Top 10 Forever Stocks | a series brought to you by Wyatt Investment Research ----------------------------------------­----------------------------------------­--------- Forever Stock No. 1 is Berkshire Hathaway (NYSE: BRK.B). For this report, I researched a range of industries to bring you stocks that should hold up regardless of market conditions. To keep your portfolio diversified, I chose companies across several unrelated industries, including energy, healthcare, financials, technology, industrial goods and consumer staples. What’s more, several pay healthy dividends, a must in today’s low-interest-rate environment. These stocks are built to last, meaning you should hold onto them for the long haul. I’m sure you’ll be pleased with their performance for many years to come. ----------------------------------------­----------------------------------------­---------

1. Berkshire Hathaway
(NYSE:BRK.B)
IN WARREN WE TRUST
F O R E V E R S T O C K N O . 1

2. WORLD’S MOST SUCCESFUL INVESTOR
When asked to name the world's most successful
investor, most people answer "Warren Buffett." And
they're right. In fact, there's little room for debate.
F O R E V E R S T O C K N O . 1

3. Warren Buffett didn't create an industry like personal
computer software, as did his bridge partner Bill
Gates. Nor did his eye for outstanding products lead
him to build a consumer electronics behemoth like
Steve Jobs. Warren Buffett's talent, instead, is an
unrivaled ability for evaluating risk and
understanding opportunity.
EVALUATING RISK AND OPPORTUNITY
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4. F O R E V E R S T O C K N O . 1
His prowess has
made his holding
company, Berkshire
Hathaway, one of the
world's largest
companies and it
consistently lands
Buffet on the Forbes
list of world's
wealthiest people.

5. Under Warren Buffett's leadership from 1965 through 2013, Berkshire
Hathaway (NYSE:BRK.B) has seen its per-share book value increase at an
annual rate of 19.7%.
Other talented money managers have been able to achieve annual returns
of 20% from time to time, but not over such a long period. Indeed, no
investment manager has even come close to rivaling Buffett's 48-year
track record of nearly 20% annual gains, even though many claim to
“invest like Buffett.” They may indeed invest like Buffet, but they can’t log
returns like Buffet.
But the reason to buy Berkshire Hathaway today isn't solely because of
Buffett. The reason to buy Berkshire is because of the compelling value of
the stock and the great business that Buffett has built.
48 YEARS OF 20% ANNUAL GAINS
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6. The "founding" of Berkshire Hathaway can be traced back as far as 1839,
when Oliver Chace established a textile manufacturing company – Valley
Falls Company. In 1929, Valley Falls merged with Berkshire Cotton
Manufacturing to form Berkshire Fine Spinning Associates. The company
took its current name from the merger of Hathaway Manufacturing and
Berkshire Fine Spinning in 1955.
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7. Warren Buffett began buying shares of the
public company in 1962, believing it was an
attractive value since the market
capitalization of $18 million was well below
the $22 million in shareholder equity.
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8. Berkshire Hathaway today bears very little resemblance to the
New England textile firm of the 1960s. Once in control of
Berkshire, Buffett began expanding into the insurance
business. In the late 1960s and 1970s, he bought National
Indemnity Insurance and took a stake in Government
Employees Insurance Company (GEICO), which formed the
core of the company's insurance operations that remain intact
today.
INSURANCE EXPANSION
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9. Buffett was attracted to the insurance business in
large part due to the "float" created by writing
insurance policies. As you know, an insurance
company writes policies and collects premiums.
While some of those premiums are held in reserve to
pay future claims, a portion of those funds are
available for the insurance company to invest.
THE “ FLOAT ”
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10. Some insurance companies keep the funds
in money market accounts or U.S.
Treasuries, earning a tiny amount of
interest. But not Warren Buffet.
WORLD’S MOST SUCCESFUL INVESTOR
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11. At Berkshire, Buffett has used this float to make investments
for the company, viewing the float as cost-free capital. As long
as the insurance business breaks even, the company has
access to capital for investments without having to issue debt
or borrow from a bank.
Berkshire's insurance operations today include General Re, BH
Reinsurance and GEICO, which together turned an
underwriting profit of $3.1 billion last year.
COST - FREE CAPITAL
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12. Over the years, Berkshire has seen its insurance float
surge, making vast amounts of capital available for
investment. In 2013 the float was $77.2 billion, a
huge increase from the relatively humble 1970 float
of $39 million. The company uses this insurance float
to make investments in both public and private
companies.
THE $ 77.2 BILLION FLOAT
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13. Today Berkshire owns
56 private businesses,
including:
 Dairy Queen
 Fruit of the Loom
 See's Candies
 NetJets
The company also
owns businesses that
it describes as
"Regulated, Capital-
Intensive," including
MidAmerican Energy
(electricity, natural
gas) and Burlington
Northern Santa Fe
railroad.
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14. In terms of publicly traded stocks, Berkshire owns positions in
Coca-Cola (which Buffett believes will double its dividend in
10 years), Wells Fargo, American Express, Procter & Gamble,
Kraft, Johnson & Johnson, ConocoPhillips, and Wal-Mart. The
most recent additions were: Goldman Sachs and Liberty
Global.
PUBLICLY TRADED STOCKS
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15. Berkshire doesn't pay dividends to its shareholders.
Instead, the company retains its earnings and invests the cash from
operations in investments selected by Buffett and his partner,
Charlie Munger.
Buffett and his team have the ability to understand the big picture
of the economy and how it will affect various sectors and individual
companies. They know how to evaluate financials better than
anyone else, and are steadfast in their willingness to invest only in
companies that they fully understand (a basic principle that many
investors often overlook).
Unlike many blue chip companies,
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16. "Our best years ended in the early 1980s...Looking
forward, we hope to average several points better than
the S&P - though that result is, of course, far from a sure
thing. If we succeed in that aim, we will almost certainly
produce better relative results in bad years for the stock
market and suffer poorer results in strong markets."
F O R E V E R S T O C K N O . 1
Berkshire’s past performance clearly
makes the stock quite attractive.
But Buffett is quite honest and
realistic about what the future
will hold, writing:

17. While the very best days may be in the rear view mirror for
Berkshire, having underperformed the S&P 500 over the past two
years, I'm betting that the company will return to its index-beating
prowess over the long term by providing exposure to a diversified
basket of America's best privately held and publicly traded
companies.
And for that reason, there isn't a better Buffett-style investment
available today than Berkshire Hathaway itself. Don’t just trade like
Buffet. Let Buffet trade for you.
A RETURN TO INDEX-BEATING PROWESS
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18. Ready for more?
N O . 2 Altria (NYSE:MO)
N O . 3 Caterpillar (NYSE:CAT)
N O . 4 Teva Pharmaceutical Industries Ltd (Nasdaq:TEVA)
N O . 5 Cameco Corp. (NYSE:CCJ)
N O . 6 Johnson & Johnson (NYSE:JNJ)
N O . 7 Bunge Limited (NYSE:BG)
N O . 8 Goldman Sachs (NYSE:GS)
N O . 9 Qualcomm (Nasdaq:QCOM)
N O . 1 0 ConocoPhillips (NYSE:COP)