Here’s Why Madison Large Cap Fund Sold Berkshire Hathaway (BRK-B)

Madison Investments, an investment advisor, released its “Madison Large Cap Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the second quarter, the fund (Class Y) increased 3.1%, compared to a 10.9% gain for the S&P 500 index. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second quarter 2025 investor letter, Madison Large Cap Fund highlighted stocks such as Berkshire Hathaway Inc. (NYSE:BRK-B). Berkshire Hathaway Inc. (NYSE:BRK-B) engages in the insurance, freight rail transportation, and utility businesses. The one-month return of Berkshire Hathaway Inc. (NYSE:BRK-B) was -3.86%, and its shares gained 9.31% of their value over the last 52 weeks. On July 21, 2025, Berkshire Hathaway Inc. (NYSE:BRK-B) stock closed at $474.41 per share, with a market capitalization of $1.023 trillion.

Madison Large Cap Fund stated the following regarding Berkshire Hathaway Inc. (NYSE:BRK-B) in its second quarter 2025 investor letter:

“During the quarter, we sold Berkshire Hathaway Inc. (NYSE:BRK-B), the conglomerate headed by Warren Buffett. Since Buffett took over control 60 years ago, its stock has compounded at an annual rate of 19.9%, versus 10.4% for the S&P 500, giving it an unmatched record of growth over that long a time span. The disadvantage of all that growth is that the company is now so large and diversified that it’s essentially a cross-section of the U.S. economy, and thus unlikely to grow its value at much of a premium to the market. Due to strong recent performance, we believe the stock now trades within its fair value range. Buffett recently announced that he is stepping back from the CEO role at the end of this year, and with the end of an era clearly in sight, we sold our holding.”

Berkshire Hathaway Inc. (BRK-B): "You're Getting A Great Franchise," Says Jim Cramer

A team of insurance professionals in a boardroom overlooking a city skyline.

Berkshire Hathaway Inc. (NYSE:BRK-B) is in 15th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 125 hedge fund portfolios held Berkshire Hathaway Inc. (NYSE:BRK-B) at the end of the first quarter which was 131 in the previous quarter. While we acknowledge the risk and potential of Berkshire Hathaway Inc. (NYSE:BRK-B) 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 Berkshire Hathaway Inc. (NYSE:BRK-B) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Berkshire Hathaway Inc. (NYSE:BRK-B) and shared the list of stocks Jim Cramer recently discussed. In addition, please check out our hedge fund investor letters Q2 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.