1. Berkshire Hathaway (NYSE:BRK-B)
Number of Hedge Fund Investors: 120
Jim Cramer describes Berkshire Hathaway (NYSE:BRK-B) as a consistently strong investment, referring to it as an “up stock.” He highlights that this reputation has been in place since Leon Cooperman first introduced him to Berkshire Hathaway (NYSE:BRK-B) in 1983 and 1984, and it continues to hold true in the present day.
“Berkshire Hathaway is what I call an up stock. It’s been that way since Leon Cooperman first told me about it in 1983 and ’84, and it remains an up stock even today.”
Berkshire Hathaway (NYSE:BRK-B) excels with its broad and diverse portfolio, guided by Warren Buffett and Charlie Munger’s (now deceased) exceptional management. Berkshire Hathaway (NYSE:BRK-B)’s extensive holdings in sectors like insurance, energy, railroads, manufacturing, and consumer goods provide stability and steady cash flow, even during economic downturns. Buffett’s strategic value investing and smart capital allocation have consistently delivered high returns. With over $147 billion in cash reserves as of Q2 2024, Berkshire Hathaway (NYSE:BRK-B) is in a strong position to seize investment opportunities or buy back shares, enhancing its long-term growth prospects.
In Q2 2024, Berkshire Hathaway (NYSE:BRK-B) showcased robust financial performance, reporting operating earnings of $10.04 billion, up 7% from the previous year, largely due to its insurance and energy sectors. Berkshire Hathaway (NYSE:BRK-B)’s net earnings of $35.9 billion, driven by gains from major equity stakes in Apple Inc. (NASDAQ:AAPL), The Coca-Cola Company (NYSE:KO), and American Express Company (NYSE:AXP), highlight its resilient business model and strong cash flow. Its equity portfolio, worth over $350 billion, includes investments in profitable companies and recent forays into energy infrastructure and renewable projects, positioning it well to benefit from the global move toward cleaner energy.
Berkshire Hathaway (NYSE:BRK-B)’s focus on shareholder value is clear from its $8 billion share buybacks in the first half of 2024, demonstrating confidence in its intrinsic value. Recent strategic actions, such as boosting its stake in Occidental Petroleum Corporation (NYSE:OXY) and expanding into renewable energy, align with its goal to leverage opportunities in the energy sector and lead in sustainable energy. These developments reinforce a positive outlook for Berkshire Hathaway (NYSE:BRK-B)’s continued growth and value creation.
While we acknowledge the potential of Berkshire Hathaway (NYSE:BRK-B), our conviction lies in the belief that under the radar 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 the ones on our list but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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