In this article, we’ll explore the 10 Stocks Jim Cramer Thinks You Should Check Out.
Jim Cramer draws an engaging parallel between fantasy football and stock investing as the NFL season begins. Cramer uses this occasion to introduce his concept of “Fantasy Stock Football.” He likens selecting stocks for an investment portfolio to drafting players for a fantasy football team, emphasizing how both require strategic thinking and role balancing.
“While you’re enjoying the game, I want to get you into the NFL spirit with some Fantasy Stock Football.”
Unveiling Jim Cramer’s “Fantasy Stock Football” Strategy
Cramer enjoys blending real-world sports with market insights to offer a unique perspective on investing. He notes that, like fantasy football teams, investment portfolios consist of various stocks that play different roles, contributing to overall performance. Reflecting on the previous year, he highlights that the 11 stocks he recommended have risen an average of 38%, outperforming the S&P 500’s 23% gain. This comparison underscores his belief in the strategic approach to both fantasy football and stock selection.
“Now look, I love comparing real teams and real players to my favorite stocks. These are two great tastes that taste great together. More importantly, it gives me another angle to help you—I’ve got to teach you about the market in any way I can. Picking stocks for your portfolio has a lot in common with drafting players for your fantasy football team.
Fifty-five million people do it. Different positions play different roles for your fantasy team, just like different stocks fill different roles in your portfolio. By the way, if you look at the 11 stocks I highlighted when we did this a year ago, they’re now up an average of 38%, compared to the S&P 500, which is up 23% during the same period.”
Cramer’s Warning Against Overreacting to Market Fluctuations
Jim Cramer highlights some key mistakes investors are making and emphasizes the importance of a strategic approach to investing. He points out that many investors are making errors by overreacting to market fluctuations and trying to time their moves poorly. According to Cramer, sometimes the best strategy is to do nothing and avoid making rash decisions.
“People keep making a ton of mistakes when they should really just be sitting on their hands. Sometimes the best thing you can do is absolutely nothing. Instead, they’re acting out every possible fantasy nightmare when it comes to the market. Not only is it tedious and foolhardy, but it’s also very expensive for anyone who’s running with this non-strategy. You can see the averages, which started out like a house on fire today, only to fizzle out by the end.”
Jim Cramer: Trust Powell’s Strategy Amid Economic Data Volatility
Cramer criticizes the persistent doubts about Federal Reserve Chair Jerome Powell. He believes Powell has managed the transition from tightening to easing policies well, despite earlier criticism for slow rate hikes. The ongoing panic over economic data—whether strong or weak—shows a lack of faith in Powell’s ability to adjust rates appropriately. Cramer asserts that the Fed will act as needed, whether that means a 25 or 50 basis point cut, and advises investors to trust Powell’s strategy rather than being swayed by market noise.
“There’s a belief that the Federal Reserve under Jerome Powell will somehow screw up the transition as they shift from tightening to stop inflation to easing to combat recession. At this point in Powell’s tenure, I find it insane that he never seems to get the benefit of the doubt. Well, yes, he started raising rates a little too late in 2022, but it’s hard to blame him for that. Powell didn’t want to hit the brakes on the economy when we were still dealing with a healthcare emergency, which is why he didn’t tighten in 2021.
Who would have thought that COVID would run its course so quickly? Who could have imagined that the Biden administration would be able to pass generous spending packages right when we stopped needing them, sparking an inflationary run? Since then, though Jerome Powell has done pretty much everything right. Once rolling, he raised rates with vigor because our country had some of the worst inflation in recent history.
The rate hikes, one after another, did manage to tamp down inflation. Everything that could be controlled by the Fed is now going the right way. Prices have come down all over the place, though many are still elevated compared to 2019 levels. But I don’t think anyone surveying the situation could honestly contend that Powell is going in the wrong direction…
What’s most important, though, is that if you have faith in Jerome Powell, as I do, you know he’ll give us a 25 basis point cut if that’s what’s needed. And if the economy suddenly gets weaker, then a 50 basis point cut would be on the table. Why is that so hard to understand? People keep freaking out about things that simply won’t be a problem, given that we have a competent central bank. They’ve done this during the run-up to every Fed easing cycle I can recall. You always get these tense moments—like right now—filled with wild swings, full of sound and fury, and of course, yes, signifying nothing.”
