Here's Why Berkshire Hathaway (BRK-B) Surged in Q1

Diamond Hill Capital, an investment management company, released its “Large Cap Fund” first-quarter 2025 investor letter. A copy of the letter can be downloaded here. Markets exhibited a mixed performance in Q1 as the new presidential administration generated significant buzz with a flurry of actions, leaving investors uncertain about the future direction. The portfolio trailed the Russell 1000 Value Index benchmark in Q1. The strategy returned 1.36% (net) vs 2.14% returns for the index. To get an idea of the fund’s best choices for 2025, check out its top 5 positions.

In its first-quarter 2025 investor letter, Diamond Hill Large Cap Fund highlighted stocks such as Berkshire Hathaway Inc. (NYSE:BRK-B). Berkshire Hathaway Inc. (NYSE:BRK-B) engages in insurance, freight rail transportation, and utility businesses. The one-month return of Berkshire Hathaway Inc. (NYSE:BRK-B) was -1.98%, and its shares gained 24.68% of their value over the last 52 weeks. On May 9, 2025, Berkshire Hathaway Inc. (NYSE:BRK-B) stock closed at $531.64 per share with a market capitalization of $1.147 trillion.

Diamond Hill Large Cap Fund stated the following regarding Berkshire Hathaway Inc. (NYSE:BRK-B) in its Q1 2025 investor letter:

"Other top Q1 contributors included Berkshire Hathaway Inc. (NYSE:BRK-B), Waste Management and HCA Healthcare. Diversified holding company Berkshire Hathaway has benefited from improved performance at GEICO, which is generating better underwriting results, policy growth and a lower expense ratio than peers. The company’s substantial excess capital provides ample opportunities for further investments and capital allocation looking forward."

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, 131 hedge fund portfolios held Berkshire Hathaway Inc. (NYSE:BRK-B) at the end of the fourth quarter which was 120 in the previous quarter. While we acknowledge the potential of Berkshire Hathaway Inc. (NYSE:BRK-B) as an investment, our conviction lies in the belief that 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 as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

In another article, we covered Berkshire Hathaway Inc. (NYSE:BRK-B) and shared the list of stocks Jim Cramer recently discussed. In addition, please check out our hedge fund investor letters Q1 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.