10 Best Stocks to Buy According to Seth Klarman

1. Willis Towers Watson Public Limited Company (NASDAQ:WTW)

Baupost Group’s Equity Stake: $575.34 Million

Number of Hedge Fund Holders: 48

Willis Towers Watson Public Limited Company (NASDAQ:WTW) is a financial services provider that operates as an advisory, broking, and solutions company. It provides data-driven solutions in the areas of people, risk, and capital. It is turning out to be one of the best-performing insurance stocks, going by the 7% year-to-date gain, adding to the 22% gain last year.

Willis Towers Watson Public Limited Company (NASDAQ:WTW) delivered mixed fourth quarter and full year 2024 results on February 4. Revenue was up by 4% to $3 billion on a reported basis and 5% up on an organic basis. The company’s margin expanded by 140 basis points, driven by cost savings, leading to a 9% increase in adjusted earnings to $8.13 a share. Analysts expect the insurance broker to deliver a 1.4% year-over-year increase in earnings in 2025, in line with its trend of beating estimates in the past four quarters.

Willis Towers Watson Public Limited Company (NASDAQ:WTW) is well positioned to benefit as global businesses face increasingly complex risks, consequently fueling demand for sophisticated risk management and insurance brokerage services. Additionally, the company has sought to strengthen its growth prospects by expanding to offer its services in Saudi Arabia. It has also rolled out a new insurance brokerage service in Japan, which aids in strengthening its Corporate Risk & Broking business.

While we acknowledge the potential of Willis Towers Watson Public Limited Company (NASDAQ:WTW) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than WTW but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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