5 Best Stocks to Buy According to Billionaire Seth Klarman

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In this article, we discuss the 5 best stocks to buy according to billionaire Seth Klarman. If you want to read Klarman’s thoughts on how to navigate the current market and see his top 15 stock picks, please visit 15 Best Stocks to Buy According to Billionaire Seth Klarman.

5. Union Pacific Corporation (NYSE:UNP)

Baupost Group’s Stake: $376 Million

Union Pacific Corporation (NYSE:UNP) is a recent addition to the 13F portfolio of Baupost Group. The fund owned a stake in the railroad firm back in the second quarter of 2023, but disposed of it in the subsequent quarter. A new position was opened in the stock in the third quarter of 2025, consisting of 1.5 million shares. In the fourth quarter, this holding was increased by close to 9% to 1.63 million shares. This stake accounts for nearly 7% of the 13F portfolio of Baupost. In earnings for the fourth quarter of 2025, Union Pacific said it was planning $3.3 billion for 2026 capital improvements, expected to improve operating ratio versus 2025.

Union Pacific Corporation (NYSE:UNP) management also acknowledged macroeconomic headwinds, noting that the S&P Global’s 2026 economic estimates in key areas such as industrial production, housing starts and auto sales had deteriorated. Specific to 2026, the earnings outlook was set at the mid-single-digit range amid volume and cost headwinds.

Read More: 15 AI Stocks That Are Quietly Making Investors Rich

Union Pacific Corporation (NYSE:UNP) operates in the railroad business in the United States. It offers transportation services for grain and grain products, fertilizers, food and refrigerated products, and coal and renewables to grain processors, animal feeders, and ethanol and renewable biofuel producers, and construction products.

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