In this article, we discuss 5 best stocks to buy now according to Tom Gayner’s Markel Gayner Asset Management. If you want to read our detailed analysis of Gayner’s history, investment philosophy, and hedge fund performance, go directly to 10 Best Stocks to Buy Now According to Tom Gayner’s Markel Gayner Asset Management.
5. Amazon.com, Inc. (NASDAQ:AMZN)
Markel Gayner Asset Management’s Stake Value: $322,956,000
Markel Gayner Asset Management’s 13F Portfolio: 3.84%
Number of Hedge Fund Holders: 279
Amazon.com, Inc. (NASDAQ:AMZN) operates as an e-commerce retailer in North America and worldwide, offering consumer products and subscriptions. The number of hedge funds tracked by Insider Monkey having stakes in Amazon.com, Inc. (NASDAQ:AMZN) grew to 279 in Q4, from 242 in the preceding quarter. These funds hold a consolidated stake worth about $49.16 billion.
Truist analyst Youssef Squali cut his price objective on Amazon.com, Inc. (NASDAQ:AMZN) from $4,000 to $3,500 on April 29 but maintained his Buy rating. According to the analyst, Amazon.com, Inc. (NASDAQ:AMZN) will have a difficult second quarter as ecommerce demand grows and cost concerns emerge, but the company’s prospects will improve after that.
Markel Gayner Asset Management began buying Amazon.com, Inc. (NASDAQ:AMZN) shares in the third quarter of 2013. In the first quarter of 2022, the hedge fund purchased an additional 550 shares, increasing its position in Amazon.com, Inc. (NASDAQ:AMZN) by about 1%. Ken Fisher’s Fisher Asset Management is a prominent stakeholder of Amazon.com, Inc. (NASDAQ:AMZN), with a position worth $7.70 billion.
In its Q1 2022 investor letter, Farrer Wealth Advisors mentioned Amazon.com, Inc. (NASDAQ:AMZN). Here is what the fund said:
“Amazon: We had a medium-sized position in Amazon which we exited after the company released its earnings. We thought earnings on aggregate were just fine and were especially impressed to see AWS (Amazon Web Services) start to reaccelerate its growth, up nearly 40% yoy. However, looking beneath the hood a little bit, we noticed a significant slowdown in the 1P and 3P ecommerce businesses that enjoyed a nice covid-bump in previous quarters. The international business also saw negative yoy growth as the covid bump deflated and competition heat up in markets such as Southeast Asia, Latin America, and India. None of these issues individually were a huge cause for concern, but they did force us to lower our internal projections. Given this, we felt the internal rate of return (“IRR”) baked into the price post-earnings was not particularly attractive given other opportunities available, and so, we exited the position. None of this is to say that Amazon is in any trouble, and we believe current investors will do just fine over time. We remain big fans of the companies and think Prime and AWS may be some of the best businesses ever created, so we reserve the right to buy back the position at cheaper valuations (or at a higher potential IRR).”
4. Alphabet Inc. (NASDAQ:GOOG)
Markel Gayner Asset Management’s Stake Value: $384,017,000
Markel Gayner Asset Management’s 13F Portfolio: 4.57%
Number of Hedge Fund Holders: 158
Alphabet Inc. (NASDAQ:GOOG) is a technology conglomerate best known for its search engine, Google. Canaccord analyst Maria Ripps reduced her price objective on Alphabet to $3300 from $3500 on April 27 and maintained a Buy recommendation on the stock. She stated that Alphabet Inc. (NASDAQ:GOOG)’s first-quarter results were mixed, with ad revenue increasing in line with forecasts as Search gained from strong retail performance and high travel demand. Still, YouTube suffered from a rapidly changing market.
Alphabet Inc. (NASDAQ:GOOG), on April 26, posted earnings for the first quarter. The reported EPS came in at $24.62, missing estimates by $1.14. Revenue over the period gained 23% compared to the previous year’s quarter, reaching $68.01 billion, outperforming estimates by $140 million.
Fisher Asset Management revealed a significant stake in Alphabet Inc. (NASDAQ:GOOG) in Q1, worth roughly $5.63 billion. Overall, 158 hedge funds tracked by Insider Monkey held long positions in Alphabet Inc. (NASDAQ:GOOG) in Q4, up from 156 in the previous quarter. The total stakes owned exceeded $36.63 billion.
At the end of the first quarter of 2022, Markel Gayner Asset Management held 137,493 shares in Alphabet Inc. (NASDAQ:GOOG), worth $384.02 million. The holding accounted for 4.57% of Tom Gayner’s overall portfolio.
