In this article, we discuss the 10 Best Stocks To Buy According To Billionaire Seth Klarman.
Billionaire investor and Baupost Group’s CEO, Seth Klarman, has been a proponent of value investing since 1991. In recent interviews, he mentioned starting his career by following the exact principles taught by Ben Graham and later Warren Buffett. While his approach has evolved through years of personal investing, he still stands by the concept of the margin of safety. This suggests that a big discount in value investing offers a margin of safety that protects investors even if their assumptions miss the mark. The value of Baupost’s 13F holdings is approximately $4.8 billion as of September 30, 2025.
Klarman primarily follows a bottom-up investing approach and believes bargains can be found even in expensive markets. He also believes that diversifying across asset classes, industries, and countries is key to creating a balanced portfolio that withstands market volatility. In his view, value investing is one of the safest ways to protect wealth and avoid a ‘blow up’. He points to Warren Buffett’s illustrious career, noting that he never endured a prolonged period of underperformance because he preserved capital and was patient with the markets.
Klarman’s views on disciplined investing are fundamental today, as markets remain dynamic. According to Goldman Sachs Asset Management’s 2026 investment outlook, artificial intelligence, central bank decisions, global trade, fiscal policy, and geopolitical risks are expected to keep the investment landscape complex yet dynamic. Proactive decision-making and diversified investment portfolios thus become very important. In the report, they highlighted that the global geopolitical and economic landscape is increasingly becoming multipolar, which, in their view, provides incremental opportunities. On the outlook for US equities, the report further stated:
“Substantial investment by well-resourced entities positions them to capitalize on transformative technologies and market dynamics. Our focus remains on companies exhibiting high gross margins, fortress balance sheets, and durable end markets. While some smaller counterparts may struggle for a competitive footing, we also see pockets of opportunity across the small and mid-cap segment.”
With that outlook in mind, let’s take a look at the 10 best stocks to buy according to billionaire Seth Klarman.
Our Methodology
For this list, we used Baupost Group’s Q3 13F portfolio and selected the top 10 holdings. We included Seth Klarman’s stake value for each holding at the end of Q3 2025 and the overall hedge fund sentiment for these stocks as of Q3 2025. The list is arranged in ascending order based on Seth Klarman’s stake value in each position.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
10. Liberty Global Ltd. (NASDAQ:LBTYK)
Baupost Group’s Stake Value: $254,479,000
Number of Hedge Fund Holders: 32
Liberty Global Ltd. (NASDAQ:LBTYK) is one of the best stocks to buy according to Seth Klarman. As of December 12, the average price target for LBTYK suggests an upside of 22%; however, the Street high indicates an upside of 216%. According to the Q3 13F filings, Seth Klarman’s hedge fund owns 21.65 million Class C common shares of Liberty Global, valued at approximately $254.5 million and accounting for 5.31% of the total portfolio.
On December 4, analyst David Wright from BofA Securities assigned a Sell rating on Liberty Global Ltd. (NASDAQ:LBTYK), along with a price target of $13.90.
Previously, on November 25, Liberty Global stated that it had planned an investment in ElevenLabs, which is one of the top voice AI companies worldwide. Its expertise includes text-to-speech features in an AI platform that provides chat agents, voice output, and voiceovers.
This investment will enable ElevenLabs to scale its voice model worldwide, with support from partners including Salesforce, Bertelsmann, Just Eat, Klarna, and Synthesia. The investment is made through the company’s technology investment arm, Liberty Global Ventures, one of many prominent investors strengthening ElevenLabs’ growth trajectory.
A Partner at Liberty Global Ventures, Rebecca Hunt, commented regarding this planned investment:
“Voice is becoming the next major interface for technology, and ElevenLabs is defining what’s possible in this space. The investment continues our track record of providing early backing for transformational tech infrastructure companies; we are honoured to be backing this category-defining team.”
Liberty Global Ltd. (NASDAQ:LBTYK), established in 2004 and based in Bermuda, offers broadband internet, TV, mobile, and fixed-line phone services to both households and businesses.
