Vltava Fund, an investment management firm, has published its third-quarter 2022 investor letter – a copy of which can be downloaded here. In its Q3 2022 investor letter, the fund noted that investors may have different expectations about inflation, interest rates, or economic growth, but, at the end of the day, what we buy will determine the portfolio’s return (and its risk). The fund also said that the need for capital investment in the long term is, and will likely remain, higher than expected. Try to take some time to review the top 5 fund holdings so you can get an idea about their best stock picks this 2022.
In its Q3 2022 investor letter, Vltava Fund mentioned Berkshire Hathaway Inc. (NYSE:BRK-A) and explained its insights for the company. Founded in 1839, Berkshire Hathaway Inc. (NYSE:BRK-A) is a multinational conglomerate company based in Omaha, Nebraska with a $589.2 billion market capitalization. Berkshire Hathaway Inc. (NYSE:BRK-A) delivered -10.58% return since the beginning of the year, while its 12-month returns decreased -4.73%. The stock closed at $403,000.00 per share on October 10, 2022.
Here’s what the Vltava Fund has to say about Berkshire Hathaway Inc. (NYSE:BRK-A) in its Q3 2022 investor letter:
“Berkshire Hathaway our oldest position. We held it for almost 11 years, and it was our largest position for most of that time. We’ve told you so much about Berkshire over the years that it’s hard not to repeat ourselves.
BRK is our main investment, and I would describe our view of the company this way: If I had to invest all my money in one stock and I couldn’t hold it for 5–10 years, I would choose BRK without any hesitation. It is a conglomerate made up of individual investments whose quality is above average, with capital allocation efficiency far above average, having a very strong balance sheet, and with very low business risk.
All this comes at a valuation that is below the market average. BRK’s revenue power, whose determination requires a thorough understanding of its business and minimal manual labor, is just north of USD 50 billion a year. Therefore, the entire company, with its market capitalization of USD 590 billion, trades at less than 12 times annual earnings. It is very realistic to expect BRK’s stock price to grow at an average rate of around 10% per year over the long term…” (Click here to view full text)
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Our calculations show that Berkshire Hathaway Inc. (NYSE:BRK-A) ranks 11th on our list of 30 Most Popular Stocks in Hedge Funds. Berkshire Hathaway Inc. (NYSE:BRK-A) was in 109 hedge fund portfolios at the end of the third quarter of 2022, compared to 104 funds in the previous quarter. Berkshire Hathaway Inc. (NYSE:BRK-A) has delivered a -3.57% return over the past 3 months. We also share the views of another hedge fund in Berkshire Hathaway Inc. (NYSE:BRK-A) on another article. You can find other investor letters from hedge funds and prominent investors in our hedge fund investor letters 2022 Q3 page.
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Disclosure: None. This article was originally published on Insider Monkey.