Monday, August 13, 2012

5-Star Stocks Poised to Pop: Berkshire Hathaway

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, insurance and holding company Berkshire Hathaway (NYSE: BRK-B  ) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Berkshire's business and see what CAPS investors are saying about the stock right now.

Berkshire facts

Headquarters (founded) Omaha, Neb. (1889)
Market Cap $207.3 billion
Industry Conglomerates
Trailing-12-Month Revenue $148.1 billion
Management Chairman/CEO Warren Buffett (since 1970)
Vice Chairman Charles Munger (since 1978)
Return on Equity (average, past 3 years) 8.3%
Cash/Debt $37.8 billion / $61.8 billion
Competitors Blackstone Group
HM Capital Partners
KKR

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 98% of the 6,687 members who have rated Berkshire believe the stock will outperform the S&P 500 going forward.

Just last month, one of those bulls, TMFTheDoctor, tapped Berkshire as a particularly timely bargain opportunity:

The reasons for this as a long term holding are well known and need not be repeated here. The reason I'm pulling the trigger now at this entry point is largely because it is inches away from triggering [Warren Buffett's] 1.10 [price-to-book] buyback policy. Which is to say, there is extremely little downside risk.

If you want market-topping returns, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. Of course, despite its five-star rating, Berkshire may not be your top choice.

If that's the case, we've compiled a special free report for investors called "The 3 Dow Stocks Dividend Investors Need," which uncovers a few other juicy large caps. The report is 100% free, but it won't be around forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.

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