Here's What Makes Graham Holdings Co. (GHC) a Good Investment?

The London Company, an investment management company, released “The London Company Small Cap Strategy” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. US equities continued their rally in the third quarter, driven by the Fed rate cut, solid corporate earnings, and enthusiasm around AI. The small-cap portfolio appreciated 1.9% (2.4% net) in the third quarter, compared to the Russell 2000 Index’s 12.4% gain. Please review the fund’s top 5 holdings to gain insight into their key selections for 2025.

In its third-quarter 2025 investor letter, The London Company Small Cap Strategy highlighted stocks such as Graham Holdings Company (NYSE:GHC). Graham Holdings Company (NYSE:GHC) is a diversified holding company. The one-month return of Graham Holdings Company (NYSE:GHC) was -5.47%, and its shares gained 20.50% of their value over the last 52 weeks. On November 3, 2025, Graham Holdings Company (NYSE:GHC) stock closed at $1,036.52 per share, with a market capitalization of $4.522 billion.

The London Company Small Cap Strategy stated the following regarding Graham Holdings Company (NYSE:GHC) in its third quarter 2025 investor letter:

"Graham Holdings Company (NYSE:GHC) – GHC outperformed the benchmark on strong 2Q results, led by solid growth in Kaplan Education and the continued expansion of its Healthcare segment. The stock likely benefited from the perceived easing of broadcast TV M&A regulation, which could enable future station monetization or local consolidation. We remain positive on the GHC family's fiduciary leadership, strong balance sheet, and track record of returning capital to shareholders."

Graham Holdings Company (NYSE:GHC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 20 hedge fund portfolios held Graham Holdings Company (NYSE:GHC) at the end of the second quarter, the same as in the previous quarter.  While we acknowledge the potential of Graham Holdings Company (NYSE:GHC) 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 Graham Holdings Company (NYSE:GHC) and shared Longleaf Partners Small-Cap Fund's views on the company in the previous quarter. 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.