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Vltava Wants Berkshire (BRK-A)’s Share Price to Remain as Low as Possible for as Long as Possible

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Jose Karlo Mari Tottoc
·3 min read
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Vltava Fund, an investment management firm, published its first quarter 2021 investor letter – a copy of which can be downloaded here. Vltava Fund’s NAV jumped over the next 365 days (23 March 2020 – 23 March 2021) almost by 90%. The Vltava Fund portfolio as a whole had a P/E of 12.7 at the end of March, ROE (return on equity) of 20%, and dividend yield adjusted for share buybacks of 3.7%. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.

Vltava Fund, in their Q1 2021 investor letter, mentioned Warren Buffett's Berkshire Hathaway Inc. (NYSE: BRK-A) and shared their insights on the company. Berkshire Hathaway Inc. is an Omaha, Nebraska-based multinational conglomerate company that currently has a $611 billion market capitalization. Since the beginning of the year, BRK-A delivered a 15.00% return, extending its 12-month gains to 37.69%. As of April 09, 2021, the stock closed at $400,000.00 per share.

Here is what Vltava Fund has to say about Berkshire Hathaway Inc. in their Q4 2020 investor letter:

"Despite the considerable rise in stock markets over the past year, there are still many attractive opportunities. Human nature also is playing a bit into our hands. Investor crowds often chase popular stocks, hot IPOs, or mysterious SPACs and completely leave aside stocks they consider boring and not sexy enough. A typical example of this category is our long-term largest position in Berkshire Hathaway. Since we bought it for the first time, its price has nearly quadrupled and yet it remains just as undervalued today as it was at that time. Considering the current rate at which it is buying back its own shares and the amount of cash that Berkshire Hathaway has, my greatest wish as a shareholder is for the company’s share price to remain as low as possible for as long as possible."

Pixabay/Public Domain

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 13.62% 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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Disclosure: None. This article is originally published at Insider Monkey.