5 Safe Stocks to Buy According to Hedge Funds

2. Berkshire Hathaway Inc. (NYSE:BRK-A)

Beta Value: 0.90
Number of Hedge Fund Holders: 104

Berkshire Hathaway Inc. (NYSE:BRK.A) is a conglomerate that controls around 60 subsidiary firms, including auto insurance colossus GEICO, rail transport company BNSF, and battery manufacturer Duracell.

Due to its diversification and lower overall risk profile, Berkshire Hathaway Inc. (NYSE:BRK.A) has one of the superior risk-adjusted return profiles. Additionally, Berkshire has a sizable stock portfolio that includes substantial holdings in well-established companies like Apple (NASDAQ:AAPL), Bank of America (NYSE:BAC), Coca-Cola (NYSE:KO), and many others. As a result, Warren Buffett’s firm makes a fantastic candidate for downside security.

At the end of Q3 2022, 104 hedge funds owned a stake in Berkshire Hathaway Inc. (NYSE:BRK.A), down from 109 in the preceding quarter. Michael Larson’s Bill & Melinda Gates Foundation Trust held a significant stake in Berkshire Hathaway Inc. (NYSE:BRK.A)) at the end of the third quarter of 2022, worth $7.93 billion.

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.”