Seth Klarman Is Buying These 5 Value Stocks in 2026

4. Willis Towers Watson (NASDAQ:WTW)

Baupost’s Stake: $259,632,000 

Willis Towers Watson (NASDAQ:WTW) is an insurance broker. It sits between large businesses and insurance companies, helping those businesses get the right coverage at the best price.

The stock is down about 20% over the past year amid AI fears that the technology could disintermediate brokers entirely — the market believes AI agents could easily do what Willis Towers Watson’s (NASDAQ:WTW) brokers do. However, bulls say AI fears are overblown because WTW works primarily with businesses on complex, customized insurance needs — a company with 15 golf courses needing property, flood, and liability coverage won’t be served by an off-the-shelf AI solution the way a consumer insuring a car might be. Based on the latest quarterly results, there have been no signs of AI impact on the Risk & Broking segment — client retention remains strong and there is no sign of AI cannibalization whatsoever. Instead, AI is actually helping Willis Towers Watson (NASDAQ:WTW) internally — WTW has reduced post-call reviews by a third, and AI-powered tools have boosted per-rep sales by 50%.

Polen Global Growth Strategy stated the following regarding Willis Towers Watson Public Limited Company (NASDAQ:WTW) in its fourth quarter 2025 investor letter:

“Additionally, we exited our position in Willis Towers Watson Public Limited Company (NASDAQ:WTW). While we believe the company is performing fine from an operational standpoint, we couldn’t justify owning two insurance brokers with the possibility of the insurance industry entering a “soft market” period for the next few years. Should our view on the industry turn more positive we can add to our current position in Aon, the market leader and a company that has historically navigated softer market periods well.”