Berkshire Hathaway Inc. (NYSE:BRK-B) stock surged in the first quarter of 2025, according to Diamond Hill Large Cap Fund’s investor letter. The investment management company highlighted Berkshire Hathaway as one of the top contributors to its portfolio’s performance in Q1.
The fund stated that Berkshire Hathaway benefited from improved results at its subsidiary GEICO, which generated better underwriting outcomes, policy growth, and a lower expense ratio compared to its peers. Diamond Hill Large Cap Fund also noted that Berkshire Hathaway’s substantial excess capital provides ample opportunities for further investments and capital allocation in the future.
Top contributor boosts performance
Berkshire Hathaway’s stock gained 24.68% over the last 52 weeks, and its one-month return was -1.98%. The company’s shares closed at $531.64 on May 9, 2025, with a market capitalization of $1.147 trillion. According to the investment firm’s database, 131 hedge fund portfolios held Berkshire Hathaway stock at the end of the fourth quarter, an increase from 120 in the previous quarter.
This suggests growing interest in the company among institutional investors. While Diamond Hill Large Cap Fund acknowledges Berkshire Hathaway’s potential as an investment, it believes that AI stocks may offer higher returns within a shorter timeframe. The firm encourages investors to explore AI stocks that trade at attractive valuations relative to their earnings potential.
