These proven wealth builders have what it takes to generate solid profits over the long term.
In the stock market, winners usually keep winning. That’s a principle shared by many investors at The Motley Fool. Here are two proven wealth builders that should continue to deliver handsome returns to their shareholders for years to come.
1. Berkshire-Hathaway
Warren Buffett’s Berkshire-Hathaway (BRK.A -0.03%) (BRK.B 0.07%) is built to last. The $885 billion investment company has delivered wealth-enhancing returns to its shareholders for decades, and there are still many gains ahead.
Berkshire owns more than 60 subsidiaries operating in industries as diverse as insurance, railroads, homebuilding, and restaurants. GEICO Auto Insurance, BNSF Railway, Clayton Homes, and Dairy Queen are among Berkshire’s competitive businesses. Together, these high-quality companies generated operating profits of $37.4 billion in 2023.
The diversified revenue streams of these businesses help reduce risks for Berkshire investors. Combined with its strong balance sheet, which had nearly $190 billion worth of cash and other reserves as of March 31, these diverse revenue streams make Berkshire one of the safest stocks available on the market today.
Berkshire’s $375 billion publicly traded stock portfolio offers investors another avenue for wealth creation. Buffett is one of the best in the world at identifying undervalued assets. His holdings in elite companies such as Apple And Coke have brought billions in profits to Berkshire shareholders. Recently, Buffett has been investing in innovative oil producers Occidental Petroleumwhich could be his next big long-term success.
In addition, Buffett has recently discovered another interesting bargain: Berkshire’s own stock. Berkshire has bought back tens of billions of dollars worth of its own stock in recent years. Buy today, and you’ll likely be buying along with the legendary investor.
2. Eli Lilly
Market leaders in fast-growing markets can also create wealth for investors. Eli Lilly‘S (LLY 0.17%) With its groundbreaking new weight-loss drug, the pharmaceutical giant has captured a significant share of the anti-obesity market, which is forecast to grow to $130 billion a year by 2030. Goldman SachsAnd Eli Lilly shareholders are already benefiting from its tantalizing growth potential.
People cite many different reasons for wanting to lose weight. Some want to improve their appearance. Others know that excess weight is linked to a number of potentially dangerous health problems, including diabetes and heart disease. Eli Lilly’s recently approved drug may be able to help prescription users shed excess pounds and improve several important health parameters.
The pharmaceutical company’s Zepbound is a once-weekly injection that suppresses appetite. Participants in a 72-week clinical trial who weighed an average of 105 kilograms and received the highest dose of Zepbound lost an incredible 21 kilograms on average.
In addition to weight loss, study participants who followed a diet and exercise plan experienced positive 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 sugar levels.
Wall Street believes these benefits could make Zepbound the best-selling drug of all time, while Eli Lilly’s earnings per share are expected to grow 62% annually over the next five years.
The healthcare giant’s nearly 150-year history is filled with scientific breakthroughs like Zepbound that have helped people achieve better health. Invest in Eli Lilly stock today and secure your share of the profits the company makes from its blockbuster drugs and future discoveries.
Joe Tenebruso does not own any stocks mentioned. The Motley Fool owns and recommends Apple, Berkshire Hathaway, and Goldman Sachs Group. The Motley Fool recommends Occidental Petroleum. The Motley Fool has a disclosure policy.