Jim Cramer Defends AI, Calls Early Criticisms Misguided
Cramer addresses skepticism around artificial intelligence (AI), arguing that it is premature to dismiss its potential. While current AI developments may not seem revolutionary, he believes that significant advancements, such as breakthroughs in cancer diagnosis, indicate that AI’s impact will grow over time.
“We’ve gone from a world where artificial intelligence (AI) was supposed to solve everything to a world where AI is treated as just a robust sham, except for when ServiceNow gets one more contract, of course. At its apex, AI was supposed to make organizations much more efficient, improve gross margins magically, and create inventions vastly better than the status quo. Sadly, we don’t see much of anything tangible, other than competing chatbots—rivaling inquiry systems that can generate information in sentence form, including hallucinations. We’re told the whole thing’s a canard, and this reality has slapped true believers like me in the face.”
Jim Cramer believes that dismissing AI as a failure is premature. He argues that people are underestimating its potential, as we are still early in discovering its practical applications. According to Cramer, recent advances in accelerated computing and generative AI have already led to significant breakthroughs, such as improvements in cancer diagnosis. While the excitement around AI in healthcare may suggest we’re on the brink of a major revolution, Cramer points out that we’re actually witnessing a gradual but important evolution in the technology’s capabilities.
“Now look, I think that’s just plain wrong. It’s way too early to view AI as a waste. People know nothing. We’re only a couple of years into finding use cases, for heaven’s sake. We just got word that accelerated computing and generative AI have led to a breakthrough in cancer diagnosis, which could be very important. That’s a huge thing. But the hype of what this technology could mean for healthcare seems to illustrate that we aren’t seeing a revolution yet—we’re just seeing a faster evolution.”
Our Methodology
The article reviews a recent episode of Jim Cramer’s Mad Money, where he discussed and recommended various stocks. It highlights ten companies that Cramer featured and explores their perception among hedge funds. The companies are ranked from the least owned to the most owned by hedge funds.
At Insider Monkey we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
10 Stocks Jim Cramer Thinks You Should Check Out
10. SpartanNash Company (NASDAQ:SPTN)
Number of Hedge Fund Investors: 17
Jim Cramer is very enthusiastic about SpartanNash Company (NASDAQ:SPTN), expressing strong approval for the company. He appreciates how SpartanNash Company (NASDAQ:SPTN) aligns with his expectations and investment criteria, highlighting his positive view of the stock. Cramer’s excitement reflects his belief in SpartanNash Company (NASDAQ:SPTN)’s strong performance and potential.
“SpartanNash is one I really like. I like that one, man! I like that it does exactly what you say.”
SpartanNash Company (NASDAQ:SPTN)’s wholesale division, which supplies grocery and food products to independent retailers and online platforms, remains a key growth driver. SpartanNash Company (NASDAQ:SPTN)’s diversified business model, which includes both retail and wholesale, helps it weather market changes. SpartanNash Company (NASDAQ:SPTN)’s current trading price of around $22.09, combined with a low price-to-earnings ratio of 14.25 and a beta of 0.39, suggests it is undervalued and less volatile.
SpartanNash Company (NASDAQ:SPTN) offers a compelling investment opportunity due to its solid financial performance, strategic initiatives, and strong position in the grocery market. In Q2 2024, SpartanNash Company (NASDAQ:SPTN) reported earnings per share (EPS) of $0.59, exceeding analyst expectations of $0.56. Although its revenue decreased by 3.5% to $2.23 billion, SpartanNash Company (NASDAQ:SPTN) maintained a healthy return on equity of 8.87%, showing that it manages its operations effectively even in tough market conditions.
