In this article, we will discuss 5 best stocks to buy according to Ric Dillon’s Diamond Hill Capital based on Q2 holdings of the fund. If you want to read our detailed analysis of Dillon’s history, investment philosophy, and hedge fund performance, go directly to the 10 Best Stocks to Buy According to Ric Dillon’s Diamond Hill Capital.
5. The Walt Disney Company (NYSE: DIS)
Dillon’s Stake Value: $653,472,000
Percentage of Ric Dillon’s 13F Portfolio: 2.48%
Number of Hedge Fund Holders: 112
The Walt Disney Company (NYSE: DIS) and its subsidiaries are a global entertainment conglomerate. It was incorporated in 1923 and is placed fifth on the list of 10 best stocks to buy according to Ric Dillon’s Diamond Hill Capital. The Walt Disney Company (NYSE: DIS) currently has a $325.39 billion market capitalization and was able to deliver a 36.89% return in the past 12 months.
On August 13, RBC Capital analyst Kutgun Maral raised the price target on The Walt Disney Company (NYSE: DIS) to $210 from $202 and kept an “Outperform” rating on the shares. On August 12, The Walt Disney Company (NYSE: DIS) declared earnings for the third quarter of 2021. It posted earnings per share of $0.80, beating the estimates by $0.25.
The hedge fund chaired by Ric Dillon holds 3.72 million shares in The Walt Disney Company (NYSE: DIS) worth over $653 million, representing 2.48% of their portfolio. In addition, Diamond Hill Capital increased stakes in the firm by 13% in the second quarter of 2021. Crake Asset Management is a leading shareholder in The Walt Disney Company (NYSE: DIS), with 83,200 shares worth more than $14 billion.
RiverPark Funds, in its second-quarter 2021 investor letter, mentioned The Walt Disney Company (NYSE: DIS). Here is what the fund said:
“DIS shares declined for the quarter, taking a pause after a big fourth quarter and first quarter stock price advance, as Disney+ subscriber numbers were disappointing to investors. Disney+, the company’s DTC streaming business, had blown past previous subscriber projections, having gone from zero to 104 million in 17 months, but investors were now expecting 109 million subscribers. Management still expects significant continued growth to 230-260 million subscribers in 2024 ….”(Click here to see the full text)
4. Abbott Laboratories (NYSE: ABT)
Dillon’s Stake Value: $722,696,000
Percentage of Ric Dillon’s 13F Portfolio: 2.74%
Number of Hedge Fund Holders: 61
Abbott Laboratories (NYSE: ABT) is a healthcare company that develops, produces, and sells goods globally. It was founded in 1888 and is placed fourth on the list of 10 best stocks to buy according to Ric Dillon’s Diamond Hill Capital. Abbott Laboratories (NYSE: ABT) shares have offered investors 24.38% in returns over the course of the past 12 months.
On August 16, The Amplatzer Amulet Left Atrial Appendage Occluder from Abbott Laboratories (NYSE: ABT) received consent from the US Food and Drug Administration to treat patients with atrial fibrillation at risk of ischemic stroke. On July 23, Raymond James analyst Jayson Bedford raised the price target on Abbott Laboratories (NYSE: ABT) to $128 from $116 and maintained an “Outperform” rating on the shares.
Diamond Hill Capital holds 6.23 million shares in Abbott Laboratories (NYSE: ABT), worth over $722 million. This represents 2.74% of their portfolio. However, overall, hedge fund sentiment declined. The number of hedge fund positions declined to 61 at the end of the second quarter compared to 65 positions in the prior quarter.
Polen Capital, in its first-quarter 2021investor letter, mentioned Abbott Laboratories (NYSE: ABT). Here is what the fund said:
“Abbott Laboratories developed and commercialized multiple COVID tests during 2020, delivering a double-digit performance in what could have otherwise been a very challenging year. Management expects earnings per share to grow more than 30% in 2021. We believe it is poised to sustainably deliver double-digit earnings per share growth even as COVID testing sales decline from an expected $6.5-7.5 billion in the fiscal year 2021 to potentially as low as $300-$500 million several years from now….”(Click here to see the full text)
3. KKR & Co. Inc. (NYSE: KKR)
Dillon’s Stake Value: $733,203,000
Percentage of Ric Dillon’s 13F Portfolio: 2.78%
Number of Hedge Fund Holders: 53
KKR & Co. Inc. (NYSE: KKR) is a private equity and real estate investment business that focuses on direct and fund-of-funds investments. The company was founded in 1976 and stands third on the list of 10 best stocks to buy according to Ric Dillon’s Diamond Hill Capital. The shares of KKR & Co. Inc. (NYSE: KKR) surged 78.48% in the past 12 months.
