If I Could Only Buy and Hold a Single Stock, This Would Be It | The Motley Fool

When considering which single stock to own for decades, I would opt for a company with a durable and diversified revenue base, a robust earnings growth trajectory, and conservative capital management. Warren Buffett's company, Berkshire Hathaway ( BRK.A +0.59%) ( BRK.B +1.10%), appears to fit the bill. Often referred to as a conglomerate, Berkshire operates much like an asset management company, owning and allocating capital across a broad portfolio of businesses and investments. Image source: Getty Images. However, the company differentiates itself from traditional asset management companies as it is funded primarily by low-cost capital, including insurance float (premiums held before claims are paid) and retained operating earnings of its wholly owned operating businesses, rather than client capital or recurring subscriptions. The company invests this capital in public stocks, private companies, and targeted acquisitions, remaining invested for the long term, without the pressures of redemptions (selling or exiting portfolio holdings), fundraising, or meeting short-term mandates. Besides a robust business model, here are a few other reasons why Berkshire is an attractive buy-and-hold investment for the long-term investor. Strong balance sheet and impressive earnings Berkshire Hathaway exited the third quarter of 2025 with cash and short-term U.S. Treasuries worth $381.7 billion, up $31.7 billion on a sequential basis. With the largest cash position in U.S. corporate history, Berkshire enjoys exceptional financial flexibility to invest billions of dollars in attractive undervalued opportunities during market stress, without increasing debt or diluting equity. NYSE: BRK.B Key Data Points In the third quarter, Berkshire's operating earnings rose 33.6% year over year to $13.5 billion. The operating earnings highlight the durability and health of the wholly owned operating businesses, which are cash-generating businesses in areas of economic activity such as insurance, railroads, manufacturing, utilities, and services. Berkshire's net earnings also come from multiple segments, including insurance underwriting, insurance investment income, Burlington Northern Santa Fe (BNSF, the largest railroad service in North America), Berkshire Hathaway Energy Company (BHE), as well as manufacturing, service, and retail. With a broad and diversified earnings base, the company's performance is not overly dependent on a single industry, macro factor, or news-driven event. Robust operating businesses The primary insurance and reinsurance business remains a key driver of growth for Berkshire. In the third quarter, insurance underwriting generated after-tax earnings of $2.36 billion, up around $1.6 billion on a year-over-year basis. Profitable underwriting enables the company to grow its insurance float at little or no cost, which is then redeployed in investment vehicles to earn insurance investment income. However, in the third quarter, after-tax insurance investment income declined by $483 million year over year, mainly due to lower interest rates and capital distributions to Berkshire in the fourth quarter of 2024. However, this quarterly softness is not permanent, and insurance investment income is expected to recover as interest rates stabilize or begin to rise over time. With a float of $176 billion, the company can generate substantial income from insurance investment returns in the coming quarters. Besides insurance, BNSF Railway has created an...

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