Latest news with #VltavaFund
Yahoo
2 days ago
- Business
- Yahoo
Jim Cramer Says Williams-Sonoma's CEO 'Moved a Ton of Manufacturing to Vietnam'
Williams-Sonoma, Inc. (NYSE:WSM) is one of the 22 stocks Jim Cramer recently talked about. Coming to the company, Cramer stated: 'Laura Alber, CEO of Williams-Sonoma, moved a ton of manufacturing to Vietnam. Her stock's down more than 6% for the year, intriguing. [It] jumped more than 2% on the tariff news, but that's nothing.' An interior of a modern home with a wide selection of cookware, tools and cutlery on display. Williams-Sonoma (NYSE:WSM) sells a wide range of home products, including cookware, furniture, decor, and personalized items, through both digital and physical retail channels. Additionally, the company operates a 3-D imaging and augmented reality platform for home design. Vltava Fund stated the following regarding Williams-Sonoma, Inc. (NYSE:WSM) in its Q1 2025 investor letter: 'We sold the rest of the Williams-Sonoma, Inc. (NYSE:WSM) stock. This was a very profitable investment for us. How do we evaluate its feedback? We did not hold the stock for very long, only about 3-1/2 years. During that time, the stock price moved from less than $50 to more than $200. In the beginning, we could buy the shares at single digit earnings multiples. The stock price was well below our estimate of the company's value. The business itself is of very high quality, with high returns on capital, no debt, and an exemplary asset allocation. As such, we see the purchase itself as a good move and entirely in line with our investment philosophy. When we sold the shares, they were trading at about 25 times earnings. This was significantly higher than our current estimate of the company's value. Any company, however good and promising it may appear, is a good investment at a low price but a poor investment at a high price. We are always reminded of this and therefore we sold the WSM shares. So far, we see this also as a good move and entirely consistent with our investment philosophy. At the same time, however, we are aware that the large total return on this investment was only partly the result of our transactions and analysis. Luck also played a large part. We expected that WSM would do well in its business. This was confirmed, and the shares also had been objectively very cheap when we bought them. However, all of this falls far short of justifying the rapid quadrupling of the share price. We therefore do not succumb to the temptation to attribute more to our own skills than is prudent. It remains important for us to stick to our investment philosophy and investment process in our stock selection and individual transactions. On average and over the longer term, they should continue to bring us solid returns, although in individual cases or over shorter periods they may deliver returns both much better than they deserve and much poorer than they deserve.' While we acknowledge the potential of WSM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None.
Yahoo
07-04-2025
- Business
- Yahoo
Berkshire Hathaway (BRK-B) And Vltava Fund's Investment Approach
Vltava Fund, an investment management company, recently released its first-quarter 2025 investor letter. A copy of the letter can be downloaded here. The letter contemplated whether the stock market is a casino. The author emphasized that the stock market is not a casino, and investors must not treat it as such to achieve better returns. The trend shows that a growing number of people have recently started to view stock market trading as gambling. However, the firm believes that stocks are the best long-term investment. In the first quarter, markets were both interesting and volatile due to several factors. The fund has been in existence for 21 years and has never engaged in stock trading solely due to political changes. The fund believes that it is vital to focus on selecting companies with long-term value growth and strong shareholder-focused management, when the political changes affect the economy and corporate profitability. In addition, please check the fund's top five holdings to know its best picks in 2025. In its first quarter 2025 investor letter, Vltava Fund emphasized stocks such as Berkshire Hathaway Inc. (NYSE:BRK-B). Berkshire Hathaway Inc. (NYSE:BRK-B) engages in insurance, freight rail transportation, and utility businesses. The one-month return of Berkshire Hathaway Inc. (NYSE:BRK-B) was -0.72%, and its shares gained 18.65% of their value over the last 52 weeks. On April 4, 2025, Berkshire Hathaway Inc. (NYSE:BRK-B) stock closed at $493.54 per share with a market capitalization of $1.066 trillion. Vltava Fund stated the following regarding Berkshire Hathaway Inc. (NYSE:BRK-B) in its Q1 2025 investor letter: "Our oldest and longest-held position in our portfolio is Berkshire Hathaway Inc. (NYSE:BRK-B). When we included it into the portfolio more than 13 years ago, in January 2012, the stock was priced at $119,000. Book value per share at that time was approximately $100,000. By the end of 2024, the book value per share was approximately $446,000. The book value has therefore increased by almost 3.5 times in 13 years. How did this happen? Berkshire generates a profit every year through its businesses. The profit generated increases the company's equity and the amount of capital available to it. The capital is reinvested again and again into the company's businesses. As the amount of capital invested increases, the absolute amount of returns grows and the entire process accelerates as time goes on. At the same time, the amount of capital attributable to each Berkshire share that we own in the Vltava Fund also grows. The share price has gradually reflected this development, rising from an initial $119,000 to $680,000 by the end of 2024. A team of insurance professionals in a boardroom overlooking a city skyline. Berkshire Hathaway Inc. (NYSE:BRK-B) is in 15th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 131 hedge fund portfolios held Berkshire Hathaway Inc. (NYSE:BRK-B) at the end of the fourth quarter which was 120 in the previous quarter. While we acknowledge the potential of Berkshire Hathaway Inc. (NYSE:BRK-B) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. We covered Berkshire Hathaway Inc. (NYSE:BRK-B) in another article, where we shared the list of debt-free halal stocks to invest in. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
07-04-2025
- Business
- Yahoo
Is United Rentals (URI) Trading at Attractive Price?
