Warren Buffett Disciple Seth Klarman Differs With Mentor On This Magnificent Seven Stock: One Is Buying, One Is Selling
Seth Klarman‘s hedge fund, Baupost Group, revealed several new stock positions in the fourth quarter and multiple changes to the fund's investment portfolio.
Here's a look at the new positions as of Dec. 31.
New Positions
In the fourth quarter, Baupost took new stakes in several companies. Here are the new stock positions listed below:
- Amazon.com Inc (NASDAQ:AMZN): 2,121,391 shares
- Molina Health (NYSE:MOH): 625,000 shares
- Grupo Aeromexico: 4,855,180 shares
Based on the new filings, Amazon is the fund’s second-largest holding at the end of the fourth quarter at 9.3% of assets.
Klarman is known to follow Warren Buffett‘s value-investing principles. However, the two investors differ on their bullishness for Amazon. Klarman is buying into the e-commerce and cloud powerhouse, while Buffett is selling.
Berkshire Hathaway (NYSE:BRK)(NYSE:BRK) lowered its stake in Amazon in Q4 from 10 million shares to 2.276 million shares, down 77% from the third quarter. Outside fully exited positions by Berkshire Hathaway in Q4, Amazon was the largest decrease in the investment portfolio.
Amazon was the worst-performing Magnificent Seven stock in 2025, and the fourth-quarter bet could have been based on value and the stock's growth in its cloud segment, a value metric Klarman may have viewed.
Time will tell whether Buffett or Klarman is right about Amazon stock in 2026, with one reducing their exposure and the other making the stock a top holding.
Exited Positions, Changes to Positions
In the fourth quarter, Baupost exited one position and made several changes to its existing positions.
Baupost completely exited these positions in the fourth quarter, as reported by 13finfo:
Here were the stocks with the largest increases in the fourth quarter, ranked by the percentage change in shares:
- Fiserv Inc (NASDAQ:FISV): +146%
- Eagle Materials (NYSE:EXP): +26%
- Willis Towers Watson (NASDAQ:WTW): +25%
- Herbalife (NYSE:HLF): +19%
- Fidelity National Information Services (NYSE:FIS): +19%
Here were the stocks with the largest decreases in Q4, ranked by the percentage change in shares:
- CRH Plc (NYSE:CRH): -68%
- Liberty Global (NASDAQ:LBTYA): -59%
- Tamboran Resources (NYSE:TBN): -55%
- Alphabet Class C (NASDAQ:GOOG): -41%
- Dollar General (NYSE:DG): -23%
Top Baupost Group Holdings
Here are the top holdings in the fund overall, as of Dec. 31:
- Restaurant Brands International (NYSE:QSR): 10%
- Amazon.com Inc: 9.3%
- Willis Towers Watson: 8.5%
- Elevance Health (NYSE:ELV): 8.4%
- Union Pacific (NYSE:UNP): 7.1%
Restaurant Brands International also ranked first at the end of the third quarter and is one of the three stocks (Willis Towers Watson, Elevance Health) to be in the top five holdings in both Q3 and Q4.
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