Additionally, with nearly 85% of its shares held by institutional investors, there is strong confidence in its stability. Given its focus on cost control, strategic partnerships, and steady dividend payments, SpartanNash Company (NASDAQ:SPTN) is well-positioned for long-term growth and presents an attractive investment for those seeking stability and income in the grocery industry.
9. Realty Income Corporation (NYSE:O)
Number of Hedge Fund Investors: 19
Jim Cramer advises investing in Realty Income Corporation (NYSE:O) if you’re looking for a monthly dividend. He has been recommending Realty Income Corporation (NYSE:O) for some time and has seen a 10% gain in a short period. Cramer suggests buying Realty Income Corporation (NYSE:O) now and then waiting for a price dip, as its performance can be influenced by interest rates.
“If you want monthly dividends, you know the one I’ve been suggesting for a long time—Realty Income Inc. I’m up 10% in just a short time. I’d buy some and then wait for it to come down, because it is a little dependent on where interest rates are.”
Realty Income Corporation (NYSE:O) stands out as a strong investment due to its consistent income generation and solid recent performance. As a real estate investment trust (REIT) known for paying monthly dividends, Realty Income Corporation (NYSE:O) focuses on net lease properties across various sectors. In its Q2 2024 earnings, Realty Income Corporation (NYSE:O) reported an 8.5% increase in funds from operations (FFO) per share, rising to $0.77 from $0.71 a year ago.
Realty Income Corporation (NYSE:O)’s revenue also grew to $887.6 million, up from $832.4 million in the same quarter last year, showing strong leasing activity and portfolio growth. With a property portfolio of over 12,000 sites and a high occupancy rate of 98%, Realty Income Corporation (NYSE:O) demonstrates effective management and a solid market presence. Recent strategic moves, such as acquiring $1.5 billion worth of retail and commercial properties, further diversify Realty Income Corporation (NYSE:O)’s assets and revenue sources, enhancing stability and future growth.
8. Whirlpool Corporation (NYSE:WHR)
Number of Hedge Fund Investors: 24
Jim Cramer views Whirlpool Corporation (NYSE:WHR) as too inconsistent for his investment strategy. He believes Whirlpool Corporation (NYSE:WHR)’s erratic performance does not meet his criteria for buying stocks. Due to this level of unpredictability, Cramer does not consider Whirlpool Corporation (NYSE:WHR) a suitable investment for him.
“Too inconsistent. They don’t get my buy with that level of inconsistency. I won’t tolerate it.”
In the first quarter of 2024, Whirlpool reported revenue of $4.65 billion, which was slightly lower than the previous year due to reduced demand. However, it achieved adjusted earnings per share (EPS) of $2.66, surpassing analyst expectations.
Whirlpool Corporation (NYSE:WHR)’s cost-cutting initiatives, aimed at saving $800 million by 2023, have improved its profit margins despite economic challenges. Whirlpool Corporation (NYSE:WHR) is also focusing on expanding its smart home products and energy-efficient appliances, meeting the growing demand for sustainable and advanced home technology. Additionally, Whirlpool Corporation (NYSE:WHR)’s dividend yield of over 4% underscores its dedication to providing value to shareholders.
7. Casey’s General Stores Inc. (NASDAQ:CASY)
Number of Hedge Fund Investors: 36
Jim Cramer is very positive about Casey’s General Stores Inc. (NASDAQ:CASY), praising its performance. He has consistently highlighted Casey’s General Stores Inc. (NASDAQ:CASY) in his analyses and commends it for doing an excellent job. Cramer’s favorable view reflects his confidence in Casey’s General Stores Inc. (NASDAQ:CASY)’s strong performance and future prospects.
“Casey’s General is terrific. I’ve liked it. We’ve done a number of takeouts on it, and it’s really done a terrific job.”
Casey’s General Stores Inc. (NASDAQ:CASY) is an attractive investment due to its recent strong performance and strategic growth efforts. In Q1 2024, Casey’s General Stores Inc. (NASDAQ:CASY) saw a 7% increase in same-store sales and a 12% rise in total revenue from the previous year, with an EPS of $2.45 that exceeded expectations of $2.31. This strong performance reflects high consumer demand and effective operations.
