In this article, we discuss the 10 best stocks to buy today according to Wallace Weitz’s hedge fund.
Known in the financial world as ‘Omaha’s Other Miracle’, both for his value investment strategy and residence in Warren Buffett’s vicinity, Wallace Weitz is a towering figure in the investment community. He founded his hedge fund in 1983, and currently serves as its Co-Chief Investment Officer and Portfolio Manager. Weitz’s fund currently has approximately $2.38 billion in assets under management (AUM), with primary holdings in technology, services and the financial sector.
Weitz has a Bachelor’s degree in Economics from Carleton College, and is known as a savvy investor who focuses on troubled companies that eventually give significant gains.
Some of the notable stocks in Weitz’s portfolio include Berkshire Hathaway Inc. (NYSE: BRK.A), Alphabet Inc. (NASDAQ: GOOG), and Visa Inc. (NYSE: V).
Based on the third quarter holdings data of Weitz Investment Management, here is a list of top 10 stocks to buy according to Wallace Weitz.
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10 Best Stocks to Buy Today According to Wallace Weitz’s Hedge Fund
10. Mastercard Incorporated (NYSE:MA)
Weitz Investment Management’s Stake Value: $85.7 million
Percentage of Weitz Investment Management’s 13F portfolio: 3.58%
Total Number of Hedge Fund Holders: 156
Mastercard Incorporated (NYSE: MA) starts off our list of top stocks to buy according to Wallace Weitz. The technology giant offers financial payment solutions which connect merchants, institutions, governments and businesses.
As of the end of the third quarter, Wallace Weitz’s fund owned 246,600 shares of the company, worth $85.74 million. The fund increased its stake in the company by 3% in the third quarter as compared to the previous quarter.
Out of 873 hedge funds in Insider Monkey’s database, 156 reported owning positions in Mastercard Incorporated, with a total value of $17.09 billion. This data was compiled as of the second quarter of 2021.
In Q3 2021, Mastercard Incorporated posted an EPS of $2.37, beating estimates by $0.18.
On November 15, research firm Mizuho retained its ‘Buy’ rating on Mastercard Incorporated stock, raising the price target to $465 from $450.
Just like Berkshire Hathaway Inc., Alphabet Inc., and Visa Inc., Mastercard Incorporated is a popular stock among hedge funds.
9. Starz Acquisition LLC (NASDAQ:STRZA)
Weitz Investment Management’s Stake Value: $87 million
Percentage of Weitz Investment Management’s 13F portfolio: 3.64%
Total Number of Hedge Fund Holders: N/A
The media and entertainment firm ranks 9th on our list of top stocks to buy according to Walter Weitz’s fund. Starz Acquisition LLC (NASDAQ: STRZA) was recently acquired by Lions Gate Entertainment Corp. (NYSE:LGF-A) for $4.4 billion, in a bid to increase its market dominance in premium scripted television, and to boost its global distribution presence.
8. Visa Inc. (NYSE:V)
Weitz Investment Management’s Stake Value: $95.22 million
Percentage of Weitz Investment Management’s 13F portfolio: 3.98%
Total Number of Hedge Fund Holders: 162
Visa Inc. is a digital payment services company based in San Francisco, California. Weitz Investment Management Inc owns 427,500 shares in the company, with a combined value of $95.22 million. Weitz has increased his holding in Visa Inc. by 3% over the last quarter.
Visa Inc. posted an EPS of $1.62 in Q3 2021, beating estimates by $0.08. The company is expected to enjoy growth in 2022 as the reopening of US borders for vaccinated travelers will boost international payments.
On November 17, research firm UBS initiated its coverage on Visa Inc. with a ‘Buy’ rating. The firm’s analyst Rayna Kumar set the price target at $275.
7. The Charles Schwab Corporation (NYSE:SCHW)
Weitz Investment Management’s Stake Value: $96.51 million
Percentage of Weitz Investment Management’s 13F portfolio: 4.04%
Total Number of Hedge Fund Holders: 72
Next up is The Charles Schwab Corporation (NYSE: SCHW), a financial services company based in Austin, Texas. It operates through its two segments: Investor Services and Advisor Services. The company offers asset and wealth management, securities brokerage, banking and financial advisory services.
