 

Keeping in mind at least about four(4) Indices and the Percentages they up or down..

Just 2-4 stocks on the DOW could cause close to the point loss. all depending on weighting.

Aug 6, 2013 10:52AM
avatar

it is always crazy when you have the stock market your like a gambler and sometime you make a good shot and then the time you don't get it and then it falls down and loses its prices and then falls even worse and you have to learn what you doing and sometime you make some money and then the other time you loose money trying

that's how you learn to play the game some winners and other losers that play as well

thanks have a good day as well

john j

Aug 6, 2013 8:44AM
avatar
I'm sure we will here Warren drone on about the tax rate and the need for the 'rich' to pay more as he continues to shelter his income in trusts.
Aug 6, 2013 3:16AM
avatar
Buffet is an example of a by-gone era of country clubs, elitism, cronyism, madness and greed. Does anybody know what he believes in? He has invested in staid, old companies that do the same thing they always did but has he ever invested in Tesla or somebody that makes a difference in the future? Where's the vision? No, a green gecko selling insurance is not vision. His legacy will be austerity for his children and grandchildren and zero thought for the here and now. He could be investing now in stem cell research to help the blind see now and the lame walk now. Why claim you're leaving it to charity when you die? Do something now that benefits us today, not 30 years from now. Why can't there be a super-alliance of global wealthy who pool their money together to cure something that benefits the whole human race? 
Aug 6, 2013 6:49AM
avatar
By the way... I know most right-leaners only read what they want to, but did any of you check out the article where Obama will lobby for the closure of Fannie and Freddie? He will be backed in doing so by BOTH parties but so far, no ignorant House zombies. There is a near-parallel to the GSE Era and the Buffett Ride. A reminder that Government Sponsored Enterprises for mortgages came about because the majority of the nation were wage-earners with nearly identical credentials buying tract homes. The diligence and thus the servicing was- repetitive or could be precisely trended. In 1994, a FNMA survey revealed that less than 40% of America continued to slot into the Fannie/Freddie criteria. Today, if the survey was conducted again, the trending pool would be very close to zero. That makes the odds of a GSE doing and being what it was created to-- impossible. The GSEs will dissolve. Banks were always the primary client for GSE advantages, so the lobby will require bank divestiture next. With the banks divested to likely- state boundaries with new entities conducting interstate transacting beyond boundaries, the Fed goes away. In order to make that be our course... the Buffetts and a handful of others are powerful enough to collapse the stock market Kool Aid game and send the wealth tied-up in dysfunctional business platforms into the debt notes of this folly and cancel each other out. It-- pops the pimple and seals the pore. Notably, every one else in the markets through banks, fund groups and brokerages- has no hands-on accessibility for taking possession of certificates (you are all electronic and I'll bet NONE have read the disclosure you agree-to about every 3 months). You get-- ZIP out of this. A reserve script-form currency stops gold from being of any significance. The ONLY course with a horse and cart is Free Enterprise. To win... you need to get off your fiat assets and be doing something in the economy that matters TO the economy. Place your bets now, but I only take real currency and I don't mean paper money or the bogus kind-- stocks, bonds, metals or real estate.
Aug 5, 2013 7:13PM
avatar

Max, you said quite a bit in a few words. Of course, he knows and his ilk also do. He just "funnels" it to his cronies....."below".  He is no genius.  He is a charlatan and should just go way.

I like the "under the radar" reference.  Get a clue.  He is part in parcel of what is wrong with our non-existent, economy.  This could "backfire" on him as the monies are fiat and so are the "shills" that surround this worthless piece of ....

Aug 6, 2013 3:07AM
avatar
Buffet is a cabron. He let his wife sleep with other men in California while he slept with her best friend in Nebraska and eventually married her. He never made a dime during the dotcom years because he is so old he never ran a computer. The only thing he does on it is play card games. He takes a cash hoard, buys companies and lets other people with real skills run them because he is nothing more than a gambler and the man behind the man, the holding company. I can't wait for him to go away so somebody who works for a living can be the next go-to guru like that facebook kid. 
Report
Please help us to maintain a healthy and vibrant community by reporting any illegal or inappropriate behavior. If you believe a message violates theCode of Conductplease use this form to notify the moderators. They will investigate your report and take appropriate action. If necessary, they report all illegal activity to the proper authorities.
Categories
100 character limit
Are you sure you want to delete this comment?

DATA PROVIDERS

Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.

STOCK SCOUTER

StockScouter rates stocks from 1 to 10, with 10 being the best, using a system of advanced mathematics to determine a stock's expected risk and return. Ratings are displayed on a bell curve, meaning there will be fewer ratings of 1 and 10 and far more of 4 through 7.

116
116 rated 1
284
284 rated 2
461
461 rated 3
671
671 rated 4
628
628 rated 5
618
618 rated 6
615
615 rated 7
495
495 rated 8
347
347 rated 9
115
115 rated 10
12345678910

Top Picks

SYMBOLNAMERATING
DYNDYNEGY Inc10
TAT&T Inc9
VZVERIZON COMMUNICATIONS9
EXCEXELON CORPORATION8
AAPLAPPLE Inc10
More

VIDEO ON MSN MONEY

ABOUT

Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.

Contributors include professional investors and journalists affiliated with MSN Money.

Follow us on Twitter @topstocksmsn.