Berkshire Hathaway (BRK-B): Low Beta Stock in a Volatile Market

Weitz Investment Management, an investment management firm, released its “Multi-Cap Equity Fund” first-quarter 2025 investor letter. A copy of the letter can be downloaded here.  The fund’s Institutional Class returned +0.81% in the first quarter compared to -4.72% for the Russell 3000. In late January, the “AI Trade” faced a challenge when the Chinese company DeepSeek revealed that it had created an advanced AI model significantly lower cost than its U.S. counterparts. This announcement resulted in increased scrutiny from investors regarding the spending strategies of US firms. Investors' and corporate leaders' confidence is challenged by uncertainties related to trade and tariffs, which causes equities to decline as the quarter draws to a close. In addition, you can check the fund’s top 5 holdings to find out its best picks for 2025.

In its first-quarter 2025 investor letter, Weitz Multi-Cap Equity 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 -5.18%, and its shares gained 23.58% of their value over the last 52 weeks. On May 23, 2025, Berkshire Hathaway Inc. (NYSE:BRK-B) stock closed at $503.46 per share with a market capitalization of $1.086 trillion.

Weitz Multi-Cap Equity Fund stated the following regarding Berkshire Hathaway Inc. (NYSE:BRK-B) in its Q1 2025 investor letter:

"Berkshire Hathaway Inc. (NYSE:BRK-B), the Fund’s largest holding, often benefits in volatile markets. Berkshire’s operations include a wide swath of American and global businesses that are surely impacted by changes in trade policy. However, Berkshire’s “fortress” balance sheet (including over $300 billion of cash) and strong record of capital allocation suggest the company is poised to benefit from broader market turbulence."

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, 125 hedge fund portfolios held Berkshire Hathaway Inc. (NYSE:BRK-B) at the end of the first quarter which was 131 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 undervalued AI stock set for massive gains.

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.