Casey’s General Stores Inc. (NASDAQ:CASY) recent acquisition of 119 stores from the Pilot Company will expand its market presence and drive further revenue growth. Casey’s General Stores Inc. (NASDAQ:CASY) is also enhancing its product offerings, including its popular pizza and food service options, which meet the growing consumer preference for convenient dining.
6. Cummins Inc. (NYSE:CMI)
Number of Hedge Fund Investors: 38
Jim Cramer compares Cummins Inc. (NYSE:CMI) to Jahmyr Gibbs of the Detroit Lions, noting that while both face some criticism—Cummins for being an engine maker in a freight recession and Gibbs for sharing the workload with David Montgomery—these concerns might be overstated. Cramer points out that Cummins Inc. (NYSE:CMI) is growing through new opportunities, such as selling backup power units for data centers, which was highlighted in their recent earnings call.
“Finally, let’s talk Cummins, the engine maker with major exposure to the data center market. It might be the Detroit Lions running back, Jahmyr Gibbs, of the stock market. The knock on Cummins is that it’s an engine maker during a freight recession, and truck orders are weak right now. The knock on Gibbs is that he has to share the workload with fellow Lions running back, David Montgomery.
I think both concerns are overblown. Cummins is seeing growth with new ventures, like selling backup power units for data centers—we heard them talk about that during their recent earnings call. Meanwhile, Gibbs is thriving because he’s a much better pass catcher than Montgomery.”
Cummins Inc. (NYSE:CMI) is a strong investment option due to its recent solid performance and forward-looking strategies. In Q2 2024, Cummins Inc. (NYSE:CMI) reported an EPS of $5.26, surpassing the expected $4.85, and earned $8.80 billion in revenue, exceeding the forecast of $8.33 billion. This 2.3% increase in revenue from the previous year was driven by high demand for its power generation and truck engines.
Cummins Inc. (NYSE:CMI) is also advancing in green technologies; its zero-emissions unit, Accelera, secured $75 million from the U.S. Department of Energy to boost manufacturing. Additionally, Cummins Inc. (NYSE:CMI)’s new battery joint venture with Daimler and PACCAR highlights its leadership in commercial vehicle electrification. Cummins Inc. (NYSE:CMI) has raised its full-year outlook, reflecting its growing market presence and commitment to alternative fuel technologies.
Parnassus Value Equity Fund stated the following regarding Cummins Inc. (NYSE:CMI) in its first quarter 2024 investor letter:
“Cummins Inc. (NYSE:CMI), a leader in diesel and alternative fuel engines and generators, guided to a shallower-than-expected downcycle in 2024. New rules from the Environmental Protection Agency are expected to drive higher demand for the company’s truck engines in the coming years.”
Now, how about the wide receiver position? For me, wide receivers are akin to turbocharged growth stocks. When they work, they can deliver incredible gains. Nvidia is the obvious stock market analog. A year ago, I compared it to Justin Jefferson of the Vikings, but then he got hurt and missed nearly half the season. Meanwhile, Nvidia was an unstoppable winner, so I’m changing course. Nvidia is now the *Tyreek Hill* of the stock market—the tremendous wide receiver speedster from the Miami Dolphins. Both are known for their blazing speed. Hill had the second-most fantasy points at the wide receiver position last year, and Nvidia speaks for itself.
Yet, both have their doubters—Nvidia has pulled back hard from its highs this summer as people worry about the durability of AI demand, while Hill supposedly has a hand injury. Guess what? I think they’ll both do great, even if there’s some near-term turbulence.”
5. Kimberly Clark Corporation (NYSE:KMB)
Number of Hedge Fund Investors: 43
Jim Cramer compares Kimberly Clark Corporation (NYSE:KMB) to a top NFL defense due to its consistent performance and solid dividend yield of 3.3%. He points out that Kimberly Clark Corporation (NYSE:KMB) achieved 4% organic growth in the latest quarter and is well-positioned for a strong year ahead, especially with potential rate cuts benefiting high-yielding consumer staples. Cramer uses the analogy of the Dallas Cowboys, highlighting that Kimberly Clark Corporation (NYSE:KMB), like the Cowboys’ defense, is among the best in its field.
