Billionaire Bruce Berkowitz’s 6 Stock Picks with Highest Upside Potential

Page 5 of 5

1. Energy Transfer LP (NYSE:ET)

Fairholme Capital Management’s Stake: $16,708,311

Number of Hedge Fund Holders: 37

Average Upside Potential: 34.5%

Energy Transfer LP offers energy-related services in the United States. The company is in a great position near the Permian Basin, and has expanded operations through key acquisitions and mergers such as the Lotus Midstream, Crestwood Equity Partners, and the purchase of WTG Midstream, which operated the largest private Permian gas gathering and processing business with assets located in the core of the Midland Basin. These deals have significantly enhanced its position in the Permian region.

On May 7, analyst Michael Blum from Wells Fargo maintained an “Overweight” rating on the stock but lowered its price target from $22.00 to $21.00. The rating signifies continued optimism for Energy Transfer LP and that the firm expects better-than-average performance compared to other stocks in the sector. The company recently reported its first-quarter earnings for 2025, revealing mixed performance against market expectations.

It surpassed earnings per share (EPS) forecasts, reporting $0.37 compared to the projected $0.36. However, revenue fell short of expectations, generating $21.02 billion against a forecast of $22.42 billion. The company maintains an attractive 7.54% dividend yield and has raised its dividend for three consecutive years.

While we acknowledge the potential of ET as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than ET but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.

Page 5 of 5