Squishmallows are small plush toys that were first released in 2017. But it didn't take long for them to find their fan base. According to The NPD Group, it was the best-selling toy of 2022, just five years after its launch. And now, just like Beanie Babies in the 1990s, Squishmallows have a chance to top Happy Meals. McDonald's.
Squishmallows Happy Meals will launch nationwide on December 26 in the US. According to Tariq Hassan, the company's US director of marketing and customer experience, McDonald's is "all about connecting our fans to the culture." , and Squishmallows are some of the most popular toys out there right now."
Since Squishmallows are popular right now, they will no doubt be a trendy Christmas gift item this year as well.
Wouldn't it be great to invest in one of the "most popular toys ever" in Squishmallows? Well, investors don't need to wait for initial public offering (IPO). Turns out you can already invest in Squishmallows because the brand sneakily went public years ago.
Squishmallows' Surprise Owner
Squishmallows is a toy brand owned by the toy company Jazwares. Jazwares was acquired by Alleghany Corporation in 2016. Then in late 2022, Alleghany was acquired by none other than Warren Buffettthe conglomerate Berkshire Hathaway (BRK.A 0.30%) (BRK.B 0.09%).
Therefore, you can invest in the Squishmallows brand if Purchase of Berkshire Hathaway shares.. This is probably one of the last companies that investors would expect to have a fashion toy brand.
On the other hand, perhaps it is No It's so amazing that Berkshire Hathaway owns Squishmallows. After all, it is one of the most diverse companies in the world and owns a large part of the entire American economy, including toys.
Berkshire was a dying textile company when Buffett took over in the 1960s. The famous investor shrewdly saw the situation in textiles and began using the company's money to buy other businesses. It now has business operations in insurance, restaurants, banking, energy, home builders, manufacturing, recreational vehicles, apparel, trucking, railroads, aviation, furniture and a valuable stock portfolioAnd much much more.
Berkshire Hathaway market capitalization has increased almost 4,000% in the last 30 years and currently amounts to 775,000 million dollars. Buffett attributes this phenomenal success to overall economic growth. He said: "The dynamism of the United States has contributed enormously to the success that Berkshire has achieved." Elsewhere, he calls it the "American tailwind."
So, in many ways, investing in Berkshire Hathaway stock is a lot like betting on the entire American economy by investing in a S&P 500 index fund. If investors chose Berkshire Hathaway stock or a collection of 500 of America's largest profitable companies, both will do well if the US economy grows in the long term. They benefit from the same tailwind.
But Berkshire Hathaway shareholders have advantages over those who invest in index funds. First, index funds have fees. And these fees guarantee that incumbents will perform slightly below average over the long term. There is no such fee for holding Berkshire stock.
Second, Berkshire Hathaway often buy back your shares when you think they're cheap, providing an extra boost to shareholders that index fund investors don't get.
Therefore, for investors looking for one of the safest stocks to buy, buying Berkshire Hathaway stock makes a lot of sense. With its market capitalization of $775 billion, it may not have the biggest upside out there. But it will probably work admirably and consistently. And that could make it a nice addition to a portfolio.
Oh yeah, and buying Berkshire Hathaway stock would give you an ownership stake in the most popular toy brand out there in Squishmallows, which might make this a bit more fun idea than the market thinks.
Jon Quast has no position in any of the stocks mentioned. The Motley Fool has posts and recommends Berkshire Hathaway. The Motley Fool has a disclosure policy.
