Hedge fund giants Dan Loeb and John Paulson recently bought shares of Verizon (NYSE:VZ) along with Warren Buffett's Berkshire Hathaway. Buffett made the biggest splash, buying 11 million shares worth over $500 million, likely because he sees value in the stock and a competitive moat for Verizon's business.

Verizon Wireless has a huge competitive moat in the U.S. wireless business, investing billions of dollars in spectrum and its network, something that's nearly impossible for competitors to replicate. Combined with AT&T (NYSE:T), the duopoly in U.S. wireless means high margins and little competition. Plus, Verizon's stock is a good value at 11 times trailing earnings and paying a 4.3% dividend yield. 

In the video below, specialist Travis Hoium covers why he thinks Verizon is a great stock and why it makes a great investment in a basket with AT&T. 

Travis Hoium manages an account that owns shares of AT&T; and Verizon Communications. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.