Is Berkshire Hathaway Inc. (BRK.B) Trading at a Major Discount?

As industrywide interest jumped, key hedge funds were breaking ground themselves. Giverny Capital, managed by Francois Rochon, established the most outsized position in Berkshire Hathaway Inc. (NYSE:BRK.B). Giverny Capital had $79.9 million invested in the company at the end of the quarter. Norbest Lou’s Punch Card Capital also initiated a $73.8 million position during the quarter. The other funds with brand new BRK-B positions are Ric Dillon’s Diamond Hill Capital, John D. Gillespie’s Prospector Partners, and Joshua Friedman and Mitchell Julis’ Canyon Capital Advisors.

Let’s now take a look at hedge fund activity in other stocks similar to Berkshire Hathaway Inc. (NYSE:BRK.B). These stocks are Exxon Mobil Corporation (NYSE:XOM), Amazon.com, Inc. (NASDAQ:AMZN), General Electric Company (NYSE:GE), and Facebook Inc (NASDAQ:FB). All of these stocks’ market caps match BRK-B’s market cap.

As you can see these stocks had an average of 102 hedge funds with bullish positions and the average amount invested in these stocks was $9.23 billion. That figure was $19.34 billion in BRK-B’s case. Facebook Inc (NASDAQ:FB) is the most popular stock in this table. On the other hand General Electric Company (NYSE:GE) is the least popular one with only 54 bullish hedge fund positions. Berkshire Hathaway Inc. (NYSE:BRK.B) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard FB or AMZN might be better candidates to consider a long position in.

Disclosure: None