We just covered Forget AI: Legendary Value Investor Seth Klarman Is Buying These 10 Value Stocks in 2026. Willis Towers Watson (NASDAQ:WTW) ranks #4 (see Seth Klarman Is Buying These 5 Value Stocks in 2026).
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.” (Click Here to Read the Letter in Detail).
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While we acknowledge the risk and potential of WTW 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 WTW and that has 10,000% upside potential, check out our report about the cheapest AI stock.
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