When it comes to the stock market, winners tend to keep winning. That’s a core principle that many investors at The Motley Fool think about. Here are two proven wealth builders that should continue to deliver nice profits to their shareholders for many years to come.
1. Berkshire Hathaway
Warren Buffetts Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) is built to last. The $885 billion investment conglomerate has generated fortunes for its shareholders for decades, and there are still plenty of profits to come.
Berkshire owns more than 60 subsidiaries that operate in industries as diverse as insurance, railroads, homebuilding and restaurants. GEICO Auto Insurance, BNSF Railway, Clayton Homes and Dairy Queen are among Berkshire’s stable of competitive companies. Combined, these high-quality companies generated operating income of $37.4 billion in 2023.
The diversified income streams these companies create help reduce risk for Berkshire investors. Combined with its fortress-like balance sheet, which contained nearly $190 billion in cash and other reserves as of March 31, these multiple sources of income make Berkshire one of the safest stocks on the market today.
Berkshire’s $375 billion public equity portfolio offers investors another path to wealth creation. Buffett is one of the best in the world at identifying undervalued assets. His interests in elite companies such as Apple And Coca-Cola have delivered billions in profits to Berkshire shareholders. Lately, Buffett has been focusing on innovative oil producers Western petroleumwhich seems like it could be his next big winner in the long run.
Plus, Buffett has discovered another intriguing bargain lately: Berkshire’s own stock. Berkshire has bought back tens of billions of dollars worth of stock in recent years. Buy today and you’ll likely be buying with the legendary investor.
2. Eli Lilly
Leaders of fast-growing markets can also create wealth for investors. Eli Lilly‘S (NYSE: LLY) A groundbreaking new weight loss drug has put the pharmaceutical giant in a position to claim a significant share of the anti-obesity market, which is expected to grow to $130 billion a year by 2030. Goldman Sachs. And Eli Lilly shareholders are already benefiting from the tempting growth potential.
People give several and varied reasons for wanting to lose weight. Some want to improve their appearance. Others know that obesity is linked to a host of potentially dangerous health problems, including diabetes and heart disease. Eli Lilly’s newly approved drug could potentially help prescription users shed excess pounds and improve several key health metrics.
The drug manufacturer’s Zepbound treatment consists of a weekly injection that suppresses appetite. Participants in a 72-week clinical trial who each weighed an average of 231 pounds and received the highest dose of Zepbound lost an average of 48 pounds.
In addition to the weight loss, trial participants who implemented a diet and exercise plan experienced beneficial changes in blood pressure and cholesterol. Clinical studies have also shown that tirzepatide, the active ingredient in Zepbound, can help adults with type 2 diabetes better control their blood glucose levels.
Wall Street thinks these benefits could lead to Zepbound becoming the best-selling drug of all time. In turn, Eli Lilly’s earnings per share are expected to rise 62% per year over the next five years.
The healthcare titan’s nearly 150-year history is filled with scientific breakthroughs like Zepbound that have helped people become healthier. Invest in Eli Lilly stock today and you can claim your share of the profits the company earns from its blockbuster drugs and future discoveries.
Should You Invest $1,000 in Eli Lilly Right Now?
Before you buy shares in Eli Lilly, consider the following:
The Motley Fool stock advisor The analyst team has just identified what they think is the 10 best stocks for investors to buy now… and Eli Lilly wasn’t one of them. The ten stocks that survived the cut could deliver monster returns in the coming years.
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Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool holds positions in and recommends Apple, Berkshire Hathaway, and Goldman Sachs Group. The Motley Fool recommends Occidental Petroleum. The Motley Fool has a disclosure policy.
Do you want to become richer? 2 top stocks to buy now and hold forever. was originally published by The Motley Fool
