Diamond Hill Capital Stock Portfolio: Top 10 Stock Picks

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

Diamond Hill Capital’s Stake Value: $710.93 million

Number of Hedge Fund Holders: 131

Wall Street analysts Meyer Shields of KBW and Brian Meredith of UBS have increased their price targets on Berkshire Hathaway Inc. (NYSE:BRK-A)’s stock after it delivered strong Q4 2024 results. Meredith reiterated a “Buy” rating, increasing the price target to $836,135 from $803,444, while Shields boosted the target price to $775,000 from $750,000, maintaining a “Market Perform” rating. Berkshire Hathaway Inc. (NYSE:BRK-A) stated that its operating profit -encompassing earnings from its wholly owned businesses — increased to $14.5 billion during Q4 2024. That was aided by a strong increase in insurance underwriting.

While Berkshire Hathaway Inc. (NYSE:BRK-A)’s financial results were healthy, it was the company’s strong cash pile of $334.2 billion that turned heads on Wall Street. However, in the annual letter, Mr. Buffett said that he is struggling to find investments. The legendary investor comforted its shareholders by saying that Berkshire Hathaway Inc. (NYSE:BRK-A) will forever deploy a substantial majority of money in equities. That being said, a small but important exception to its U.S.-based focus is the growing investment in Japan. Morningstar believes that the company’s strong balance sheet and liquidity are some of its competitive advantages. Its insurance operations remain well overcapitalized, possessing increased levels of equity, fixed income, and cash relative to its reserves.