Warren Buffett turned 94 years old on Friday. But that’s not the only milestone the legendary investor celebrated in August…
Berkshire Hathaway (BRK-A) became the latest publicly traded company to reach a $1 trillion valuation.
That’s a huge accomplishment. Only seven other U.S. stocks currently sit at similarly lofty valuations – the Magnificent Seven tech stocks.
More companies are poised to join the “Trillion-Dollar Club.” And many folks are wondering which company will be next. Naturally, I have my thoughts on several that have the potential to join this exclusive list in the near future.
Here are what I believe are the three most likely…
Taiwan Semiconductor Manufacturing (TSM) is poised to see major growth in the next 12 months. In fact, the semiconductor company technically reached the $1 trillion mark earlier this year for a very short time before pulling back in recent months.
Despite the weakness, the long-term outlook remains bullish. Demand for anything and everything artificial intelligence (AI) related will continue to boost this company higher.
Electric vehicle (EV) giant Tesla (TSLA) is another former member of the trillion-dollar club that could ultimately return to the elite group. But the company isn’t just a global leader in EVs. It also has its robotaxi division and Optimus robot business that could be valued at nearly $1 trillion on their own.
As a result, I believe Tesla will make a case for becoming the largest company in the world by the end of this decade.
We should also consider Eli Lilly (LLY). This pharmaceutical behemoth isn’t a tech company. But it has been one of the hottest investments over the past few years thanks to the weight-loss boom – specifically the GLP-1 hormone. The firm’s diabetes drugs have morphed into a trendy way to fight obesity, helping its valuation balloon from $100 billion just five years ago to nearly $870 billion today.
Competition is heating up in this niche health care sector. But demand for GLP-1 drugs should remain high – especially as more studies reveal the benefits of fighting obesity and other ailments.
I believe all three companies offer great long-term investments today.
Regular readers know that I never recommend putting all your money behind one company. Instead, I prefer to diversify and own a basket of stocks to both lower our risk and maximize our upside potential. The three companies I mentioned today – plus a few others – would round out an incredible “Trillion-Dollar Club basket” for the next five to seven years.
Here’s to the future,
Matt McCallEditor, Market Insights
The post The Next Trillion-Dollar Company Is… appeared first on Centurion Publishing.
