Key Points

• Blue chip companies have established sound business models that can deliver solid returns over time.

• These companies often operate in stable industries with steady demand for their services.

• They also tend to display a strong economic moat through pricing power and barriers to entry.

• 10 stocks we like better than Berkshire Hathaway ›

Investing in the stock market is one way to build enduring, long-term wealth. As an investor, you could choose to invest in high-flying growth stocks, dividend stocks that provide passive income, or more conservative investments that can preserve and grow your investments steadily over time.

One strategy you can consider is investing in blue chip companies. These companies have withstood the test of time thanks to sound business models that have led to solid returns for patient investors.

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Blue chips typically offer reliable dividends and steady long-term growth, making them appealing to both seasoned investors and newcomers seeking to establish a solid financial foundation. Here are four blue chip stocks you can invest in today.

Berkshire Hathaway

Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) has thrived under the leadership of its longtime CEO, Warren Buffett. Since 1965, Buffett has led the conglomerate to 20% annualized returns, or enough to turn a $100 investment into $5.5 million today.

So when Buffett announced earlier this year he was stepping down at the end of 2025, it took the wind out of the sails of Berkshire Hathaway stock, which is down 12% since the announcement in early May.

However, Berkshire Hathaway is a widely diversified conglomerate with holdings across numerous industries, including insurance, transportation, materials, consumer goods, and energy. Its insurance operations help generate a steady stream of cash flow, which it can invest in treasuries or equities, or use to acquire companies outright.

What makes Berkshire appealing right now is its massive cash pile and positive tailwinds from higher interest rates. The Federal Reserve is cautious about cutting interest rates due to concerns about inflation stemming from higher tariffs. This has resulted in rates staying "higher for longer," and Berkshire has benefited to the tune of $2.9 billion in interest income in the first quarter.

Berkshire will be under new leadership, led by CEO Greg Abel, with its investment portfolio managed by Todd Combs and Ted Weschler, the investing lieutenants tapped by Buffett and the late Charlie Munger over a decade ago. While the uncertainty around its future remains, I think it's well-capitalized and diversified enough that it's a buy at today's price.

Progressive

Progressive (NYSE: PGR) is the second-largest automotive insurer in the United States. What sets this blue chip company apart is its disciplined underwriting, strong brand, and direct-to-consumer model.

The company relies heavily on technology and data to accurately price risk and was one of the original companies to adopt usage-based insurance, known as telematics. This approach utilizes driver data to price policies, which is one reason the company has outperformed its competitors.

Progressive's track record of navigating underwriting cycles while maintaining profitability distinguishes it. Going back 23 years, the company's combined ratio has averaged 92%, which is significantly lower than the industry average of 100%. Put differently, Progressive has earned an average of $8 in underwriting profit for every $100 in premiums.

As a stock, Progressive offers defensive characteristics with upside. Insurance is a stable industry that enjoys steady demand, and Progressive has demonstrated its ability to outperform its peers in underwriting profitability.

The company is also well-positioned to perform if inflation and interest rates were to remain elevated. That's because it has pricing power, allowing it to adapt to rising costs, and it also earns interest on float (the cash it collects from premiums but hasn't yet paid out in claims).

Its stellar long-term performance and ongoing strong underwriting make Progressive an excellent blue chip stock to consider adding to your portfolio today.

Chubb

Chubb (NYSE: CB) is one of the world's largest publicly traded property and casualty insurers, recognized for its underwriting discipline, global diversification, and robust balance sheet. It operates across commercial and personal lines, with a reputation for serving high-net-worth individuals and complex corporate risks. Its conservative approach to risk, coupled with a broad international footprint, has enabled it to weather economic cycles well.

Chubb has been a solid dividend stock for investors, growing its payout for 32 consecutive years. With a yield of 1.4% and an average annual total return of 11.7% over the past two decades, the company offers investors a balanced combination of income and stock price appreciation. It also enjoys the benefits that Progressive does, such as pricing power and interest income, making it another solid blue chip stock to consider owning today.

S&P Global

S&P Global (NYSE: SPGI) plays a key role in markets. The company is perhaps best known for its S&P 500 index, but it also provides credit ratings, data, and analytics. Barriers to entry make it difficult to break into the credit ratings space, and S&P Global holds a 50% share of this market.

