GDS Investments: ‘Berkshire Hathaway Should Do Well in Any Economic Scenario’

GDS Investments, an investment management firm, published its year-end investor letter – a copy of which can be seen here. In the letter, the fund talked about the negative impact brought about by the pandemic and how it affected the market as a whole. GDS mentioned that their focus will be on companies that can positively absorb the effects of the rising inflation and reduced monetary policy. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.op 5 holdings to have a peek at their top bets for 2021.

GDS Investments, in their Q4 2020 investor letter, mentioned Berkshire Hathaway Inc. (NYSE: BRK-B) and emphasized their views on the company. Warren Buffett’s Berkshire Hathaway Inc. is a Nebraska-based global conglomerate company. It currently has a $608.2 billion market capitalization. Since the beginning of the year, BRK-B delivered a 13.85% return, decently extending its 12-month gains to 50.02%. As of March 10, 2021, the stock closed at $263.99 per share.

Here is what GDS Investments has to say about Berkshire Hathaway Inc. in their Q4 2020 investor letter:

“In 2020, we initiated our position in Berkshire Hathaway, Inc. Class B (NYSE: BRK.B) as a “survive and thrive” anchor to the portfolio. During the third quarter, the company repurchased $9B worth of shares (bringing it to $16B in repurchased share value year-to-date). Having started our ownership at a deeply discounted price of approximately $180.00 per share, the company recently closed at approximately $232.00 per share. We anticipate continuing to hold this stock which should do well in any economic scenario.”

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Our calculations show that Berkshire Hathaway Inc. (NYSE: BRK-B) does not belong in our list of the 30 Most Popular Stocks Among Hedge Funds. As of the end of the fourth quarter of 2020, Berkshire Hathaway Inc. was in 110 hedge fund portfolios, compared to 109 funds in the third quarter. BRK-B delivered a 16.12% return in the past 3 months.

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.

At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, Federal Reserve has been creating trillions of dollars electronically to keep the interest rates near zero. We believe this will lead to inflation and boost real estate prices. So, we recommended this real estate stock to our monthly premium newsletter subscribers. We go through lists like the 15 best innovative stocks to buy to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our website:

Disclosure: None. This article is originally published at Insider Monkey.