Vltava Fund, an investment management company, recently released its first-quarter 2025 investor letter. A copy of the letter can be downloaded here. The letter contemplated whether the stock market is a casino. The author emphasized that the stock market is not a casino, and investors must not treat it as such to achieve better returns. The trend shows that a growing number of people have recently started to view stock market trading as gambling. However, the firm believes that stocks are the best long-term investment. In the first quarter, markets were both interesting and volatile due to several factors. The fund has been in existence for 21 years and has never engaged in stock trading solely due to political changes. The fund believes that it is vital to focus on selecting companies with long-term value growth and strong shareholder-focused management, when the political changes affect the economy and corporate profitability. In addition, please check the fund's top five holdings to know its best picks in 2025. In its first quarter 2025 investor letter, Vltava Fund emphasized stocks such as United Rentals, Inc. (NYSE:URI). Headquartered in Stamford, Connecticut, United Rentals, Inc. (NYSE:URI) is an equipment rental company. The one-month return of United Rentals, Inc. (NYSE:URI) was -5.87%, and its shares lost 19.69% of their value over the last 52 weeks. On April 4, 2025, United Rentals, Inc. (NYSE:URI) stock closed at $564.57 per share with a market capitalization of $36.885 billion. Vltava Fund stated the following regarding United Rentals, Inc. (NYSE:URI) in its Q1 2025 investor letter: "After almost a half year since our last new purchase, we have a new addition to the portfolio. It is the stock of United Rentals, Inc. (NYSE:URI). This marks one of those cases of companies we have followed for years through various economic and investment cycles. Now, we have reached a stage where we believe we have a sufficient understanding of both the company itself and the nature and dynamics of the sector within which it operates. At the same time, we find the share price attractive. What does URI do? United Rentals is the largest equipment rental company in the world. It operates throughout the United States and Canada and has smaller operations in Europe, Australia, and New Zealand. URI operates in two segments. The General Rentals segment rents general construction and industrial equipment, which encompasses vehicles, excavators, loaders, forklifts, earthmoving and material handling equipment, aerial work platforms that include boom trucks and aerial lifts, as well as general tools and light equipment including pressure washers, water pumps, and power tools for construction and industrial companies, mobile storage facilities, and the like. The Specialty segment rents excavation safety equipment for trenching, scaffolding, equipment for power, heating, ventilation, and air conditioning, such as portable diesel generators, power distribution and temperature control equipment, fluid solution and fluid containment, transport, and treatment equipment, surface protection plates, mobile storage equipment, and modular office spaces…' (Click here to the read the full text) A construction crew working in the field with earthmoving equipment illuminated by a setting sun. United Rentals, Inc. (NYSE:URI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 58 hedge fund portfolios held United Rentals, Inc. (NYSE:URI) at the end of the fourth quarter which was 45 in the previous quarter. United Rentals, Inc.'s (NYSE:URI) revenue grew 9.8% year-over-year to almost $4.1 billion. While we acknowledge the potential of United Rentals, Inc. (NYSE:URI) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. We covered United Rentals, Inc. (NYSE:URI) in another article, where we shared the list of stocks on Jim Cramer's radar. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
