Homeowner’s Insurance Rates Skyrocketing: 10 Best Stocks To Buy

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

Number of Hedge Fund Investors  in Q1 2024: 119

Berkshire Hathaway Inc. (NYSE:BRK-B) is the multi billion dollar investment firm owned by Warren Buffett. It earned $24.6 billion in insurance revenue during Q1 2024.  Berkshire Hathaway Inc. (NYSE:BRK-B) operates in homeowner insurance primarily through its GEICO business. GEICO is the firm’s biggest insurance business, and Buffett bought it in 1996. It has been in the business for 86 years, and due to its parent Berkshire Hathaway Inc. (NYSE:BRK-B), GEICO benefits from more than $200 billion of cash and short term investments that can help it during the time of crisis. Since Buffett also invests through Berkshire Hathaway Inc. (NYSE:BRK-B), his insurance companies benefit from a unique business model that generates a substantial amount of cash and provides financial backing. Its homeowners insurance business depends on part on the larger auto insurance business since GEICO focuses on offering homeowner policies to its existing auto insurance customers.

Vitava Fund mentioned Berkshire Hathaway Inc. (NYSE:BRK-B) in its Q4 2023 investor letter. Here is what the firm said:

“Berkshire Hathaway continues to be a very unique type of conglomerate whose investments generate huge amounts of cash and which can successfully reinvest that cash again and again over the long term. It is an almost perfect case of a snowball in the markets. Here is one interesting fact: we estimate that the intrinsic value of a single Berkshire share is currently growing at a rate of about $178 per day. When we bought the shares 12 years ago, this was less than $50 a day. The rate of growth is accelerating gradually and with minimal fluctuations. Moreover, Berkshire has additional decades of similar growth still ahead of it.”

BRK-B is the unsurprising top hedge fund insurance stock pick. But our conviction lies in the belief that some 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.

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Disclosure: None.