Why do Investors Prefer Berkshire Hathaway (BRK-B)?

St. James Investment Company, an independent, fee-only, SEC-registered investment advisory firm, released its second quarter 2023 investor letter. A copy of the same can be downloaded here. The letter discussed the investment manager’s views on market crashes and according to him, each generation fails to learn from past lessons and financial markets are not immune to fads and trends. The firm invests in high-quality businesses focusing on long-term returns. In addition, please check the fund’s top five holdings to know its best picks in 2023.

St. James Investment Company highlighted stocks like Berkshire Hathaway Inc. (NYSE:BRK-B) in the second quarter 2023 investor letter. Headquartered in Omaha, Nebraska, Berkshire Hathaway Inc. (NYSE:BRK-B) engages in insurance, freight rail transportation, and utility businesses. On July 7, 2023, Berkshire Hathaway Inc. (NYSE:BRK-B) stock closed at $340.90 per share. One-month return of Berkshire Hathaway Inc. (NYSE:BRK-B) was 1.67%, and its shares gained 21.39% of their value over the last 52 weeks. Berkshire Hathaway Inc. (NYSE:BRK-B) has a market capitalization of $ 747.294 billion.

St. James Investment Company made the following comment about Berkshire Hathaway Inc. (NYSE:BRK-B) in its second quarter 2023 investor letter:

“Nvidia’s market capitalization is 37% greater than Berkshire Hathaway Inc. (NYSE:BRK-B). However, when comparing fundamentals, Berkshire Hathaway generated $23 billion in free cash flow over the past four quarters while Nvidia generated only $2.6 billion (SBC adjusted). Furthermore, Berkshire Hathaway does not dilute shareholders with stock-based compensation. Despite a wide array of available investment options, market participants have overwhelmingly favored a select few dominant technology companies.”

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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, 108 hedge fund portfolios held Berkshire Hathaway Inc. (NYSE:BRK-B) at the end of first quarter 2023 which was 110 in the previous quarter.

We discussed Berkshire Hathaway Inc. (NYSE:BRK-B) in another article and shared the top stock picks in Bill Gates’ most recent portfolio. In addition, please check out our hedge fund investor letters Q2 2023 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.