10 Best Stocks to Buy According to Seth Klarman

2. Liberty Global Ltd. (NASDAQ:LBTYA)

Baupost Group’s Equity Stake: $518.42 Million

Number of Hedge Fund Holders: 38

Liberty Global Ltd. (NASDAQ:LBTYA) is a communication services company that provides broadband internet, video, fixed-line telephony, and mobile communications services to residential and business customers. It also offers value-added broadband services. The stock was up by 24% in 2024, affirming why it is one of the best stocks to buy.

Nevertheless, the stock has pulled back significantly and is down by about 11% year-to-date. Amid the pullback, analysts believe Liberty Global Ltd. (NASDAQ:LBTYA) is undervalued, considering the conservative European and UK telecom industry benchmarks. Additionally, the company remains in a solid financial position with an impressive 67.5% gross profit margin and a revenue growth of over 3%.

The completion of Liberty Global Ltd.’s (NASDAQ:LBTYA) spin-off of Sunrise, its Swiss business, is expected to generate substantial value for shareholders. With the help of fiber rollout partnerships in the Benelux region and operational advancements with Virgin Media O2 in the UK, the company anticipates roughly $5 billion in total returns for the year.

Following the divestment, Liberty Global’s portfolio consists of a 50% holding in VodafoneZiggo in the Netherlands, a 50% share in Virgin Media O2 in the UK, and Telenet in Belgium, Along with a $3 billion venture capital portfolio. Additionally, Liberty Global has investments in more than 75 other software, infrastructure, and multimedia firms, including Formula E Holdings, Lionsgate, and Univision.