1. Berkshire Hathaway (NYSE:BRK-B)
Number of Hedge Fund Investors in Q2 2024: 120
Berkshire Hathaway (NYSE:BRK-B) is a multinational conglomerate holding company led by Warren Buffett. The company owns and invests in a wide array of industries, including insurance, utilities, railroads, and manufacturing. BHE Renewables, a subsidiary of Berkshire Hathaway Energy owns solar, wind, geothermal, and hydroelectric projects that produce electricity for the wholesale market and customers under long-term agreements.
BHE Renewables produces geothermal energy and operates 10 facilities in California’s Imperial Valley which produces 345 megawatts of electricity. The company’s geothermal brines contain relatively high concentrations of lithium which presents a lucrative opportunity for revenue generation. By extracting lithium from these brines, the company can tap into the growing demand for battery-grade lithium, providing a significant additional revenue stream alongside its core operations.
On June 4, BHE Renewable announced a joint venture with Occidental (NYSE:OXY) to deploy its TerraLithium’s Direct Lithium Extraction (DLE) technology to extract and commercially produce high-purity lithium compounds from geothermal brines in California’s Imperial Valley. The successful extraction of lithium from these geothermal plants is projected to yield around 90,000 metric tons of lithium carbonate equivalents annually, enough to power approximately 11 million electric vehicle batteries each year. This production capability will provide a significant revenue opportunity and position the company as a key player in the growing lithium supply chain.
Analysts expect Berkshire Hathaway (NYSE:BRK-B) to increase its earnings by almost 15% this year and have a consensus Buy rating on the stock, with an average price target of $715,333 which indicates a potential 6.28% upside from current levels. As of the second quarter, Berkshire Hathaway (NYSE:BRK-B) stock is held by 120 hedge funds, with a total stake valued at $18.21 billion. Bill & Melinda Gates Foundation Trust is the largest shareholder in the company and owns shares worth $10.01 billion as of June 30.
While we acknowledge the potential of Berkshire Hathaway (NYSE:BRK-B) to grow, our conviction lies in the belief that 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-B but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: $30 Trillion Opportunity: 15 Best Humanoid Robot Stocks to Buy According to Morgan Stanley and Jim Cramer Says NVIDIA ‘Has Become A Wasteland’.
Disclosure. None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and investors. Please subscribe to our daily free newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
