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Prediction: 3 Stocks That'll Be Worth More Than Berkshire Hathaway 5 Years From Now
LLYLilly(LLY) The Motley Fool·2025-01-25 09:05

Market Overview - Berkshire Hathaway is valued at 1trillion,makingitasignificantplayerinthemarket,thoughitissmallerthanApple(1 trillion, making it a significant player in the market, though it is smaller than Apple (3.5 trillion), Nvidia (3.4trillion),andMicrosoft(3.4 trillion), and Microsoft (3.2 trillion) [1][2] - Despite its size, Berkshire Hathaway is not expected to lose value and is likely to grow its market capitalization over the next five years [3] Berkshire Hathaway's Challenges - Berkshire Hathaway faces a lack of investment opportunities that interest Warren Buffett and his team, leading to a cash-heavy balance sheet [4] - The company's privately held businesses, such as Geico, Shaw, Duracell, and Fruit of the Loom, make up a significant portion of its current capitalization [4] Growth Prospects Beyond Berkshire Hathaway Eli Lilly - Eli Lilly's revenue is heavily driven by its diabetes treatment Mounjaro (27% of revenue) and weight-loss drug Zepbound (11% of revenue) [6] - GlobalData predicts Mounjaro's annual sales could reach 27billionto27 billion to 34 billion by 2029, up from its current annualized revenue of 12billion[8]−Theanti−obesitydrugmarket,overlappingwithdiabetestreatment,isprojectedtobeworth12 billion [8] - The anti-obesity drug market, overlapping with diabetes treatment, is projected to be worth 100 billion annually by 2030, offering significant growth potential [9] - Eli Lilly's current market cap is approximately 650billion,positioningitasapotentialcandidatetosurpassBerkshireHathawayinsize[10]Visa−Visaconsistentlyoutpacesglobalspendinggrowthduetotheshiftfromcashandcheckstocard−basedpayments[12]−IntheUS,cashusagedroppedfrom31650 billion, positioning it as a potential candidate to surpass Berkshire Hathaway in size [10] Visa - Visa consistently outpaces global spending growth due to the shift from cash and checks to card-based payments [12] - In the US, cash usage dropped from 31% of transactions in 2016 to 16% in 2023, while credit card usage rose from 18% to 32% [13] - E-commerce growth further drives card-based transactions, with only 16% of domestic retail spending currently done online, leaving room for expansion [14] - Visa's innovation efforts, including its global Innovation Centers, contribute to its annual revenue growth of 8% to 15% and strong profit growth [15][16] - Berkshire Hathaway holds an 8.3 million share/2.6 billion stake in Visa, highlighting its investment appeal [17] Taiwan Semiconductor Manufacturing Company (TSMC) - TSMC is a leading third-party semiconductor manufacturer, serving major clients like Apple, Nvidia, and Qualcomm [21] - The global semiconductor market is expected to grow more than twice as fast as global GDP, reaching over 1trillionannuallyby2030[22]−TSMC′smarketcapisalreadyaround1 trillion annually by 2030 [22] - TSMC's market cap is already around 1 trillion, making it a strong candidate to surpass Berkshire Hathaway in size [19] - The company benefits from the rapid growth of AI and data centers, which drive demand for advanced semiconductors [22]