RKT - Better Buy: Berkshire Hathaway vs. Rocket
Choosing between Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) and Rocket Companies (NYSE: RKT) is a choice between the venerable conglomerate with a portfolio of companies that are tried-and-true stalwarts, and the scrappy, fast-growing upstart that dominates its space. For an investor, which one represents the better buy?
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Berkshire Hathaway and Rocket are fundamentally different companies. Berkshire Hathaway is a holding company with primary business lines in insurance, manufacturing, utilities, and other activities. It also holds a huge investment portfolio that will be sensitive to the fluctuations of the equity markets. This means Berkshire is basically one big diversified equity portfolio run by one of the best investors ever in Warren Buffett. While the insurance arm will be more affected by natural disasters than the economy for the most part, Berkshire will move in line with GDP and the stock market. It is a steady performer.