10 Best Financial Stocks To Buy According to Hedge Funds

3. Berkshire Hathaway Inc. (NYSE:BRK.B

Number of Hedge Fund Holders: 120

One of the Best Financial Stocks, Berkshire Hathaway Inc. (NYSE:BRK.B) is a holding firm that has several distinct subsidiaries that do a variety of activities. The company’s primary business is insurance, which is mostly handled by Geico, Berkshire Hathaway Primary Group, and Berkshire Hathaway Reinsurance Group. Over the years, Berkshire has used the surplus funds from these and other businesses to buy Burlington Northern Santa Fe (a railroad), Berkshire Hathaway Energy (a distributor of utilities and energy), and the businesses that comprise its manufacturing, service, and retailing businesses (including five of its biggest noninsurance pretax earnings generators: Precision Castparts, Lubrizol, Clayton Homes, Marmon, and IMC/ISCAR).

The conglomerate is distinct in that it operates entirely decentralized. In 2024, the company ended the year up more than 23.0%.

Berkshire Hathaway Inc. (NYSE:BRK.B) reported solid growth in net earnings for Q3 2024, hitting $26.3 billion, as opposed to a loss of $12.8 billion in Q3 2023, fueled by significant investment gains of $16.2 billion. Operating earnings remained resilient at $10.1 billion, backed by insurance investment income growth of 48% YoY to $3.7 billion. The insurance float rose by $5 billion to $174 billion, and the $2.9 billion share repurchase shows smart capital usage.

Results were also strengthened by growth in BNSF and Berkshire Hathaway Energy. In Q3 of 2024, Berkshire Hathaway Energy reported a huge jump in earnings, hitting $1.63 billion, up from $498 million in Q3 2023, marking a 227% increase. BNSF saw earnings jump to $1.38 billion, compared to $1.22 billion in Q3 2023, showing a 13% growth YoY.