S&P Global's business model is resilient and scalable. Credit rating demand rises with bond issuance, while its index and data segments enjoy recurring fees from ETF licensing and subscriptions. The company also has low capital requirements, which enables it to enjoy high margins, recurring revenue, and a global reach.

The company has raised its dividend payout for 53 years, making it an exclusive member of the Dividend Kings club. While it offers a modest dividend yield of 0.7%, when combined with its stock price appreciation, S&P Global has returned 15.3% annually over the past two decades. For investors, S&P Global offers growth and a wide moat along with steady cash flows, making it a quality blue chip stock to own today.

Should you invest $1,000 in Berkshire Hathaway right now?

Before you buy stock in Berkshire Hathaway, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Berkshire Hathaway wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $671,477!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,010,880!*

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See the 10 stocks »

*Stock Advisor returns as of July 7, 2025

Courtney Carlsen has positions in Berkshire Hathaway and Progressive. The Motley Fool has positions in and recommends Berkshire Hathaway, Progressive, and S&P Global. The Motley Fool has a disclosure policy.

If you're on the hunt for an investment that can provide a steady stream of passive income, look no further than dividend stocks. One that stands out is Energy Transfer (NYSE: ET), which boasts an impressive 7.1% dividend yield. What makes Energy Transfer particularly attractive is its stable cash flow from midstream operations.

With the surge in oil and gas production across the U.S. and a regulatory landscape becoming increasingly favorable for expansion, Energy Transfer is well positioned. Here's what investors should know today.

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Energy Transfer stands to benefit from U.S. oil and gas production

The first thing investors should be aware of is that Energy Transfer operates as a master limited partnership (MLP). MLPs don't pay taxes at the corporate level. Instead, profits are distributed to investors (limited partners), allowing MLPs to return more cash to their unitholders compared to typical corporations. This is why Energy Transfer offers an appealing distribution yield of over 7%.

As a midstream operator, Energy Transfer earns revenue by transporting, storing, and processing oil, gas, and natural gas liquids under long-term contracts. Its contracts are often fee-based, which can help stabilize revenue. This reliable cash flow also enables consistent, high distributions to investors, which the company aims to grow between 3% to 5% annually.

Energy Transfer boasts one of the largest and most diversified portfolios of energy infrastructure in the United States, including major natural gas liquids, crude oil, and natural gas pipelines, as well as storage facilities, export terminals, and processing plants.

Its scale provides it with geographic reach across key basins, enabling it to serve upstream drillers, downstream refiners, and other markets. Its location in those key regions means it benefits from the network effect. In other words, as more producers and end users connect, its infrastructure becomes more valuable.

With the U.S. aiming to increase energy production and achieve American energy dominance under President Donald Trump, Energy Transfer stands to benefit from higher volumes being transported and processed across its extensive infrastructure network.

It has improved its financial position

One criticism of Energy Transfer is that it has been aggressive in its acquisitions and capital-intensive projects, utilizing debt or raising capital through unit sales to fund them. Major acquisitions and projects in recent years include its $3.25 billion deal to acquire WTG Midstream Holdings and spending $2.7 billion to expand the Hugh Brinson Pipeline. The deals help to expand Energy Transfer's pipeline and processing network, but some worry that it has increased its leverage to do so.

The company has made progress in reducing its debt burden and strengthening its financial position. Over the past several years, it has utilized excess cash flow to reduce debt and improve its net debt-to-EBITDA ratio.

We can see this progress in Energy Transfer's leverage ratio. According to the company, its leverage ratios are now in the lower half of its target range of 4.0 to 4.5 times. Based on approximately $60.6 billion in total debt and $15.7 billion in EBITDA, the company has a debt-to-EBITDA ratio of 3.85, which is on the lower end for the company over the past decade.

Investors should consider this before buying Energy Transfer

As an MLP, Energy doesn't pay taxes and instead passes on profits to its investors. This can help avoid double taxation that corporations face, but it also comes with some unique tax treatment. Profits are distributed to investors (called unitholders), typically via a Schedule K-1 form, which can complicate tax filing and create headaches for investors accustomed to simpler forms.

They may also generate UBTI (unrelated business taxable income), which can be a problem if held in retirement accounts such as IRAs. If you earn more than $1,000 in UBTI, you must file a Form 990-T and may owe taxes (even though IRAs are tax-deferred). This makes a stock like Energy Transfer ideal for a taxable brokerage account.

