Berkshire Hathaway (BRK.B) Stock Is Cheap Right Now

Black Bear Value Partners recently released its Q4 2020 Investor Letter, a copy of which you can download here. The fund posted a return of -6.5% (net) in 2020, underperforming its benchmark, the S&P 500 Index which returned 18.4% in the same period. You should check out Black Bear Value Partners’ top 5 stock picks for investors to buy right now, which could be the biggest winners of this year.

In the Q4 2020 Investor Letter, the fund highlighted a few stocks and Berkshire Hathaway Inc (NYSE:BRK.B) is one of them. Berkshire Hathaway Inc (NYSE:BRK.B) is a multinational conglomerate holding company. In the last three months, Berkshire Hathaway Inc (NYSE:BRK.B) stock gained 14.8% and on March 12th it had a closing price of $260.02. Here is what the fund said:

“In the 3rd quarter of 2020 Berkshire bought back $9.3BB of stock, which is the most ever in a single period (the 2nd quarter was the most ever at that point). Year-to-date BRK has bought back ~$15BB of stock and potentially more in the 4th quarter.

Berkshire is very cheap for owning such high-quality businesses. I estimate that we own the stock at ~1.2x book value. This is not a heroic multiple by any stretch. A rough sum of the parts includes the value of the cash + stocks + operating businesses. We have gone thru a more detailed sum of the parts in past letters and little has changed. Roughly speaking, Berkshire is somewhere between 15-40% cheap on any reasonable metric.

For more discussion on Berkshire I would refer you to past letters as we have discussed it at length.”

Earlier this month, we published an article revealing that Berkshire Hathaway Inc (NYSE:BRK.B) stock hit a new 52-week high after reporting the latest quarterly financial report.

In Q4 2020, the number of bullish hedge fund positions on Berkshire Hathaway Inc (NYSE:BRK.B) stock increased by about 1% from the previous quarter, so a number of other hedge fund managers believe in Berkshire’s growth potential. Our calculations showed that Berkshire Hathaway Inc (NYSE:BRK.B) is ranked #18 among the 30 most popular stocks among hedge funds.

The top 10 stocks among hedge funds returned 231.2% between 2015 and 2020, and outperformed the S&P 500 Index ETFs by more than 126 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Here you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

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