On August 11, Deutsche Bank analyst Brian Bedell upgraded KKR & Co. Inc. (NYSE: KKR) to “Buy” from “Hold” and raised the price target to $75, up from $69. On August 3, KKR & Co. Inc. (NYSE: KKR) declared a quarterly dividend of $0.145 per share, in line with the previous.
Diamond Hill Capital holds more than 12.38 million shares in KKR & Co. Inc. (NYSE: KKR), worth over $733 million, representing 2.78% of their investment portfolio. There were 53 hedge funds in our database that held stakes in KKR & Co. Inc. (NYSE: KKR) at the end of the second quarter, compared to 56 funds in the second quarter of 2021.
Vulcan Value Partners, in its second-quarter 2021 investor letter, mentioned KKR & Co. Inc. (NYSE: KKR). Here is what the fund said:
“KKR & Co. Inc. was also a material contributor during the quarter. This company has deep and growing relationships with capital providers. The company has a stable management fee stream and a proven ability to convert investor capital into a performance fee stream. These attributes contribute to its stable and growing intrinsic values. In addition, the company enjoy nice tailwinds of increasing allocations to private and alternative investments. We are pleased to continue to own KKR & Co.”
2. Berkshire Hathaway Inc. (NYSE: BRK-B)
Dillon’s Stake Value: $759,545,000
Percentage of Ric Dillon’s 13F Portfolio: 2.88%
Number of Hedge Fund Holders: 115
Berkshire Hathaway Inc. (NYSE: BRK-B) operates in the insurance, freight rail transportation, and utility industries worldwide through its subsidiaries. The company was founded in 1998 and ranks second on the list of 10 best stocks to buy according to Ric Dillon’s Diamond Hill Capital. Berkshire Hathaway Inc. (NYSE: BRK-B) currently has a $655.07 billion market capitalization and was able to deliver a 38.60% return in the past 12 months.
On August 9, UBS analyst Brian Meredith raised the price target on Berkshire Hathaway Inc. (NYSE: BRK-B) to $329 from $319 and kept a “Buy” rating on the shares. On August 8, Berkshire Hathaway Inc. (NYSE: BRK-B) posted earnings for the second quarter of 2021. In addition, it reported second-quarter operating earnings of $6.69 billion, up 21% from $5.51 billion in the same quarter a year ago.
The hedge fund chaired by Ric Dillon holds more than 2 million shares in Berkshire Hathaway Inc. (NYSE: BRK-B) worth over $759 million. In addition, hedge funds are loading up on Berkshire Hathaway Inc. (NYSE: BRK-B), as Insider Monkey’s data shows that 115 hedge funds held stakes in the company as of the end of the second quarter of 2021, up from 111 funds a quarter earlier.
Black Bear Value Partners, in its second-quarter 2021 investor letter, mentioned Berkshire Hathaway Inc. (NYSE: BRK-B). Here is what the fund said:
“Please see Q1 letter for our Berkshire on a Napkin investment exercise. We have written on it extensively and will save your eyeballs from extraneous writing.
While Berkshire’s operating businesses saw their profits decline by ~10% in 2020, their long-term positioning at the cross-section of American business remains intact if not stronger.
Berkshire is very cheap for owning such high-quality businesses and will continue to grind higher and compound value for us.”
1. American International Group, Inc. (NYSE: AIG)
Dillon’s Stake Value: $982,808,000
Percentage of Ric Dillon’s 13F Portfolio: 3.73%
Number of Hedge Fund Holders: 39
American International Group, Inc. (NYSE: AIG) provides insurance products to commercial, institutional, and individual consumers. The company was founded in 1919 and is placed first on the list of 10 best stocks to buy according to Ric Dillon’s Diamond Hill Capital. American International Group, Inc. (NYSE: AIG) shares have returned 82.72% to investors over the course of the past 12 months.
On August 16, Wolfe Research analyst Michael Zaremski initiated coverage of American International Group, Inc. (NYSE: AIG) with an “Outperform” rating and gave a $63 price target. On August 5, American International Group, Inc. (NYSE: AIG) posted earnings for the second quarter of 2021. It reported earnings per share of $1.52, beating the estimates by $0.32.
Ric Dillon’s Diamond Hill Capital holds 20.65 million shares in American International Group, Inc. (NYSE: AIG), worth over $982 million, representing 3.73% of their portfolio. At the end of the second quarter of 2021, 39 hedge funds in the database of Insider Monkey held stakes worth $2.75 billion in American International Group, Inc. (NYSE: AIG), up from 33 the preceding quarter worth $2.08 billion.
You can also take a peek at 10 Best Stocks to Buy According to Richard Mashaal’s Senvest Management and 10 Best Stocks to Buy According to John Paulson