“Kimberly-Clark is a Dallas-based company, and like the best NFL defenses, it can give you steady production from its 3.3% yield along with upside from real organic growth. They had 4% organic growth in the most recent quarter, and with rate cuts on the horizon, it’ll be a good year for high-yielding consumer staples, and Kimberly-Clark is among the best of the best. Hence the Cowboys analogy. Cowboys, don’t get mad at me—I thought your defense was great! You annihilated us Eagles when we went down to see you in Dallas.”
In the second quarter of 2024, Kimberly Clark Corporation (NYSE:KMB) reported an EPS of $1.96, beating expectations by $0.25, even though revenue fell by 2% from the previous year. The strength of its Personal Care and Consumer Tissue segments helps Kimberly Clark Corporation (NYSE:KMB) remain resilient in tough economic conditions.
Kimberly Clark Corporation (NYSE:KMB) has increased by about 21% year-to-date, indicating its appeal to investors looking for reliable returns. Overall, Kimberly Clark Corporation (NYSE:KMB)’s solid performance and strong product portfolio make it a promising choice for steady investment.
4. Super Micro Computer Inc. (NASDAQ:SMCI)
Number of Hedge Fund Investors: 47
Jim Cramer expresses skepticism about Super Micro Computer Inc. (NASDAQ:SMCI). He initially thought the Hindenburg report was solid but became less enthusiastic after Super Micro Computer Inc. (NASDAQ:SMCI) filed additional information the next day. While Cramer acknowledges that Super Micro Computer Inc. (NASDAQ:SMCI) has potential, he is concerned about the company’s need to improve its accounting practices, as highlighted by the Hindenburg report.
“I’m not a believer in this, to be honest. I thought the Hindenburg report was good. I wouldn’t have been as enthusiastic if it weren’t for that filing the company made the next day. I think Super Micro is good, but when you read the Hindenburg report, it’s clear they need to improve their accounting practices, and that’s what worries me.”
Super Micro Computer Inc. (NASDAQ:SMCI)’s recent financial performance has been impressive, with Q3 FY2024 revenue reaching $3.85 billion, fueled by high demand for its high-performance computing and AI infrastructure. By managing its operating expenses effectively, Super Micro Computer Inc. (NASDAQ:SMCI) has improved its earnings before interest and taxes (EBIT).
Analysts are optimistic, predicting a potential 72% increase in the stock price and revenue growth to $15.23 billion in 2024, with long-term revenue possibly hitting $24.1 billion by 2029. Additionally, being included in the S&P 500 index has enhanced investor confidence and spotlighted its competitive position. Super Micro Computer Inc. (NASDAQ:SMCI)’s Rack Scale Total Solution for AI storage is a standout product that aligns with the rising demand for AI systems.
Despite some concerns about cash burn and share dilution, Super Micro Computer Inc. (NASDAQ:SMCI)’s strong revenue growth, positive analyst projections, and strategic focus on AI and cloud computing make it a promising investment with significant growth potential.
Polen U.S. Small Company Growth Strategy stated the following regarding Super Micro Computer, Inc. (NASDAQ:SMCI) in its Q2 2024 investor letter:
“The second largest contributor to the Portfolio’s relative performance was Super Micro Computer, Inc. (NASDAQ:SMCI), a provider of high- performance, energy-efficient servers, which the Portfolio does not own. The stock declined notably in the quarter, providing a tailwind to relative performance. On a YTD basis, however, Super Micro is still our largest relative detractor, given its robust 1Q return.”
3. Nu Holdings Ltd. (NYSE:NU)
Number of Hedge Fund Investors: 59
Jim Cramer notes that while he appreciates the digital banking sector, he is cautious about investing in a stock that, despite being modestly profitable, has already surged by 72%. He advises waiting for Nu Holdings Ltd. (NYSE:NU) to stabilize before buying, especially given the current market uncertainty. Cramer suggests that it’s better not to rush into a purchase at this time.
