Vltava Fund, an investment management firm, published its third-quarter 2022 investor letter – a copy of which can be downloaded here. In its Q3 2022 investor letter, the fund mentioned that investors may have different expectations concerning inflation, interest rates, or economic growth, but, at the end of the day, what we buy will determine the portfolio’s return (and its risk). The fund also said that the need for capital investment over the long term has been, and will likely remain, higher than it anticipated. Try to spare some time to check the fund’s top 5 holdings for you to have an idea about their best stock picks this 2022.
In its Q3 2022 investor letter, Vltava Fund mentioned Berkshire Hathaway Inc. (NYSE:BRK-A) and explained its insights for the company. Founded in 1839, Berkshire Hathaway Inc. (NYSE:BRK-A) is an Omaha, Nebraska-based multinational conglomerate company with a $589.2 billion market capitalization. Berkshire Hathaway Inc. (NYSE:BRK-A) delivered a -10.58% return since the beginning of the year, while its 12-month returns are down by -4.73%. The stock closed at $403,000.00 per share on October 10, 2022.
Here is what Vltava Fund has to say about Berkshire Hathaway Inc. (NYSE:BRK-A) in its Q3 2022 investor letter:
“Berkshire Hathaway is our oldest position. We have held it for almost 11 years, and it has been our largest position for most of that time. We have told you so much about Berkshire through the years that it is difficult not to repeat ourselves.
BRK is our core investment, and I would describe our view on the company this way: If I had to invest all my money in a single stock and could not touch it at all for 5–10 years, then I would choose BRK without any hesitation. It is a conglomerate consisting of individual investments the quality of which is well above average, with efficiency in capital allocation that is far above average, having an extraordinarily strong balance sheet, and with very low business risk.
All this comes at a valuation that is significantly below the market average. BRK’s earnings power, the determination of which requires a thorough understanding of its business and a good bit of manual labour, is somewhere just north of USD 50 billion a year. Therefore, the entire company, with its market capitalisation of USD 590 billion, trades at less than 12 times annual earnings. It is very realistic to expect BRK’s stock price to grow at an average rate of about 10% per year over the long term…” (Click here to see the full text)
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Our calculations show that Berkshire Hathaway Inc. (NYSE:BRK-A) ranks 11th on our list of the 30 Most Popular Stocks Among Hedge Funds. Berkshire Hathaway Inc. (NYSE:BRK-A) was in 109 hedge fund portfolios at the end of the second quarter of 2022, compared to 104 funds in the previous quarter. Berkshire Hathaway Inc. (NYSE:BRK-A) delivered a -3.57% return in the past 3 months. We also shared another hedge fund’s views on Berkshire Hathaway Inc. (NYSE:BRK-A) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q3 page.
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Disclosure: None. This article is originally published at Insider Monkey.
