5 Undervalued Blue Chip Stocks Hedge Funds Are Piling Into

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

Number of Hedge Fund Holders: 111  

Forward PE Ratio: 25.03

Berkshire Hathaway Inc. (NYSE: BRK-A) is a Nebraska-based holding company founded in 1839. It is ranked first on our list of 10 undervalued blue chip stocks hedge funds are piling into. The stock has returned 58% to investors in the past year. The company is led by legendary investor Warren Buffett and has stakes in several large corporations. It is one of the largest firms in the world in terms of market capitalization, and one of the two non-tech stocks in the top 8 companies on the S&P 500 Index. 

On June 8, The Wall Street Journal reported that Berkshire Hathaway Inc. (NYSE: BRK-A) was acquiring a stake in Nu Pagamentos SA, a Brazilian digital banking firm.  The investment is reported to be worth $500 million and represents one of the first forays of Berkshire Hathaway into the world of fintech. 

At the end of the first quarter of 2021, 111 hedge funds in the database of Insider Monkey held stakes worth $19 billion in Berkshire Hathaway Inc. (NYSE: BRK-A), up from 110 in the preceding quarter worth $20 billion.

In its Q1 2021 investor letter, Vltava Fund, an asset management firm, highlighted a few stocks and Berkshire Hathaway Inc. (NYSE: BRK-A) was one of them. Here is what the fund said:

“Despite the considerable rise in stock markets over the past year, there are still many attractive opportunities. Human nature also is playing a bit into our hands. Investor crowds often chase popular stocks, hot IPOs, or mysterious SPACs and completely leave aside stocks they consider boring and not sexy enough. A typical example of this category is our long-term largest position in Berkshire Hathaway. Since we bought it for the first time, its price has nearly quadrupled and yet it remains just as undervalued today as it was at that time. Considering the current rate at which it is buying back its own shares and the amount of cash that Berkshire Hathaway has, my greatest wish as a shareholder is for the company’s share price to remain as low as possible for as long as possible.”

You can also take a peek at Billionaire Stan Druckenmiller’s Top 10 Stock Picks and Billionaire Julian Robertson On Interest Rates and His Top Stock Picks For 2021.

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