In this article, we discuss the 5 important stock picks of major hedge funds in 2021. If you want to read our detailed analysis of these stocks, go directly to the 15 Important Stock Picks of Major Hedge Funds in 2021.
5. Berkshire Hathaway Inc. (NYSE:BRK-B)
Number of Hedge Fund Holders: 106
Gain in Share Price Over Past Year as of January 4: 34.9%
The market shift towards value stocks has helped Berkshire Hathaway Inc. (NYSE:BRK-B) outperform the S&P 500 this year. Hedge funds have long been of the view that Berkshire Hathaway Inc. (NYSE:BRK-B) should be a core holding in large portfolios. At the end of the third quarter of 2021, 106 hedge funds in the database of Insider Monkey held stakes worth $19 billion in Berkshire Hathaway Inc. (NYSE:BRK-B).
Berkshire Hathaway Inc. (NYSE:BRK-B) stock is expected to continue on an accelerated growth trajectory this year as inflation concerns persist. One of the reasons why Berkshire Hathaway Inc. (NYSE:BRK-B) is the ultimate value stock is the diversity of its business. Berkshire Hathaway Inc. (NYSE:BRK-B) owns and runs 69 operating firms and has close to $150 billion in cash for tough times.
In its Q1 2021 investor letter, Vltava Fund, an asset management firm, highlighted a few stocks and Berkshire Hathaway Inc. (NYSE:BRK-B) was one of them. Here is what the fund said:
“Despite the considerable rise in stock markets over the past year, there are still many attractive opportunities. Human nature also is playing a bit into our hands. Investor crowds often chase popular stocks, hot IPOs, or mysterious SPACs and completely leave aside stocks they consider boring and not sexy enough. A typical example of this category is our long-term largest position in Berkshire Hathaway. Since we bought it for the first time, its price has nearly quadrupled and yet it remains just as undervalued today as it was at that time. Considering the current rate at which it is buying back its own shares and the amount of cash that Berkshire Hathaway has, my greatest wish as a shareholder is for the company’s share price to remain as low as possible for as long as possible.”