Baron Funds, an asset management firm, in its Q1 2022 investor letter, mentioned Alphabet Inc. (NASDAQ:GOOG). Here is what the fund said:
“We have modestly reduced the size of our position in Alphabet Inc. (NASDAQ:GOOG) (from 6.5% at the end of the fourth quarter of 2021 to 5.3% as of the end of the first quarter of 2022), after the stock rallied 64% in 2021 and continued outperforming during the first quarter, declining just 3%.”
3. Brookfield Asset Management Inc. (NYSE:BAM)
Markel Gayner Asset Management’s Stake Value: $493,049,000
Markel Gayner Asset Management’s 13F Portfolio: 5.87%
Number of Hedge Fund Holders: 29
Brookfield Asset Management Inc. (NYSE:BAM) provides institutional and retail clients with public and private investment products and services. As of the first quarter of 2022, Markel Gayner Asset Management’s stake in Brookfield Asset Management Inc. (NYSE:BAM) was a hefty $493.05 million, which covers 5.87% of the fund’s 13F portfolio.
Following the “excellent” Q1 results, Deutsche Bank analyst Brian Bedell decreased his price objective on Brookfield Asset Management Inc. (NYSE:BAM) to $60 from $62 and reiterated a Hold rating on the stock. The analyst believes the shares have much less potential than the other alternative managers at current pricing.
By the end of the fourth quarter, Insider Monkey found Brookfield Asset Management Inc. (NYSE:BAM) to be a part of 29 hedge fund portfolios. The total stakes that these funds had in the company are worth $2.73 billion, down from $2.50 billion the prior quarter with 32 positions.
In its Q2 2021 investor letter, Baron Funds mentioned Brookfield Asset Management Inc. (NYSE:BAM). Here is what the fund said:
“The shares of long-term holding Brookfield Asset Management Inc. gained 15% in the most recent quarter. The company is a leading alternative asset manager focused on investing in high-quality real estate and infrastructure related assets that tend to generate predictable and growing cash flows. We remain bullish about the ongoing prospects for Brookfield given the secular growth opportunity for alternative assets, the company’s many competitive advantages including scale, global capabilities, its well known brand name, operating expertise, and performance track record. We hold management in high regard and believe the shares remain attractively valued.”
2. Berkshire Hathaway Inc. (NYSE:BRK-B)
Markel Gayner Asset Management’s Stake Value: $540,648,000
Markel Gayner Asset Management’s 13F Portfolio: 6.44%
Number of Hedge Fund Holders: 108
Berkshire Hathaway Inc. (NYSE:BRK-B) is a company that specializes in property and liability insurance and reinsurance, as well as utilities and energy, freight rail transportation, banking, manufacturing, and retail.
On May 1, Keefe Bruyette analyst Meyer Shields reduced his price target on Berkshire Hathaway Inc. (NYSE:BRK-B) to $560,000 from $565,000 and maintained a Market Perform rating on the shares. According to Shields, Berkshire Hathaway Inc. (NYSE:BRK-B)’s operating profit per share of $4,774 beat the Street’s projection of $4,278 in the first quarter, owing to higher-than-expected non-insurance profits that were somewhat offset by lower insurance underwriting revenue and higher-than-expected taxes.
At the end of the fourth quarter of 2021, 108 hedge funds in the database of Insider Monkey held stakes worth $19.32 billion in Berkshire Hathaway Inc. (NYSE:BRK-B), up from 106 the preceding quarter worth $19.46 billion.
1. Berkshire Hathaway Inc. (NYSE:BRK-A)
Markel Gayner Asset Management’s Stake Value: $589,218,000
Markel Gayner Asset Management’s 13F Portfolio: 7.01%
Number of Hedge Fund Holders: 108
Berkshire Hathaway Inc. (NYSE:BRK-A) operates in the insurance, freight rail transportation, and utility industries worldwide through its subsidiaries. It runs railroad networks in North America and provides insurance and reinsurance services. Berkshire Hathaway Class A shares ended at a record $500,000 per share on March 16, 2022, putting the company’s market valuation at almost $730 billion.
On May 2, Berkshire Hathaway Inc. (NYSE:BRK-A) posted earnings results for the first three months of 2022. The revenue over the period was $70.81 billion, up 9.6% Y/Y.
Berkshire Hathaway Inc. (NYSE:BRK-A) holds the top most position in Gayner’s portfolio as of the first quarter of 2022, with Markel Gayner Asset Management owning stakes valued at $589.22 million. Out of the hedge funds being tracked by Insider Monkey, Gardner Russo & Gardner is a leading shareholder of Berkshire Hathaway Inc. (NYSE:BRK-A), with 2,799 shares worth more than $1.48 billion.
You can also take a peek at 10 Tech Stocks to Buy Now According to Barry Dargan’s Intermede Investment Partners and 10 Stocks to Buy According to Joshua Pearl’s Hickory Lane Capital Management.
