Is This the Best Time to Add Berkshire Hathaway (BRK-B) to Your Portfolio?

Diamond Hill Capital, an investment management company, released its “Select Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. Markets continued their YTD rally in the third quarter, with the Russell 3000 Index surging 8%. At the same time, the portfolio underperformed the Russell 3000 Index, returning 4.98%. To get an idea of the fund’s best choices for 2025, check out its top 5 positions.

In its third-quarter 2025 investor letter, Diamond Hill Select Fund highlighted stocks such as Berkshire Hathaway Inc. (NYSE:BRK-B). Berkshire Hathaway Inc. (NYSE:BRK-B) engages in the insurance, freight rail transportation, and utility businesses. The one-month return of Berkshire Hathaway Inc. (NYSE:BRK-B) was -3.51%, and its shares gained 6.12% of their value over the last 52 weeks. On October 30, 2025, Berkshire Hathaway Inc. (NYSE:BRK-B) stock closed at $478.52 per share, with a market capitalization of $1.03 trillion.

Diamond Hill Select Fund stated the following regarding Berkshire Hathaway Inc. (NYSE:BRK-B) in its third quarter 2025 investor letter:

"Though markets have continued rising throughout the year, we have continued finding individual companies whose prices we believe are not reflective of their long-term growth outlooks. Accordingly, we initiated four new positions in Q3, including Colgate-Palmolive, Berkshire Hathaway Inc. (NYSE:BRK-B), Zoetis and Adobe.

Diversified holding company Berkshire Hathaway has generated strong results across its portfolio of operating subsidiaries. It has built a significant cash position that provides stability and positive optionality in the event high valuations for both public and private companies return to more normal levels and allow it an opportunity to acquire new businesses. We capitalized on Warren Buffett’s announced retirement at the end of 2025, which pressured shares, to add the position to the portfolio."

Berkshire Hathaway Inc. (NYSE:BRK-B) is in 15th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 133 hedge fund portfolios held Berkshire Hathaway Inc. (NYSE:BRK-B) at the end of the second quarter which was 125 in the previous quarter. While we acknowledge the potential of Berkshire Hathaway Inc. (NYSE:BRK-B) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Berkshire Hathaway Inc. (NYSE:BRK-B) and shared the list of stocks Jim Cramer discussed. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.