This added tax treatment is something to consider if you are investing in Energy Transfer or similar companies that are structured as a master limited partnership. However, if you're willing to deal with the additional tax implications, Energy Transfer is a solid dividend stock to add to your portfolio today.

Should you invest $1,000 in Energy Transfer right now?

Before you buy stock in Energy Transfer, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Energy Transfer wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $713,547!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $966,931!*

Now, it’s worth noting Stock Advisor’s total average return is 1,062% — a market-crushing outperformance compared to 177% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

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*Stock Advisor returns as of June 23, 2025

Courtney Carlsen has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) has delivered exceptional returns over the past 60 years thanks to the leadership and investing acumen of CEO Warren Buffett and the late Charlie Munger. The two built Berkshire into a respected global conglomerate, exemplifying the value of long-term, strategic investing, and created substantial wealth for investors along the way.

The company's disciplined, value-oriented investment approach focuses on businesses with strong economic moats and competitive advantages for sustainable growth. Its long-term success is a reason why many investors closely follow Berkshire's investment portfolio for inspiration.

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As Warren Buffett hands leadership to Greg Abel, questions arise about Berkshire's future. While the company has excelled up until now, could investing in Berkshire Hathaway today set you up for life? Let's dive into the expansive business and its competitive moat to find out.

Berkshire Hathaway's diverse portfolio of businesses

Berkshire Hathaway embodies the success of long-term, value-oriented investing. It's largely recognized for Warren Buffett's long-held positions in companies such as Coca-Cola and American Express. However, its true strength comes from its diverse operations, especially its insurance segment, which is a key revenue source.

Berkshire's insurance business acts as an engine for its portfolio, generating income through upfront premium collections while claims are paid out later. This creates a "float" -- a cash reserve that can be invested in Treasuries or other short-term, safe instruments, thereby boosting overall revenue. For example, last year, its insurance underwriting business generated $9 billion in earnings, while its insurance investment income contributed $13.7 billion in earnings.

The benefits of this approach are particularly pronounced during periods of rising interest rates. For example, Berkshire's $13.7 billion in investment income last year was more than double what it earned in 2022, highlighting how its large insurance business can help the company do well in various economic conditions.

In addition, Berkshire Hathaway owns numerous companies across various industries, including transportation, such as railroads, where 28% of all freight in the U.S. is still transported. It also owns consumer goods brands, like Dairy Queen, See's Candies, Duracell, and Fruit of the Loom. It also has exposure to utilities and energy through Berkshire Hathaway Energy.

Looking ahead to what Berkshire's future has in store

Investors considering Berkshire Hathaway amid recent leadership changes may feel both anticipation and uncertainty. In November 2023, the company lost Charlie Munger, a key figure; meanwhile, Warren Buffett is set to step down as CEO at the end of this year. The transition marks a significant change for the company.

Buffett has announced that Greg Abel will become CEO, a role he has prepared for since joining Berkshire in the late 1990s. Abel's success will depend on maintaining the long-term investment philosophy and culture established by Buffett and Munger. Additionally, Todd Combs and Ted Weschler, who joined Berkshire as investment managers in 2010 and 2012, respectively, will assume a more significant role in managing Berkshire's extensive portfolio.

Before joining Berkshire Hathaway, Combs ran Castle Point Management from 2005 to 2010, achieving a cumulative return of 34% and beating the Great Recession bear market in the process. Meanwhile, Weschler's impressive investment track record is evident in his transformation of a $70,000 Roth IRA into $264 million over three decades, along with returns of 1,236% at Peninsula Capital Advisors from 1999 to 2011.

Combs and Weschler were instrumental in getting Berkshire Hathaway to invest in Apple in 2016, which has since become one of the conglomerate's best-performing stocks over the past decade. Now, they will have a chance to carry on Berkshire's investing legacy.

Will buying Berkshire Hathaway set you up for life?

I think Berkshire is one of the best stocks investors could buy today. To me, investing in Berkshire is akin to investing in a diversified portfolio of stocks, given its extensive holdings of privately held businesses across various industries, which continue to deliver solid returns.

