5 Best Value Stocks to Buy for 2021

3. Berkshire Hathaway (NYSE: BRK-A) (NYSE: BRK-B)

Tom Russo looks bullish over Berkshire Hathaway’s (NYSE: BRK.A) (NYSE: BRK.B) performance over the last two decades. The hedge fund has been holding big positions in both class A and B shares. The firm held 3419 shares of BRK.A and almost 2 million shares of BRK.B at the end of the fourth quarter. Both positions generated strong share price gains in the last two decades.

In the Q2 investor’s letter, Nomadic Value Investment Partners highlighted the confidence in Berkshire Hathaway. Here is what Nomadic Value Investment Partners stated:

“We added to Berkshire Hathaway. I won’t spend too much talking about this, but BRK is as attractively priced as it’s been in some time. The press’s and FinTwit’s fascination with “Warren’s lost it” is at a cyclical peak and is complete noise. However, the valid bear argument is that BRK is too big to compound at good rates going forward, and subsidiary company performance will be weak for the next couple of years with its high exposure to air traffic (Precision Cast Parts and previously held airline stocks) and holdings in “old economy” manufacturing and retail businesses. Also, short-term there’s an unknown consequence of insurance claim payouts and/or refunds13 . We wouldn’t completely disagree with these judgments, and the optics are certainly bad when BRK doesn’t buy back shares in a quarter with a substantial sell-down. However, with a long-term lens and given the management style of BRK (conservative talk and overperform), we will likely be quite satisfied in the future – whatever that looks like. Meanwhile, we’ve gotten into a range where 30%-50% of BRK is free. Are the actual growth prospects for Berkshire this dire? Berkshire is our largest position.”