5 Best Stocks to Buy According to Billionaire Seth Klarman

1. Restaurant Brands International Inc. (NYSE:QSR)

Baupost Group’s Stake: $551 Million

Restaurant Brands International Inc. (NYSE:QSR) is a relatively recent addition to the 13F portfolio of Baupost Group. The fund purchased a small stake in the company back in late 2024, consisting of just over 28,000 shares. In the subsequent quarters, the fund has aggressively bought additional shares of Restaurant Brands, adding to the initial holding in four of the last five quarters. Filings for the fourth quarter of 2025 show that Baupost has reduced this holding by just 2% compared to filings for the previous quarter. The stake still comprises over 8 million shares and represents more than 10% of the total 13F portfolio of the fund.

At an Investor Day event held at the end of February, Restaurant Brands International Inc. (NYSE:QSR) announced that it plans to become a 99% franchised business and set a goal of 1,800 net new restaurants per year by 2028. Billionaire Seth Klarman, who holds a sizable stake in the firm, has talked about high returns businesses with stable cash flows, applicable to the business model of Restaurant Brands. Klarman, in his book Margin of Safety: Risk-Averse Value Investing Strategies for the Thoughtful Investor, published in 1991, said for investing, at times a particular method may stand out as the most appropriate. Net present value would be most applicable, per Klarman, in valuing a high-return business with stable cash flows such as a consumer-products company.

Restaurant Brands International Inc. (NYSE:QSR) operates as a quick service restaurant company in Canada, the United States, and internationally. It operates through six segments: Tim Hortons, Burger King, Popeyes Louisiana Kitchen, Firehouse Subs, International, and Restaurant Holdings.

While we acknowledge the risk and potential of QSR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than QSR and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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