These proven wealth builders have what it takes to deliver solid gains long-term.
When it comes to the stock market, winners tend to keep winning. That's a core tenet that many investors at The Motley Fool ascribe to. Here are two proven wealth-builders that should continue to deliver handsome gains to their shareholders for many years to come.
1. Berkshire Hathaway
Warren Buffett's Berkshire Hathaway (BRK.A 1.11%) (BRK.B 1.01%) is built to last. The $885 billion investment conglomerate has generated fortune-building returns for its shareowners for decades, and plenty of gains still lie ahead.
Berkshire owns more than 60 subsidiaries operating in industries as varied as insurance, railroads, homebuilding, and restaurants. GEICO Auto Insurance, BNSF Railway, Clayton Homes, and Dairy Queen are among Berkshire's stable of competitively advantaged businesses. Combined, these high-quality companies generated operating earnings of $37.4 billion in 2023.
The diversified revenue streams these companies create help to reduce the risks for Berkshire investors. Combined with its fortress-like balance sheet, which held almost $190 billion worth of cash and other reserves as of March 31, these multiple income sources make Berkshire one of the safest stocks available in the market today.
Berkshire's $375 billion public stock portfolio provides investors with another path to wealth creation. Buffett is one of the best in the world at identifying undervalued assets. His stakes in elite enterprises like Apple and Coca-Cola have netted billions in profits for Berkshire's shareholders. Lately, Buffett has been loading up on innovative oil producer Occidental Petroleum, which looks like it could be his next big long-term winner.
Additionally, Buffett has identified another intriguing bargain as of late: Berkshire's own stock. Berkshire has repurchased tens of billions of dollars worth of its shares in recent years. Buy today, and you'll likely be buying alongside the legendary investor.
2. Eli Lilly
Leaders of fast-growing markets can also create riches for investors. Eli Lilly's (LLY -2.02%) game-changing new weight loss drug has positioned the pharmaceutical giant to claim a sizable portion of an anti-obesity market that is projected to grow to $130 billion annually by 2030, according to Goldman Sachs. And Eli Lilly's shareholders are already profiting from its tantalizing growth potential.
People cite multiple and varied reasons for wanting to lose weight. Some want to improve their appearance. Others know that being overweight is linked to a host of potentially dangerous health conditions, including diabetes and heart disease. Eli Lilly's recently approved drug can potentially help prescribed users shed excess pounds and improve several important health metrics.
The drugmaker's Zepbound treatment is a once-weekly injection that suppresses appetite. Participants in a 72-week clinical study weighing an average of 231 pounds each who received the highest dose of Zepbound lost a stunning 48 pounds, on average.
Along with the weight loss, trial participants who implemented a diet and exercise plan experienced favorable changes in blood pressure and cholesterol. Clinical trials have also demonstrated the ability of tirzepatide, the active ingredient in Zepbound, to help adults with type 2 diabetes better manage their blood glucose levels.
Wall Street thinks these benefits could result in Zepbound becoming the best-selling drug of all time. Eli Lilly's earnings per share, in turn, are expected to increase by 62% annually over the next half-decade.
The healthcare titan's nearly 150-year history is filled with scientific breakthroughs like Zepbound that have helped people be healthier. Invest in Eli Lilly's stock today, and you can claim your share of the profits it earns from its blockbuster medicines and future discoveries.
Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, and Goldman Sachs Group. The Motley Fool recommends Occidental Petroleum. The Motley Fool has a disclosure policy.
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The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, and Goldman Sachs Group. The Motley Fool recommends Occidental Petroleum.
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Let's say that you start with the time frame in mind, hoping an investment will double in value over the next 10 years. Applying the Rule of 72, you simply divide 72 by 10. This says the investment will need to go up 7.2% annually to double in 10 years. You could also start with your expected rate of return in mind.
What stocks are set to soar in 2024? ›
10 Best Growth Stocks to Buy for 2024
| Stock | Implied Upside* |
|---|
| Meta Platforms Inc. (META) | 25.8% |
| Tesla Inc. (TSLA) | 4.5% |
| JPMorgan Chase & Co. (JPM) | 9.6% |
| Exxon Mobil Corp. (XOM) | 12.0% |
6 more rowsJul 22, 2024
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We regularly see similar ads from the Motley Fool about “all in” buy alerts, sometimes also called “double down” or “five star” buys, and they're generally just the type of steady teaser pitch that they can send out all year, over and over with no updates, to recruit subscribers for their flagship Motley Fool Stock ...
What stocks does The Motley Fool recommend for 2024 and beyond? ›
The Motley Fool has positions in and recommends Gilead Sciences, Paycom Software, and Pfizer. The Motley Fool recommends BioNTech Se.
Which stock will boom in 2024? ›
Best stocks in 2024
| S.No. | Name | CMP Rs. |
|---|
| 1. | Man Infra | 202.85 |
| 2. | BLS Internat. | 358.45 |
| 3. | Black Box | 512.40 |
| 4. | RHI Magnesita | 603.00 |
22 more rowsJohn Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Microsoft, and Nvidia.
It states that you can comfortably withdraw 4% of your savings in your first year of retirement and adjust that amount for inflation for every subsequent year without risking running out of money for at least 30 years.
How to double the money? ›
The classic approach of doubling your money involves investing in a diversified portfolio of stocks and bonds and is probably the one that applies to most investors. Investing to double your money can be done safely over several years but there's more of a risk of losing most or all of your money if you're impatient.
How many years are needed to double a $100 investment using the Rule of 72? ›
Answer and Explanation:
Applying the rule of 72, it takes about 72 / 5.75 = 12.52 years to double the investment.
Will market bounce back in 2024? ›
Overall, Yardeni Research forecasts S&P 500 operating earnings at $250 in 2024, up 12% vs 2023. He puts them at $270 in 2025 (up 8%) and $300 in 2026 (up 11.1%). These figures compare with analysts' consensus forecasts of $244.70 in 2024, $279.70 in 2025 and $314.80 in 2026.
What penny stocks to buy today? ›
Most Active Penny Stocks
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What Stocks Should You Invest In During the Summer?
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Motley Fool Portfolio Strategy Explanation Video
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