In the stock market, winners tend to keep winning. This is a fundamental principle that many investors at The Motley Fool subscribe to. Here are two proven wealth creators that should continue to generate substantial gains for their shareholders for many years to come.
1. Berkshire Hathaway
Warren Buffett Berkshire Hathaway (NYSE:BRK.A) (NYSE:BRK.B) is built to last. The $885 billion investment conglomerate has generated considerable returns for its shareholders for decades, and many gains are still to come.
Berkshire has more than 60 subsidiaries operating in industries as diverse as insurance, railroads, home construction and restaurants. GEICO Auto Insurance, BNSF Railway, Clayton Homes and Dairy Queen are among Berkshire’s competitively advantageous companies. Together, these high-quality businesses generated $37.4 billion in operating profit in 2023.
The diversified revenue streams created by these companies help reduce risk for Berkshire investors. Combined with its fortress-like balance sheet, which held nearly $190 billion in cash and other reserves as of March 31, these multiple revenue streams make Berkshire one of the safest stocks available 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 holdings in elite companies like Apple And Coca-Cola brought billions in profits to Berkshire shareholders. Lately, Buffett has been stocking up on innovative oil producers Western oilwhat appears to be his next big one long term winner.
Additionally, Buffett recently identified another interesting deal: Berkshire’s own shares. Berkshire has repurchased its shares worth tens of billions of dollars 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 wealth for investors. Elie LillyIt is (NYSE:LLY) A revolutionary new weight loss drug has allowed the pharmaceutical giant to claim a major share of an anti-obesity market that is expected to reach $130 billion a year by 2030, according to Goldman Sachs. And Eli Lilly shareholders are already benefiting from its enticing growth potential.
People cite many and varied reasons for wanting to lose weight. Some people want to improve their appearance. Others know that being overweight is linked to a host of potentially dangerous health problems, including diabetes and heart disease. Eli Lilly’s recently approved drug can potentially help prescribed users lose weight and improve several important health parameters.
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 and receiving the highest dose of Zepbound lost an average of 48 pounds.
Along with weight loss, trial participants who implemented a diet and exercise program saw favorable changes in their blood pressure and cholesterol levels. 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 sugar levels.
Wall Street believes these benefits could make Zepbound the best-selling drug of all time. Eli Lilly’s earnings per share, meanwhile, are expected to grow 62% annually over the next five years.
The health titan’s nearly 150-year history is filled with scientific advancements like Zepbound that have helped people be healthier. Invest in Eli Lilly stock today and you can claim your share of the profits it makes from its blockbuster drugs and future discoveries.
Should you invest $1,000 in Eli Lilly right now?
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Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool holds positions and recommends Apple, Berkshire Hathaway and Goldman Sachs Group. The Motley Fool recommends Occidental Petroleum. The Mad Motley 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
