Stocks That Paul Wants To Own FOREVER...Part 3!

TL;DR

Analyzing three long-term investment opportunities - Google, T Rowe Price, and Berkshire Hathaway, using a stock analyzer tool and a comprehensive analysis of their financials, growth potential, and dividends.

Transcript

but basically what that means is this is a multi-bagger to the max 15 return a year for 20 years essentially is 16 times your money I have a growing list currently stands around 20 or 25 stocks that I would like to own for the long haul this came with very minor screening but most these are based on that good balance sheet and great businesses righ... Read More

Key Insights

• 👨‍🔬 Google's dominance in the search engine market and ownership of YouTube make it a promising long-term investment.
• 🦖 T Rowe Price's focus on the 401k industry ensures a steady stream of contributions and potential for rebounding revenues after market crashes.
• 💪 Berkshire Hathaway's strong balance sheet, diverse portfolio, and leadership make it an appealing long-term investment option.
• 💐 Evaluating a company's book value and cash flow is important while analyzing long-term investment opportunities.
• 🔡 Selling puts at a discounted price can be a favorable strategy for acquiring stocks at a lower price.
• 🍉 The stock analyzer tool helps assess the potential returns and value of long-term investments.

Questions & Answers

Q: What are the key factors that make Google a promising long-term investment?

Google's dominant position in the search engine market, ownership of YouTube, and potential for future growth make it an attractive option. Its high ROIC and consistent profit margins also indicate stability and potential for higher returns.

Q: How does T Rowe Price's focus on the 401k industry affect its potential as a long-term investment?

T Rowe Price benefits from the consistent contributions made to 401k accounts, regardless of market conditions. Its history of rebounding revenues after market crashes suggests resilience and long-term growth potential. Additionally, its four percent dividend yield is an attractive feature for investors.

Q: What makes Berkshire Hathaway an interesting long-term investment option?

Berkshire Hathaway's strong balance sheet, diverse portfolio of businesses, and the leadership of Warren Buffett and Charlie Munger make it an appealing investment opportunity. While net income gains/losses may not accurately reflect its value, evaluating book value and cash flow is important in assessing its potential returns.

Q: Should investors consider selling puts below $250 for Berkshire Hathaway?

Yes, selling puts below $250 for Berkshire Hathaway can be a good strategy for acquiring the stock at a lower price. As a long-term investment, buying at a discounted price can result in higher returns over time.

Summary & Key Takeaways

• Google, owning the top two search engines in the world (Google and YouTube), shows potential for growth with a high return on invested capital (ROIC) and consistent profit margins.

• T Rowe Price, as a leader in the 401k industry, benefits from consistent contributions and rebounding revenues after market crashes. It offers a four percent dividend yield.

• Berkshire Hathaway, with a strong balance sheet and a diverse portfolio of businesses, should be evaluated based on its book value and cash flow rather than net income.