“When I see this, I think of digital banking, which I like. But despite being modestly profitable, the stock’s been rewarded with a 72% increase. I’d rather wait for this stock to cool off. We have an uncertain market, so let’s not jump to the conclusion that we need to buy it right now.”
Nu Holdings Ltd. (NYSE:NU) is a strong investment opportunity due to its impressive growth and market position in Latin America’s digital financial sector. Nu Holdings Ltd. (NYSE:NU) has amassed over 85 million users by Q2 2024, demonstrating its success in reaching a market that is often underserved by traditional banks. In its Q2 2024 earnings report, Nu Holdings Ltd. (NYSE:NU) reported an EPS of $0.12, surpassing analyst expectations, although its revenue slightly missed forecasts at $2.85 billion.
Despite this minor shortfall, Nu Holdings Ltd. (NYSE:NU)’s revenue grew by 52% year-over-year, indicating robust growth driven by its operational efficiency and improved profit margins. Nu Holdings Ltd. (NYSE:NU)’s expansion into credit and insurance services diversifies its revenue streams and aligns with the increasing demand for fintech solutions in the region. Analysts predict that EPS will rise to $0.40 in 2024 and $0.62 in 2025, suggesting that Nu Holdings Ltd. (NYSE:NU) is on track for continued growth and long-term success.
Baron FinTech Fund stated the following regarding Nu Holdings Ltd. (NYSE:NU) in its first quarter 2024 investor letter:
“Nu Holdings Ltd. (NYSE:NU) is a digital bank with operations in Brazil, Mexico, and Colombia. Shares appreciated during the quarter after the company reported strong balance sheet growth and improving margins. New product launches and expansion in newer countries are yielding favorable results. Nu also benefited from inclusion in the MSCI Brazil Index, which prompted buying from passively managed funds. We continue to own the stock because Nu is disrupting the financial services industry in Latin America with its digital distribution and intense focus on user experience. The company has grown to serve over 90 million customers in less than 10 years, largely through word-of-mouth referrals. We believe the company’s superior product offering will drive continued share gains in large and growing markets.”
2. Vistra Corp. (NYSE:VST)
Number of Hedge Fund Investors: 92
Jim Cramer points out that Vistra Corp. (NYSE:VST) has emerged as an unexpected growth utility, with its stock rising sharply due to its nuclear energy investments and the increasing electricity demand. He compares Vistra Corp. (NYSE:VST) to CeeDee Lamb of the stock market, noting that both are based in Dallas—Lamb plays for the Cowboys, a team Cramer nearly drafted. Cramer also highlights that Vistra Corp. (NYSE:VST) is one of the few companies challenging NVIDIA Corporation (NASDAQ:NVDA) in terms of performance.
“Vistra Energy came out of nowhere as a growth utility, with its stock soaring thanks to the company’s nuclear exposure and the realization that we desperately need more electricity in this country. I call Vistra the “CeeDee Lamb” of the stock market. Vistra is based in Dallas, just like Lamb, who plays for the Cowboys—whom I almost drafted. Vistra is also one of the few stocks giving Nvidia a run for its money.”
Vistra Corp. (NYSE:VST) is a compelling investment choice based on its strong Q2 2024 results and positive growth outlook. Vistra Corp. (NYSE:VST) reported an EPS of $1.43, surpassing the expected $1.38, and generated $3.85 billion in revenue, which exceeded forecasts by nearly 14%. This revenue growth shows the strength of Vistra Corp. (NYSE:VST)’s diverse operations across the U.S. power markets.
Despite economic challenges, Vistra Corp. (NYSE:VST) has maintained profitability with a solid return on equity of 21.05%, reflecting good capital management. Analysts are optimistic about Vistra Corp. (NYSE:VST)’s future, with “Buy” ratings from Morgan Stanley and UBS, and price targets above $100 per share. This confidence is supported by Vistra Corp. (NYSE:VST)’s strategic investments in renewable energy, positioning it well for long-term growth as the world moves towards cleaner energy.
