U-Haul Holding Company (UHAL.B): Among Billionaire David Abrams' Stock Picks with Huge Upside Potential
We recently published a list of Billionaire David Abrams' 10 Stock Picks with Huge Upside Potential. In this article, we are going to take a look at where U-Haul Holding Company (NYSE:UHAL.B) stands against other stock picks with huge upside potential.
David Abrams founded Abrams Capital Management in 1999. Before forming the Boston-based investment firm, Abrams worked at Seth Klarman's Baupost Group for 10 years. He graduated from the University of Pennsylvania with a BA degree in History, where he also served on the Board of Advisors of the College of Arts and Sciences. Abrams didn't have a finance background when he got his first job in New York in the early 1980s. He learned all about investing under Seth Klarman before setting out independently after a decade. He is a value investor, and in the ~12 years of his fund, he has achieved an annualized return of around 20%. His firm is like a one-man shop, which employs a small staff. Abrams Capital has 9 clients and discretionary assets under management (AUM) of $10.05 billion, as reported in the firm's Form ADV dated 13 January 2025. The last reported 13F filing for Q4 2024 included $6.22 billion in managed 13F securities and a top 10 holdings concentration of 98.7%.
Abrams is known for maintaining a low public profile, but in a conversation on Columbia Business School's 'Value Investing with Legends' Podcast series, he discussed the surface of his foundational principles when it comes to his investment philosophy. He starts by looking at the risks first and foremost, without any consideration of prospective gains. This is a reminder that the future remains unpredictable, which Abrams puts in the following words:
'When you look back, there's one path that happened, but that doesn't mean that going forward there's only one path. In the future, there's multiple paths.'
Abrams' portfolio reflects a balanced approach with exposure to growth sectors like Industrials and Consumer Cyclical, while also maintaining moderate allocations in established industries such as Communication Services. He also believes that declining industries can present stability because they attract limited new entrants. This also implies that high-growth sectors are, on the contrary, characterized by intense competition, which necessitates a more detailed analysis of potential competitive threats. Here's what Abrams had to say about this:
'If you have a shrinking industry and it's dying, it's like, people are not dying to get into that.'
Abrams serves as a director of several private companies. He is currently on the board of MITMCO, which manages the MIT endowment. Previously, he was a trustee of Berklee College of Music for 15 years, where he chaired the investment committee. He was also the trustee of Milton Academy.
To compile the list of billionaire David Abrams' 10 stock picks with huge upside potential, we sifted through Q4 2024 13F filings of Abrams Capital Management from Insider Monkey. From these filings, we checked each stock's upside potential from CNN and ranked the stocks in ascending order of this upside potential. We have also added Abrams Capital Management's stake in each stock as well as the broader hedge fund sentiment for it.
Note: All data was sourced on May 8.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A line of rental trucks, trailers and portable units parked at a self-storage facility.
Abrams Capital Management's Stake: $208.26 million
Number of Hedge Fund Holders: 30
Average Upside Potential as of May 8: 80%
U-Haul Holding Company (NYSE:UHAL.B) operates as a DIY moving and storage operator for household and commercial goods in the US and Canada. The company's Moving and Storage segment rents trucks, trailers, portable moving & storage units, specialty rental items, and self-storage spaces to household movers. It also sells moving supplies, towing accessories, and propane.
U-Haul's Equipment Rental segment generated a $39 million increase in revenue in FQ3 2025, which represented a growth of ~4.5% year-over-year. This improvement surpassed the 1.5% and 1.7% increases seen in FQ1 and FQ2 of the same fiscal year. The growth in equipment rental revenue was driven by continued strength in average revenue per transaction, an increase in In-Town transactions, and additional last-mile revenue towards the end of the quarter.
U-Haul Holding Company (NYSE:UHAL.B) also made capital expenditures for new rental equipment, which totaled $1.587 billion for the first 9 months of the fiscal year. This was a $237 million increase year-over-year. While proceeds from the sale of retired equipment decreased by $73 million to $521 million due to selling fewer units and lower average sales prices, the company is managing its fleet by adding and deleting trucks to correct imbalances caused by previous supply chain disruptions.
Overall, UHAL.B ranks 2nd on our list of billionaire David Abrams' stock picks with huge upside potential. While we acknowledge the potential of UHAL.B, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than UHAL.B but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
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