International stocks are having their day in the sun right now. Nine of the top 10 best-performing Vanguard exchange-traded funds (ETFs) focus on the stocks of companies based outside the U.S. However, anyone who wants to generate significant long-term returns can’t afford to overlook U.S. stocks.
The best U.S. stocks to buy are those with businesses contributing to building America’s tomorrow. Here are three such long-haul investments to consider.
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1. Berkshire Hathaway
I can’t think of a better cheerleader for U.S. business than Berkshire Hathaway (BRK.A -0.32%) (BRK.B -0.70%) chairman and CEO Warren Buffett. He wrote to Berkshire shareholders earlier this year that “America is Exhibit A” of how capitalism “can work wonders unmatched by other economic systems.” Buffett also acknowledged that “Berkshire would not have achieved its results in any locale except America.”
Berkshire Hathaway plays an important role in helping the U.S. prosper. Its insurance businesses protect millions of Americans from property and casualty risks. Berkshire Hathaway Energy serves around 5.3 million retail customers and operates roughly 21,000 miles of natural gas pipelines. The company’s BNSF Railways transports products across the United States.
While insurance, energy, and rail are Berkshire’s three biggest units, there’s a lot more to the conglomerate. Berkshire owns over 60 subsidiaries representing nearly every major sector. Its investment portfolio owns stakes on 40-plus companies, most of which are based in the U.S., including highly successful American businesses such as Apple, Coca-Cola, and Chevron.
Will Berkshire Hathaway be able to continue its success once Buffett steps down as CEO? I think so. So does Buffett himself. The legendary investor told Berkshire shareholders at their annual meeting a few weeks ago that he thinks the company’s prospects will be even better under his successor, Greg Abel, than they have been under his leadership.
2. Enterprise Products Partners
The U.S. needs energy to thrive. This is becoming even more apparent with the data centers that host artificial intelligence (AI) applications requiring massive amounts of electricity. Natural gas and natural gas liquids (NGLs) play an especially critical role in meeting these growing power needs. And Enterprise Products Partners (EPD -1.23%) ranks as one of the top companies getting those fuels to where they need to go.
Enterprise owns more than 50,000 miles of pipeline across the U.S. The limited partnership (LP) also operates 43 natural gas processing trains, 26 fractionators (equipment that separates hydrocarbons into their individual components), facilities that store over 300 million barrels of liquids, and additional midstream energy assets.
Other parts of the world depend on the U.S. for energy, too. The U.S. especially has a cost advantage in producing NGLs. The U.S. is also the top exporter of liquefied petroleum gas (LPG). Enterprise Products Partners transports roughly one-third of total U.S. LPG exports, making it the world’s largest independent supplier of LPG.
I particularly like this stock because of its distribution and its resilience. Enterprise’s forward distribution yield is 6.7%. The LP has increased its distribution for 26 consecutive years. It has also generated steady cash flow throughout the past 20 years, even during periods of tumult in the oil and gas industry.
3. Intuitive Surgical
Building America’s tomorrow also includes improving the health of Americans. Many U.S. companies are working toward that goal. Intuitive Surgical (ISRG -0.79%) stands out as one of the best. It pioneered robotic surgery more than two decades ago with its da Vinci system and continues to dominate the industry.
More than 17.7 million procedures have been performed with Intuitive’s da Vinci surgical robots. Almost 2.7 million of those procedures were done just last year. Healthcare providers like the company’s technology, giving Intuitive Surgical a net promoter score (NPS) of 75. Any NPS above 70 is considered “world-class.”
Replacement instruments, accessories, operating leases, and services generate tremendous recurring revenue for Intuitive Surgical. In 2024, 84% of the company’s total revenue was recurring. This gives Intuitive financial stability that few other businesses have.
Intuitive Surgical continues to deliver robust growth. That should continue for a long time to come. The company estimates that around 8 million procedures are performed each year for which it already has products and clearances with its da Vinci system. Intuitive thinks that the opportunity could jump to 22 million annual procedures with products and clearances under development.
Keith Speights has positions in Apple, Berkshire Hathaway, Chevron, Enterprise Products Partners, and Intuitive Surgical. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, Chevron, and Intuitive Surgical. The Motley Fool recommends Enterprise Products Partners. The Motley Fool has a disclosure policy.