Amid a strong showing for tech stocks, the recent market rotation has allowed other sectors to come into their own. That includes companies that continue to grow, even without necessarily investing heavily into the AI space.
Overall, companies with slow-and-steady growth should be able to keep on moving higher. And investors who buy into these higher-trending stocks may see better returns than investing in AI-related tech stocks after that space has had its big run.
One company moving higher is Berkshire Hathaway (BRK-B). The conglomerate is even flirting with a $1 trillion market cap, and its various insurance and subsidiary holdings make it a reasonable proxy for the economy.
Plus, the company’s cash hoard has been rising, which should insulate the firm against the impact of an unexpected economic setback. Shares are still relatively inexpensive at 14 times forward earnings, which should allow investors to see further upside ahead.
Action to take: Long-term investors may like shares here, and should look to add to that stake during any market pullback. Berkshire’s long-term track record is one of the best in markets today, although the company famously doesn’t pay a dividend.
For traders, shares likely have more upside through the end of the year. The December $490 calls, last trading for about $9.15, could see mid-double-digit returns as shares continue higher.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.