As of the end of the third quarter, Wallace Weitz’s fund owned 1,325,000 shares of The Charles Schwab Corporation, worth $96.51 million. This represents 4.04% of Weitz’s total holdings.
On October 26, research firm Morgan Stanley kept its ‘Overweight’ rating on The Charles Schwab Corporation stock, raising the price target to $115 from $97. Analyst Michael Cyprys noted that the company saw accelerated customer growth since its merger with TD Ameritrade, and is positioned to reach a “$200+ billion valuation” in the next five years.
In Q3 2021, The Charles Schwab Corporation posted an EPS of $0.84, beating estimates by $0.03. The company raked in $4.57 billion in revenue for the quarter, beating analysts’ forecast by $47.10 million.
In Q2 2021, 72 out of 873 hedge funds tracked by Insider Monkey reported owning stakes worth $4.85 billion in The Charles Schwab Corporation. In contrast, 76 hedge funds held $4.90 billion worth of stakes in the previous quarter.
6. Meta Platforms, Inc. (NASDAQ:FB)
Weitz Investment Management’s Stake Value: $97.37 million
Percentage of Weitz Investment Management’s 13F portfolio: 4.07%
Total Number of Hedge Fund Holders: 266
Ranking 6th on Wallace Weitz’s list of top stocks to buy is Meta Platforms, Inc. (NASDAQ: FB), formerly known as Facebook Inc. The global social media conglomerate owns and operates popular platforms WhatsApp and Instagram, and has a market cap of $960.54 billion. According to regulatory filings for the third quarter, Weitz’s fund owns 286,900 shares of the company, which represents 4.07% of the fund’s overall portfolio.
In the third quarter of 2021, Meta Platforms, Inc. posted an EPS of $3.22, beating estimates by $0.04.
On October 26, research firm Jefferies maintained its ‘Buy’ rating on Meta Platforms, Inc. stock, setting a $420 price target.
Meta Platforms, Inc. remained popular among hedge funds, as 266 hedge funds out of 873 in Insider Monkey’s database reported owning stakes in the company in the second quarter of 2021. The total worth of these stakes was $42.34 billion.
Along with Berkshire Hathaway Inc., Alphabet Inc., and Visa Inc., Meta Platforms, Inc. is a stock option continuing to attract investors.
5. Laboratory Corporation of America Holdings (NYSE:LH)
Weitz Investment Management’s Stake Value: $101.60 million
Percentage of Weitz Investment Management’s 13F portfolio: 4.25%
Total Number of Hedge Fund Holders: 53
Then there’s Laboratory Corporation of America Holdings (NYSE: LH), a clinal lab which conducts various health tests through its franchises around the globe. The company also provides diagnostic data to heath professionals for better decision-making and research. Laboratory Corporation of America Holdings operates through its segments: Drug Development and Diagnostics, and is headquartered in Burlington, North Carolina.
By the end of September, Weitz Investment Management reported owning 361,000 shares in Laboratory Corporation of America Holdings, at a value of $101.60 million. The fund has decreased its holdings in the company by 3% over the last quarter.
On November 1, research firm Credit Suisse maintained its ‘Outperform’ rating on Laboratory Corporation of America Holdings stock, setting the price target at $338.
In November, the firm reported its plans to acquire Toxicon, a contract research organisation which specialises in non-clinical testing services. With increased annual revenues of around $40 million, this merger is expected to be completed by end of the year, and will allow Laboratory Corporation of America Holdings to partner with biotech and pharmaceutical clients in the Boston area.
In Q2 2021, 53 hedge funds owned shares in Laboratory Corporation of America Holdings, with a combined value of $2.55 billion. This is in comparison to the previous quarter where 54 hedge funds reported owning shares worth $2.47 billion.
4. Liberty Broadband Corporation (NASDAQ:LBRDA)
Weitz Investment Management’s Stake Value: $108.45 million
Percentage of Weitz Investment Management’s 13F portfolio: 4.54%
Total Number of Hedge Fund Holders: 28
On the fourth spot among best stocks to buy now according to Wallace Weitz is Liberty Broadband Corporation (NASDAQ: LBRDA), a provider of cable, broadband internet and mobile GPS technologies. In its Q3 13F filings, Wallace Weitz’s hedge fund reported owning 628,000 shares in Liberty Broadband Corporation.