Legacy Ridge Capital stated the following regarding Vistra Corp. (NYSE:VST) in its Q2 2024 investor letter:
“One of the sectors we know well which had been out of favor for several years has quickly come into favor: Independent Power Producers (IPPs). We’ve written consistently about NRG and Vistra Corp. (NYSE:VST) since the 2019 letter, have owned each, or both, since 2018, and invested a meaningful amount of our assets in VST specifically the past few years. Nate and I intend on spending more time in the year-end letter on our updated views on the IPPs and our learnings from the on-going investment, but we were a bit surprised how quickly the narrative around these companies changed. Our Blue Sky 2030 estimates of intrinsic value converged with the share price 6-years before we thought probable. In the 2019 letter, with respect to VST, we wrote:
“Over the next decade management should have close to $15 Billion to deploy to share repurchases. If you assume they have to pay an average price for the stock that’s higher than the current one, and they can only repurchase 60% of shares outstanding instead of the 100% the math implies, FCF per share in 2030 would be $14. That’s a $70 stock at today’s valuation, but a $140 stock at a more reasonable FCF yield of 10%.” And… “The IPPs are un-investable for most money managers, so there we are. When they become investable we’ll probably be long gone.”
We’re not exactly long gone, but sentiment has certainly surpassed investable. After 5+ years of VST trading between $17 – $26 a share—and $26 exactly a year ago—it hit a high of $107 in May on the heels of the Artificial Intelligence (AI) narrative and the implications for electricity demand. While we agree with the prevailing consensus view that more Data Centers will be built, Data Centers require base load energy, and that the US will probably be short base load energy, predicting the rate of any technological advancement is not our area of expertise, and we feel the margin of safety has dissipated. Therefore, what had been our largest position entering 2023 and 2024, and has been our greatest contributor to performance, is now one of the smaller positions in the fund.”
1. Berkshire Hathaway Inc. (NYSE:BRK-B)
Number of Hedge Fund Investors: 120
Jim Cramer advises that there’s never a bad time to buy Berkshire Hathaway Inc. (NYSE:BRK-B). He suggests purchasing some shares now and then waiting for the stock price to drop before buying more. Cramer believes Berkshire Hathaway Inc. (NYSE:BRK-B) is an excellent investment and recommends taking advantage of any opportunity to add to one’s portfolio.
“When is it a bad time to buy Berkshire? Buy some tomorrow. I think it’s terrific. Then, wait until it comes down and buy some more.”
Berkshire Hathaway Inc. (NYSE:BRK-B) stands out as a strong investment due to its diverse portfolio, excellent financial performance, and dependable leadership under Warren Buffett. Berkshire Hathaway Inc. (NYSE:BRK-B), which includes major businesses like GEICO, BNSF Railways, and significant stakes in giants such as Apple Inc. (NASDAQ:AAPL), has shown impressive results.
In Q2 2024, Berkshire earned $35.9 billion, up from $28.9 billion the previous year, and its operating income grew by 6.6%, thanks to improvements in insurance and energy sectors. Berkshire Hathaway Inc. (NYSE:BRK-B) ’s cash reserves have increased to nearly $150 billion, giving it the flexibility to invest or acquire new assets. Recent moves, such as boosting its stake in Occidental Petroleum and reducing its position in Bank of America Corporation (NYSE:BAC), reflect Berkshire Hathaway Inc. (NYSE:BRK-B)’s strategic approach and confidence in the energy sector. With its strong financial health, broad range of businesses, and Buffett’s steady leadership, Berkshire Hathaway Inc. (NYSE:BRK-B) is well-positioned for ongoing growth and stability, making it a solid investment choice.
While we acknowledge the potential of Berkshire Hathaway Inc. (NYSE:BRK-B), our conviction lies in the belief that under the radar AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than the ones on our list but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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