9 Stocks Warren Buffett Has Bought Since Beginning of AI Revolution

6. Atlanta Braves Holdings, Inc. (NASDAQ:BATRA)

Number of Hedge Fund Holders: 36

Berkshire Hathaway’s Shares in Q1 2024: 223,645

Atlanta Braves Holdings, Inc. (NASDAQ:BATRA) owns and operates the Atlanta Braves Major league baseball club. The firm split off from Liberty Media recently. Even though sports teams are notorious for being overvalued, this stock more than justifies its price. This is because it is one of the few sporting teams in the world that is both profitable and has significant real estate investment, mostly around the stadium in which it plays its games. The future for it also looks bright as it has a young team, with most of the players under long-term contracts. It is also home to one of the largest and fastest-growing markets in the US.

There is also an argument for Atlanta Braves Holdings, Inc. (NASDAQ:BATRA) stock being undervalued. Sports teams trade at revenue multiples, prime examples being Manchester United and Madison Square Garden Corp. If the 6x revenue multiple was applied to Atlanta, like it is to other teams, it would add nearly $1 billion to the present valuation of the stock.

In its Q4 2023 investor letter, Ave Maria, an asset management firm, highlighted a few stocks and Atlanta Braves Holdings, Inc. (NASDAQ:BATRA) was one of them. Here is what the fund said:

“Atlanta Braves Holdings, Inc. (NASDAQ:BATRA) owns the Atlanta Braves professional baseball team as well as the real estate development surrounding the team’s Truist Park stadium. Sports franchises are trophy assets whose growing asset values have produced fantastic long-term returns. As a premier team with one of the largest fan bases, we believe the private market value of The Braves and the associated real estate development far exceed the current market price of the stock.”