On November 16, research firm Credit Suisse initiated coverage of Liberty Broadband Corporation with an ‘Outperform’ rating, and a $211 price target. This rating was provided by the firm’s analyst Grant Joslin.
As of the second quarter, 28 hedge funds out of the 873 tracked by Insider Monkey held stakes in Liberty Broadband Corporation worth $904.86 million in aggregate, compared to 23 hedge funds holding $774.86 million a quarter earlier.
3. Aon plc (NYSE:AON)
Weitz Investment Management’s Stake Value: $112.89 million
Percentage of Weitz Investment Management’s 13F portfolio: 4.72%
Total Number of Hedge Fund Holders: 68
Next in line in the list of the best stocks to buy now according to Wallace Weitz is the global financial services giant Aon plc (NYSE: AON). In its Q3 13F filing, Weitz’s hedge fund included a $112.89 million position in the company that contained 395,060 shares, which is a a decrease of 7% in total holdings as compared to the end of June.
Aon plc (NYSE: AON) provides financial solutions to its clients focused around health, risk and retirement plans. The company is headquartered in Dublin, Ireland and employs 50,000 people worldwide.
On November 1, research firm MKM Partners kept its ‘Buy’ rating on Aon plc (NYSE: AON) stock, raising the price target to $370 from $350. Analyst Harry Fong noted that the company’s organic revenue growth stood strong at 12%, and that the demand for Aon’s consulting services is likely to surge as insurance buyers look for assistance in holding down their insurance premiums.
In Q2 2021, 68 hedge funds held stakes worth $8.12 billion in Aon plc (NYSE: AON), showing a downward trend from the previous quarter where 72 hedge funds held positions in the company.
2. Berkshire Hathaway Inc. (NYSE:BRK.A)
Weitz Investment Management’s Stake Value: $137.87 million
Percentage of Weitz Investment Management’s 13F portfolio: 5.77%
Total Number of Hedge Fund Holders: 116
In its regulatory filings for the third quarter, Wallace Weitz’s hedge fund Weitz Investment Management reported owning 505,150 shares in Berkshire Hathaway Inc., amounting to a $137.87 million value which represents 5.77% of Weitz’s total holdings.
Berkshire Hathaway Inc. is a multinational conglomerate holding company that operates through its subsidiaries in energy, transportation, utilities, insurance, food and retail. Founded in Omaha, Nebraska in 1837, the company is currently owned and chaired by Warren Buffett, Weitz’s mentor and associate from his early days in the finance industry.
In Q3 2021, Berkshire Hathaway Inc. posted an EPS of $4302.03, missing estimates by $191.31. The company posted $70.58 billion in revenue, surpassing expectations by $163.14 million.
On November 7, research firm Keefe Bruyette kept its ‘Market Perform’ rating on Berkshire Hathaway Inc. stock, setting the price target at $485,000 price target. The rating was provided by firm’s analyst Meyer Shields.
116 hedge funds out of 873 tracked by Insider Monkey held stakes in Berkshire Hathaway Inc. worth $22.38 billion, as of the second quarter of 2021.
1. Alphabet Inc. (NASDAQ:GOOG)
Weitz Investment Management’s Stake Value: $159.54 million
Percentage of Weitz Investment Management’s 13F portfolio: 6.67%
Total Number of Hedge Fund Holders: 155
Alphabet Inc. is Wallace Weitz’s top holding, with 59,860 shares valued at $159.54 million. Headquartered in California, Alphabet Inc. is the parent company of Google and its related platforms.
On November 2, research firm Morgan Stanley maintained its ‘Overweight’ rating on Alphabet Inc. Class A shares, raising the price target to $3,200 from $3,000. Firm’s analyst Brian Nowak noted that the company’s growing profit base looks set to deliver outsized cash flows, on the back of better-than-expected results for Q3 2021.
Out of 873 hedge funds tracked by Insider Monkey, 155 hedge funds reported owning positions worth $33.79 billion in Alphabet Inc. by the end of June. This shows a change from the previous quarter where 159 hedge funds held stakes worth $29.08 billion.
You can also take a peek at the 15 Best Stocks To Buy Now For Beginner Investors and Seth Klarman’s Top 10 Stock Picks
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This article is originally published at Insider Monkey.
