By: Dividend Sensei
Buffett is famous for making countless investors millionaires, but he hasn’t made a needle-moving acquisition in six years.
BRK’s $144 billion mountain of cash can’t be eliminated via buybacks, Berkshire would need to buy a massive blue-chip to achieve long-term double-digit growth.
This 6.7% yielding blue-chip represents an $80 billion titan and the green energy leader of its industry.
It has a $37 billion growth backlog that it can fund on its own. But it also has a $9.6 trillion growth opportunity in offshore wind that could double BRK’s growth rate.
Today, this 6.7% yielding dividend aristocrat is 14% undervalued, and paying even a modest premium would still represent a “wonderful company at a fair price.” Its management says it can deliver about 13% CAGR long-term returns, which are slightly better than the 12% CAGR long-term returns analysts expect from BRK.
That’s why I’ve invested over $65,000 into this 6.7% yielding rich retirement blue-chip and you might want to consider buying it just in case Buffett doesn’t.