Peterson Investment, an investment management firm, released its “Peterson Investment Fund I” second-quarter 2025 investor letter. During the quarter, the fund declined by 10.1%, compared with a 10.9% gain in the S&P 500 including dividends. Despite the short-term setback, Peterson Investment Fund I remains ahead on a year-to-date basis, returning 13.6% net to investors versus the S&P 500’s 6.2% return. Looking further back, the firm highlighted its long-term record of compounding capital. Since its inception nearly 13.75 years ago, the fund has transformed a $1 million initial investment into $4.2 million net of fees, equating to an annualized return of 10.9%. Management emphasized that this enduring double-digit performance reflects the strength of its disciplined, value-based, and research-driven strategy, as well as its continued focus on alignment with investor interests. In addition, you can check the fund’s top 5 holdings to find out its best picks for 2025. A copy of Peterson Investment Fund’s Q2 2025 investor letter is available for download here.
One of the companies mentioned in the letter is Berkshire Hathaway Inc. (NYSE:BRK-B). Berkshire Hathaway Inc. (NYSE:BRK-B), through its subsidiaries, engages in the insurance, freight rail transportation, and utility businesses worldwide. Over the past month, Berkshire Hathaway Inc. (NYSE:BRK-B) rose by 1.07%, and its shares gained 9.44% of their value over the last 12 months. On September 22, 2025, Berkshire Hathaway Inc. (NYSE:BRK-B) shares closed at $493.71, with a market capitalization of $1.074 trillion.
Here is what they have to say about Berkshire Hathaway Inc. (NYSE:BRK-B) in their investor letter:
“During the 2025 Berkshire Hathaway Inc. (NYSE:BRK-B) Annual Meeting, 94-year-old Warren Buffett announced the natural succession of leadership, with Vice Chairman Greg Abel assuming day-to-day responsibilities effective January 1, 2026. Buffett will retain his role as Chairman of the Board to ensure a seamless transition in governance and strategy.
The market’s predictable short-term reaction to this announcement was a sell-off, pushing prices down 10%. This is certainly temporary and creates a compelling entry point into one of the world’s greatest compounding machines. Berkshire enters the second half of 2025 with a record cash balance of approximately $350 billion. This is not idle cash; it is a fortress of dry powder, earning over 4%, providing extraordinary and unmatched capability to deploy capital into attractive assets during the next market downturn.
This contrarian advantage, combined with the proven capital-allocation discipline of its culture, is what has driven decades of returns. Under the operational leadership of Abel and the continued strategic oversight of Buffett, we are confident that Berkshire Hathaway is positioned to compound in value during the years ahead.”
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Berkshire Hathaway Inc. (NYSE:BRK-B) ranks 15th in our list of the 30 most popular stocks among hedge funds. According to our data, 133 hedge fund portfolios held positions in Berkshire Hathaway Inc. (NYSE:BRK-B) at the end of the second quarter of 2025, up from 125 in the previous quarter. BRK-B surpassed Q2 2025 earnings expectations, posting an EPS of $0.69 compared to the forecast of $0.58. While we acknowledge the risk and potential of 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 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 UBS’ views on the company. 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.
