Berkshire Hathaway (BRK-B) And Vltava Fund’s Investment Approach

1 week ago 3

Soumya Eswaran

Mon, Apr 7, 2025, 6:05 AM 4 min read

Vltava Fund, an concern absorption company, precocious released its first-quarter 2025 capitalist letter. A transcript of the missive tin beryllium downloaded here. The missive contemplated whether the banal marketplace is simply a casino. The writer emphasized that the banal marketplace is not a casino, and investors indispensable not dainty it arsenic specified to execute amended returns. The inclination shows that a increasing fig of radical person precocious started to presumption banal marketplace trading arsenic gambling. However, the steadfast believes that stocks are the champion semipermanent investment. In the archetypal quarter, markets were some absorbing and volatile owed to respective factors. The money has been successful beingness for 21 years and has ne'er engaged successful banal trading solely owed to governmental changes. The money believes that it is captious to absorption connected selecting companies with semipermanent worth maturation and beardown shareholder-focused management, erstwhile the governmental changes impact the system and firm profitability. In addition, delight cheque the fund’s apical 5 holdings to cognize its champion picks successful 2025.

In its archetypal 4th 2025 capitalist letter, Vltava Fund emphasized stocks specified arsenic Berkshire Hathaway Inc. (NYSE:BRK-B). Berkshire Hathaway Inc. (NYSE:BRK-B) engages successful insurance, freight obstruction transportation, and inferior businesses. The one-month instrumentality of Berkshire Hathaway Inc. (NYSE:BRK-B) was -0.72%, and its shares gained 18.65% of their worth implicit the past 52 weeks. On April 4, 2025, Berkshire Hathaway Inc. (NYSE:BRK-B) banal closed astatine $493.54 per stock with a marketplace capitalization of $1.066 trillion.

Vltava Fund stated the pursuing regarding Berkshire Hathaway Inc. (NYSE:BRK-B) successful its Q1 2025 capitalist letter:

"Our oldest and longest-held presumption successful our portfolio is Berkshire Hathaway Inc. (NYSE:BRK-B). When we included it into the portfolio much than 13 years ago, successful January 2012, the banal was priced astatine $119,000. Book worth per stock astatine that clip was astir $100,000. By the extremity of 2024, the publication worth per stock was astir $446,000. The publication worth has truthful accrued by astir 3.5 times successful 13 years. How did this happen? Berkshire generates a nett each twelvemonth done its businesses. The nett generated increases the company’s equity and the magnitude of superior disposable to it. The superior is reinvested again and again into the company’s businesses. As the magnitude of superior invested increases, the implicit magnitude of returns grows and the full process accelerates arsenic clip goes on. At the aforesaid time, the magnitude of superior attributable to each Berkshire stock that we ain successful the Vltava Fund besides grows. The stock terms has gradually reflected this development, rising from an archetypal $119,000 to $680,000 by the extremity of 2024.