What Makes Berkshire Hathaway (BRK-B) a Better Investment?

The London Company, an investment management company, released “The London Company Large Cap Strategy” first quarter 2025 investor letter. A copy of the letter can be downloaded here. The US equities experienced a correction in the first quarter following two years of robust performance. The portfolio returned 2.4% (2.3%, net) during the quarter compared to a 4.5% increase for the Russell 1000 Index. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its first-quarter 2025 investor letter, The London Company Large Cap Strategy 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 -3.08%, and its shares gained 24.78% of their value over the last 52 weeks. On May 13, 2025, Berkshire Hathaway Inc. (NYSE:BRK-B) stock closed at $511.88 per share with a market capitalization of $1.104 trillion.

The London Company Large Cap Strategy stated the following regarding Berkshire Hathaway Inc. (NYSE:BRK-B) in its Q1 2025 investor letter:

"Berkshire Hathaway Inc. (NYSE:BRK-B) - BRK.B stock outperformed in the quarter, which we believe is attributable to a broader flight to safety amidst the turbulence and uncertainty of executive actions from President Trump. We like the company for its diversified operations, conservative underwriting, strong balance sheet, and prudent management team.

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.