NEW YORK (TheStreet) -- Warren Buffett, one of the most respected, successful and widely followed investors of all time, has a proven track record of picking stocks that add value, while removing those that would deplete value.
The CEO and largest shareholder of Berkshire Hathaway, (BRK.A) Buffett's timeless wisdom has helped to navigate financial turmoil for decades. Known as "The Oracle of Omaha," Buffett's impressive investigating skills helped him build Berkshire Hathaway up from a small textile company into a major corporation.
Using the investment strategy he adapted from his mentor Benjamin Graham, Buffet's philosophy of discipline, patience and value consistently outperforms the market. His advice is sought by thousands of investors worldwide.
Below is a list of Berkshire Hathaway's stocks with the highest growth rate in the past five years:
1. Precision Castparts (PCP)
10-Year EBITDA Growth Rate: 19.50%
Warren Buffett's Portfolio Weighting at of 12-31-2013: 0.51%
Value of Holdings: $532.5 million
Precision Castparts Corp (PCP) was incorporated in the State of Oregon and manufactures complex metal components, provides investment castings for general industrial, armament, medical and other applications. PCP also provides aero-structures for the aerospace industry.
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TheStreet Ratings team rates PRECISION CASTPARTS CORP as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate PRECISION CASTPARTS CORP (PCP) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- PCP's revenue growth has slightly outpaced the industry average of 7.2%. Since the same quarter one year prior, revenues rose by 15.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The current debt-to-equity ratio, 0.33, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.16, which illustrates the ability to avoid short-term cash problems.
- PRECISION CASTPARTS CORP has improved earnings per share by 27.1% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, PRECISION CASTPARTS CORP increased its bottom line by earning $9.75 versus $8.45 in the prior year. This year, the market expects an improvement in earnings ($11.93 versus $9.75).
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Aerospace & Defense industry average. The net income increased by 28.1% when compared to the same quarter one year prior, rising from $338.00 million to $433.00 million.
- 37.59% is the gross profit margin for PRECISION CASTPARTS CORP which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 18.37% significantly outperformed against the industry average.
- You can view the full analysis from the report here: PCP Ratings Report