1. Berkshire Hathaway Inc. (NYSE:BRK.A)
Number of Hedge Fund Holders: 120
A holding firm, Berkshire Hathaway Inc. (NYSE:BRK.A) has numerous subsidiaries involved in various business ventures. The company’s primary business is insurance, which is mostly handled by Geico, Berkshire Hathaway Primary Group, and Berkshire Hathaway Reinsurance Group. To acquire Burlington Northern Santa Fe (railroad), Berkshire Hathaway Energy (utilities and energy distributors), and the businesses that comprise its manufacturing, service, and retailing operations (including five of Berkshire’s largest noninsurance pretax earnings generators: Precision Castparts, Lubrizol, Clayton Homes, Marmon, and IMC/ISCAR), the firm has utilized the excess cash thrown off from these and other operations over the years. The conglomerate is distinct in that it operates entirely decentralized.
Along with significant ownership positions in businesses like Apple and Coca-Cola, its subsidiaries include well-known brands including GEICO, BNSF Railway, See’s Candy, and Dairy Queen.
Not every company thrives through expansion. Businesses can benefit their shareholders in various ways. The Best Chocolate Stock, Berkshire Hathaway Inc. (NYSE:BRK.A)’s See’s Candies, which includes chocolates, is a good example. Its customer base has only grown glacially, but it has been a very profitable investment.
See’s Candies has increased its profits more aggressively since 2007 by boosting prices by an average of 5.5% annually, even though inflation has been averaging 2.5%. The company’s core narrative has remained consistent for over fifty years. See’s makes additional revenue from its current clientele each year while losing a ton of extra cash.
A key factor in Berkshire Hathaway Inc. (NYSE:BRK.A)’s success has been Buffett’s unmatched ability to spot cheap assets and encourage their expansion. The company beat the broader market in 2024, which is indicative of Buffett’s approach to buy and hold companies and stocks that increase in value over time. Berkshire’s fully owned companies produce substantial cash flows in addition to its equity holdings, establishing a self-sustaining cycle of expansion and reinvestment. The insurance segment, a critical driver, not only provides steady revenue but also delivers “float”—capital that can be invested to compound returns further. The value of diversity is shown by the various companies, which range from energy utilities to confectioneries, and provide a significant contribution to the conglomerate’s revenue stream.
Donald Yacktman’s Yacktman Asset Management was the largest stakeholder in the company among the funds in Insider Monkey’s database at the end of Q3 2024. It owns 471,805 shares worth $213.86 million as of Q3.
Overall, BRK.A ranks first on our list of the 12 Best Chocolate Stocks to Buy According to Hedge Funds. While we acknowledge the potential for BRK.A to grow, our conviction lies in the belief that some 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 BRK.A but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. 12 Best Chocolate Stocks to Buy According to Hedge Funds is originally published on Insider Monkey. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
