5 Best Diversified Stocks to Buy Now

4. Berkshire Hathaway Inc. (NYSE:BRK-B)

Number of Hedge Fund Holders: 110

Berkshire Hathaway Inc. (NYSE:BRK-B) is a multinational multi-industry holding company. It is one of the most diversified companies in the world with operations in insurance, energy and utilities, transportation, chemicals, batteries, construction, retail, and real estate, along with many others. As of February 2023, Berkshire Hathaway Inc. (NYSE:BRK-B) owns 65 discrete companies with over 260 subsidiaries.

Berkshire Hathaway Inc. (NYSE:BRK-B) has posted significant shareholder returns through buybacks in the last few years. Between 2020 and 2022, the firm made nearly $60 billion worth of share repurchases. In the first two months of 2023, Berkshire Hathaway Inc. (NYSE:BRK-B) repurchased $1.9 billion worth of company stock and plans to repurchase $3 billion worth of shares in total by the end of the first quarter.

Here is what Black Bear Value Fund has to say about Berkshire Hathaway Inc. (NYSE:BRK-A) in its Q3 2022 investor letter:

“Going forward I expect Berkshire to compound at above average returns from this price. BRK is a collection of high-quality businesses, excellent management, and a good amount of optionality in their cash position. If the cash were to be deployed accretively, the true value would be greater than an 8% premium (as mentioned above). The combination of a pie that is growing, an increasing share of said pie due to stock buybacks, upside optionality from cash and a tight range of likely business outcomes that span a variety of economic futures gives me comfort in continuing to own Berkshire.”