Davis Funds, an investment management firm, published its “Davis New York Venture Fund” fourth quarter 2020 investor letter – a copy of which can be downloaded here. A return of 6.12% was recorded by the fund’s Class A shares for the year end of 2020. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.
Davis New York Venture Fund, in their Q4 2020 investor letter, mentioned Berkshire Hathaway Inc. (NYSE: BRK-A) and shared their insights on the company. Berkshire Hathaway Inc. is a Omaha, Nebraska-based conglomerate holding company that currently has a $605.1 billion market capitalization. Since the beginning of the year, BRK-A delivered a 14.11% return, impressively extending its 12-month gains to 38.29%. As of April 06, 2021, the stock closed at $396,900.00 per share.
Here is what Davis New York Venture Fund has to say about Berkshire Hathaway Inc. in their Q4 2020 investor letter:
“Our attention within the value part of the market remains steadfastly focused on finding companies that combine strength and resiliency with long-term growth, profitability and competitive advantages. In today’s uncertain economy, we believe we have found such businesses trading at bargain prices in two sectors: industrials and financials. In the industrial space, concerns about the impact of the economic downturn on short-term profitability led to a wave of selling in a select group of leaders with durable competitive advantages, long records of profitability and bright long-term prospects. Companies like Berkshire Hathaway is a wonderful example of an attractive investment in this sector.”
Our calculations show that Berkshire Hathaway Inc. (NYSE: BRK-A) does not belong in our list of the 30 Most Popular Stocks Among Hedge Funds. As of the end of the fourth quarter of 2020, Berkshire Hathaway Inc. was in 110 hedge fund portfolios, compared to 109 funds in the third quarter. BRK-A delivered a 14.65% return in the past 3 months.
The top 10 stocks among hedge funds returned 231.2% between 2015 and 2020, and outperformed the S&P 500 Index ETFs by more than 126 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Here you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.
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