When I was asked to write this piece for our ongoing series on Berkshire Hathaway's (NYSE: BRK-A ) (NYSE: BRK-B ) annual meeting, I struggled to come up with seven legitimate reasons to sell the Omaha, Neb.-based company. After thinking it over, however, I believe I've drawn up a list of factors that fits the bill. To be clear, there's little about Berkshire that leads me to believe it's a "sell" right now. But that's not to say this won't change in the not-too-distant future.
1. Warren Buffett
If Buffett had it his way, he'd probably run Berkshire forever. But he doesn't. And in last year's annual letter to shareholders, the Oracle of Omaha assured investors that the board of directors has not only picked a successor ("an individual to whom they have had a great deal of exposure and whose managerial and human qualities they admire") but that they've identified two "superb backup candidates" as well.
This may be so, but the fact remains that Berkshire won't be the same without Buffett. Aside from his ethereal ability to grow and manage an increasingly massive conglomerate, Buffett has become a magnate for deals. When Solomon Brothers fell on hard times, who'd they call? When Long-Term Capital Management nearly imploded, Buffett was among the first to offer assistance. And when Goldman Sachs (NYSE: GS ) and Bank of America (NYSE: BAC ) needed to reassure the market of their respective solvencies, it was Buffett who came to the rescue.
Top Warren Buffett Companies To Watch For 2014: Purepoint Uranium Group Inc. (PTU.V)
Purepoint Uranium Group Inc. engages in the acquisition, exploration, and development of properties for producing uranium in Canada. The company owns 100% interest in 10 properties covering approximately 76,657 hectares located on Red Willow, S. Newnham Lake, Turnor Lake, Umfreville Lake, William River, Fire Eye Lake, Forsythe Lake, Carson Lake, McArthur East, and Henday Lake, Athabasca Basin in Northern Saskatchewan. Purepoint Uranium Group Inc. is headquartered in Toronto, Canada.
Top Warren Buffett Companies To Watch For 2014: 49 North Resource Fund Inc. (FNR.V)
49 North Resources Inc., through Limited Partnership intends to invest in a portfolio of flow-through shares of resource issuers, who engage in mineral, or oil and gas exploration and development in Canada. It focuses on resource issuers with exploration programs in Saskatchewan. 49 North Resource Fund, Inc. serves as the general partner of the partnership. 49 North Resources Inc. was formed in 2005 and is headquartered in Saskatoon, Canada.
Hot Dividend Companies To Watch In Right Now: Cambium Learning Group Inc.(ABCD)
Cambium Learning Group, Inc. provides intervention curricula, educational technologies, professional services, and other research-based education solutions in the United States. Its Voyager segment offers reading, math, and professional development programs, as well as online courseware and credit recovery solutions for at-risk and special education student populations. This segment also offers reading, literacy, and targeted intervention programs; interactive Web-based programs; math programs for additional student practice for grades 2-8, students in the 25th percentile and below in grades 5-9, and students at risk of failure in algebra; professional development services for teachers and leadership; and online instruction, supplemental courseware, and intervention programs. The company?s Sopris segment provides printed and technology based supplemental solutions comprising assessments, literacy and mathematics interventions, positive behavior supports, and professional development. It offers various programs that address students who score at or below the basic skill level in writing; reading and writing intervention programs; literary screening and progress monitoring tools; professional development programs for educators; programs to improve reading fluency, vocabulary, and comprehension for grades 3-12; and intensive, multisensory, and small group reading intervention programs for primary through intermediate grades. The company?s Cambium Learning Technologies segment provides integrated Websites for individual classrooms, schools, and districts; subscription-based online library of interactive simulations for math and science in grades 3-12; text-to-speech software literacy solutions for individuals with special needs and learning difficulties; and hardware products that target students with physical, visual and cognitive disabilities. Cambium Learning Group, Inc. was founded in 2002 and is headquartered in Dallas, Texas.
Top Warren Buffett Companies To Watch For 2014: Meridex Software Corp (MSC.V)
Meridex Software Corporation IP security and facilities management software solutions in Canada. It offers emergency management software solutions for schools; and calendar marketing software for individuals, corporations, and organizations. The company focuses on integrated building security, camera monitoring, HAVC, and lighting control. It also develops intelligent IP surveillance and business optimization software solutions to enable real-time monitoring systems through mobile devices and wireless networks. Meridex enables educational institutions, governments, hospitals, and retail and corporate enterprises to manage, monitor, and optimize security and facilities management systems. The company�s product includes Meridex MicroView FM mobile software solution, which enables customers to record and update ARCHIBUS facilities data on the spot through the use of Palm or Windows handheld devices. Meridex Software Corporation is based in Vancouver, Canada.
Top Warren Buffett Companies To Watch For 2014: Hudson Resources Inc. (HUD.V)
Hudson Resources Inc., an exploration stage company, engages in the acquisition, exploration, and evaluation of mineral properties. It primarily mines for rare earths, diamonds, and base metals, as well as specialty metals, such as niobium and tantalum. The company holds 100% interests in 2 exploration licenses comprising Naajat Mineral Claim and Sarfartoq Mineral Claim covering an area of approximately 687 square kilometers located in west Greenland. The company was formerly known as Tekwerks Solutions Inc. and changed its name to Hudson Resources Inc. in December 2002. Hudson Resources Inc. was incorporated in 2000 and is headquartered in Vancouver, Canada.
Top Warren Buffett Companies To Watch For 2014: Rackspace Hosting Inc(RAX)
Rackspace Hosting, Inc. operates in the hosting and cloud computing industry. It provides information technology (IT) as a service, managing Web-based IT systems for small and medium-sized businesses, as well as large enterprises worldwide. The company?s service suite includes dedicated hosting comprising customer management portal and other management tools that manage data center, network, hardware devices, and operating system software; and cloud computing that enables customers to provide and manage a pool of computing resources, as well as delivery of computing resources to business when they need them. It offers cloud servers, cloud files, and cloud sites, as well as cloud applications, such as email, collaboration, and file back-ups; and hybrid hosting that provides a combination of dedicated hosting and cloud computing services. The company also offers customer support services. It sells its service suite through direct sales teams, third-party channel partners, an d online ordering. The company was formerly known as Rackspace.com, Inc. and changed its name to Rackspace Hosting, Inc. in June 2008. Rackspace Hosting, Inc. was founded in 1998 and is headquartered in San Antonio, Texas.
Advisors' Opinion:- [By Laura Brodbeck]
Monday
Earnings Releases Expected: Sotheby�� (NYSE: BID), Otelco (NASDAQ: OTEL), Rackspace Hosting, Inc. (NYSE: RAX), Red Lion Hotels Corporation (NYSE: RLH) Economic Releases Expected: Italian industrial production, Mexican industrial production, Portuguese trade balanceTuesday
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