Here’s What Makes Graham Holdings Co. (GHC) a Good Investment?

The London Company, an investment management company, released “The London Company Small Cap Strategy” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. US equities continued their rally in the third quarter, driven by the Fed rate cut, solid corporate earnings, and enthusiasm around AI. The small-cap portfolio appreciated 1.9% (1.6% net) in the third quarter, compared to the Russell 2000 Index’s 12.4% gain. Please review the fund’s top 5 holdings to gain insight into their key selections for 2025.

In its third-quarter 2025 investor letter, The London Company Small Cap Strategy highlighted stocks such as Graham Holdings Company (NYSE:GHC). Graham Holdings Company (NYSE:GHC) is a diversified holding company. The one-month return of Graham Holdings Company (NYSE:GHC) was -5.47%, and its shares gained 20.50% of their value over the last 52 weeks. On November 3, 2025, Graham Holdings Company (NYSE:GHC) stock closed at $1,036.52 per share, with a market capitalization of $4.522 billion.

The London Company Small Cap Strategy stated the following regarding Graham Holdings Company (NYSE:GHC) in its third quarter 2025 investor letter:

“Graham Holdings Company (NYSE:GHC) – GHC outperformed the benchmark on strong 2Q results, led by solid growth in Kaplan Education and the continued expansion of its Healthcare segment. The stock likely benefited from the perceived easing of broadcast TV M&A regulation, which could enable future station monetization or local consolidation. We remain positive on the GHC family’s fiduciary leadership, strong balance sheet, and track record of returning capital to shareholders.”

Is Graham Holdings Company (GHC) the Best Low Float Stock to Invest in Now?

Graham Holdings Company (NYSE:GHC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 20 hedge fund portfolios held Graham Holdings Company (NYSE:GHC) at the end of the second quarter, the same as in the previous quarter. While we acknowledge the risk and potential of Graham Holdings Company (NYSE:GHC) 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. If you are looking for an AI stock that is more promising than Graham Holdings Company (NYSE:GHC) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Graham Holdings Company (NYSE:GHC) and shared Longleaf Partners Small-Cap Fund’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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