Invest with Warren Buffett

Want to invest like Warren Buffett? Consider buying Berkshire Hathaway (NYSE: BRK.B) stock. Led by Buffett, co-chairman Charlie Munger and skilled managers, Berkshire Hathaway has outperformed the market for decades, and owning the stock gives you a piece of the famously successful conglomerate.

Berkshire Hathaway’s fully owned subsidiaries include massive railway, insurance and energy businesses, along with big names such as Fruit of the Loom, Duracell, See’s Candies and Dairy Queen. It also has a powerful stock portfolio, recently valued near $300 billion, including 20 percent of American Express and more than 5.5 percent of Apple, among many other holdings.

In recent years, Buffett has spent tens of billions of dollars buying back (and essentially retiring) many shares of Berkshire’s stock. That reduction in the share count leaves each remaining share with a bigger stake in the company, benefiting shareholders. Meanwhile, Berkshire still had $105.4 billion in cash at the end of the second quarter, which it can use to invest in beaten-down companies or to make new acquisitions.

Berkshire Hathaway is a well-managed company with a strong foundation, and the stock stands out as a relatively low-risk investment capable of delivering returns that can meet, if not beat, the overall market over the coming years. Note, too, that Buffett is 92, and there’s a succession plan in place. (The Motley Fool owns shares of Berkshire Hathaway and has recommended Berkshire Hathaway stock and options.)