That said, as much as I like Berkshire for its wide-ranging business and massive cash pile, investors should ensure that they aren't too reliant on any single stock to build their wealth. Most importantly, investors should develop the habit of consistently investing in high-quality companies, such as Berkshire Hathaway, as part of a diversified approach to building up wealth over time.

Should you invest $1,000 in Berkshire Hathaway right now?

Before you buy stock in Berkshire Hathaway, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Berkshire Hathaway wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $658,297!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $883,386!*

Now, it’s worth noting Stock Advisor’s total average return is 992% — a market-crushing outperformance compared to 172% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of June 9, 2025

American Express is an advertising partner of Motley Fool Money. Courtney Carlsen has positions in American Express and Berkshire Hathaway. The Motley Fool has positions in and recommends Berkshire Hathaway. The Motley Fool has a disclosure policy.

Exciting times are ahead as flying taxis inch closer to becoming a reality. Archer Aviation (NYSE: ACHR) is at the forefront of this groundbreaking technology and is gearing up to launch its flying taxis for the first time this year in the United Arab Emirates.

This could be a monumental leap forward as Archer aims to take urban transportation to new heights. Archer Aviation stock is up 89% over the past year. However, recent market volatility has weighed on stocks overall, and Archer Aviation is now 43% below its 52-week high.

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With stock trading at a cheaper price, investors may be tempted to scoop up some shares. Before you do that, there are a few things to consider first.

Air taxis could be up and running as soon as this year

Archer Aviation is one of the leading companies developing electric vertical takeoff and landing aircraft (eVTOL), which could upend urban transportation as we know it. These vehicles, also known as flying taxis, are perfect for urban transportation due to their agility and ability to operate in small spaces. Their electric motors also enable quieter operation with less pollution.

Archer is making solid headway. Last December, it finished constructing its 400,000-square-foot manufacturing facility in Covington, Georgia. Production is slated to begin this year. Archer also intends to launch a commercial air taxi service in the United Arab Emirates (UAE), which would be the first operational air taxi service in the world.

With the help of Abu Dhabi Aviation, Archer plans to launch its air taxi service later this year. The company plans to deploy small fleets of its Midnight aircraft to early adopters, like Abu Dhabi Aviation and the recently signed Ethiopian Airlines, over the next 18 to 24 months as part of its "Launch Edition" commercialization program.

Archer is making progress on certification in the U.S.

The company is still in the early stages of what could be massive growth in a budding industry. A few years ago, researchers at Morgan Stanley estimated that the total addressable market for urban air mobility could grow to $1 trillion by 2040 and as high as $9 trillion by 2050. However, technology has some serious hurdles to overcome before it becomes a reality.

In February, the Federal Aviation Administration (FAA) also recognized Archer with its Part 141 certificate, formally recognizing it as a regulated institution for pilot training. With the green light from the FAA, Archer can begin training and qualifying pilots for its future fleet of eVTOL aircraft.

This is the third of four certificates the company has been waiting for from the FAA to launch operations. It is awaiting type certification for its Midnight aircraft, which will be the final certification before it can begin commercial operations in the U.S. Archer is hoping to get its type certification sometime this year. However, some have expressed concern that FAA approval could take longer than expected.

JPMorgan analyst Bill Peterson warned investors that commercialization is proving longer than imagined. Peterson says that 2025 is likely off the table, as the rollout in the UAE is proving to be different from what was expected, and that "investors betting on a quick overseas launch may need to adjust their timelines." Peterson has also warned that expectations for total addressable market size have declined from the sky-high projections of three to four years ago.

This is where investors want to keep an eye on Archer's cash burn rate at a time when it still isn't generating any meaningful revenue. The eVTOL company has $1 billion in liquidity. The company posted a net loss of $536 million in 2024, and the burn rate could pick up as it ramps up manufacturing.

ACHR Net Income (TTM) data by YCharts

Is it a buy?

The risk Archer Aviation investors face today is the timing of certifications, production, and the rollout of commercial operations. If these take longer than expected, it will be a while before the business starts to generate serious cash flow.

Archer has ample liquidity right now, so its cash needs aren't an immediate concern. However, the cash burn and a potentially longer timeline could weigh on the stock if it needs to continue raising capital as it expands production.

For this reason, investing in Archer Aviation stock isn't for everyone. The company operates in an exciting new industry, and its growth story is still in the early innings. If you buy the stock, treat your investment in Archer as a speculative growth play and only risk a small portion of your portfolio that you are comfortable with on this high-risk, high-reward stock.

Should you invest $1,000 in Archer Aviation right now?

Before you buy stock in Archer Aviation, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Archer Aviation wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $591,533!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $652,319!*

Now, it’s worth noting Stock Advisor’s total average return is 859% — a market-crushing outperformance compared to 158% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of April 21, 2025

JPMorgan Chase is an advertising partner of Motley Fool Money. Courtney Carlsen has positions in Morgan Stanley. The Motley Fool has positions in and recommends JPMorgan Chase. The Motley Fool has a disclosure policy.

As artificial intelligence use cases grow, the demand for energy from data centers is set to skyrocket. This ever-increasing need for power opens doors for innovative energy solutions, and nuclear energy is rapidly coming back in favor, backed by nations eager to embrace it.

Enter NuScale Power (NYSE: SMR), an innovator in advanced small modular reactors that could revolutionize how nuclear energy is distributed. These compact reactors promise efficient deployment and could help reduce the cost of deploying nuclear power. Could investing in NuScale be your ticket to millionaire status? Let's explore the company and its opportunity to find out.

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NuScale's nuclear innovation

Small modular reactors (SMRs) are cutting-edge technology that could change nuclear power generation as we know it. Founded in 2007, NuScale designs compact SMRs that could provide a scalable, efficient, and safer alternative to traditional nuclear plants.

Its NuScale Power Module is the first SMR to receive a standard design approval from the U.S. Nuclear Regulatory Commission (NRC), giving NuScale a critical first-mover advantage over peers. The NRC has approved its 50 megawatt-electric (MWe) design, and NuScale is looking to upsize that reactor to 77 MWe and expects this larger version to receive approval sometime this year. Up to 12 modules can be assembled per plant, providing up to 924 MWe in energy.

NuScale has significant backing from Fluor, a construction company that provides services across industries, including energy. Since 2011, Fluor has invested over $600 million in NuScale to support its development and has been instrumental in helping NuScale bring its VOYGR power plant to the market.

What's next for NuScale Power

NuScale is looking to build its plants efficiently and is targeting existing coal plants, which could save up to 15% to 35% on construction costs. With Fluor's help, NuScale is developing a small modular reactor power station at a former coal plant in Doicești, Romania. This project is known as the VOYGR-6 SMR power plant and will consist of six NuScale Power Modules and generate 462 megawatts of electricity.

The project is backed by public and private funding, including contributions from the United States, Japan, South Korea, and the United Arab Emirates. The U.S. Export-Import Bank has committed up to $99 million for initial work, with additional funding of up to $4 billion being considered for the project's deployment.

Investors should consider the following

NuScale's technology is exciting, but investors shouldn't ignore the risks of buying the stock. For one, the company continues to rack up losses as it works to get its technology approved and build its facilities. Over the last 12 months, NuScale has lost $137 million against $37 million in revenue. In the fourth quarter, the company bolstered its balance sheet with $446.7 million in cash -- providing it with a runway for the next few years.

Second, it will take several years before NuScale achieves widespread commercial operations. The target date for opening its Romanian plant is 2029, and four years is a long time when things could go wrong. Any cancellations (such as with its UAMPS project a couple of years ago), delays, or a lack of customer interest would be detrimental for the stock.

Is NuScale Power a millionaire-maker stock?

NuScale Power has long-term potential and could be a key player in helping countries deploy nuclear power on a large scale. Over the past few years, 31 countries have signed a Declaration to Triple Nuclear Energy by 2050. If NuScale's products work well and prove cheaper and more efficient, it could grow tremendously.

NuScale certainly has millionaire-maker potential once it gains footing, but it remains highly speculative at this point, leaving it best suited for aggressive investors. Even so, those wishing to own the stock should maintain a small position as part of a more extensive, diverse portfolio and build up that position over time as NuScale reaches key milestones and works toward commercial operations at scale.

Should you invest $1,000 in NuScale Power right now?

Before you buy stock in NuScale Power, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and NuScale Power wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $590,231!*

Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

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*Stock Advisor returns as of April 5, 2025

Courtney Carlsen has no position in any of the stocks mentioned. The Motley Fool recommends NuScale Power. The Motley Fool has a disclosure policy.