While you might never become a billionaire, you can certainly invest in top stocks billionaires are buying thanks to the wonderful combination of free Internet and Form 13F disclosures (as mandated by the U.S. Securities and Exchange Commission).
Now, to be clear, just because you’re buying billionaires’ favorite stocks doesn’t necessarily guarantee success. You must always keep in mind that the ultra-wealthy play by a different set of rules. To these top-tier powerbrokers, losing a few million on trades might not seem like much. However, to most regular folks, that would be absolutely crippling.
Still, what I do appreciate about top stocks billionaires load up on is that the rich didn’t get this way because they had a penchant for losing money. No, these folks aim to go to the “big dance” every time. And with those handy 13F disclosures, you might be able to get a piece of the pie.
On that compelling note, below are the top stocks billionaires are buying.
Apple (AAPL)
Representing easily one of the most popular consumer technology brands in the world, Apple (NASDAQ:AAPL) requires no introduction. Because of its prominence, it’s no surprise that AAPL ranks among the top stocks billionaires are buying. In the second quarter, Berkshire Hathaway (NYSE:BRK-B) – led by CEO Warren Buffett – acquired $3.01 billion worth of shares, per HedgeFollow.
According to data from Stockcircle, Apple represents 49.27% of Berkshire’s equity portfolio. It’s also the conglomerate’s biggest holding. Further, the Oracle of Omaha loves the tech giant. As Barron’s stated, Buffett appreciates that Apple keeps repurchasing stock and thereby increasing Berkshire’s percentage ownership with no effort on the latter entity’s part.
To be fair, Apple isn’t a perfect idea among billionaires’ favorite stocks. Several days ago, the semiconductor space fell sharply because of concerns associated with fading smartphone demand. Still, in the long run, Apple’s brand power should resonate with the market. Therefore, it’s a reasonably comfortable buy.
Amazon (AMZN)
An e-commerce enterprise that quickly evolved into a tech behemoth, Amazon (NASDAQ:AMZN) carries a controversial profile. Basically, it’s a giant vacuum cleaner, sucking the life out of mom-and-pop businesses. Then again, that “quality” might make AMZN an idea play among the top stocks billionaires are buying. In particular, AMZN caught the eye of JPMorgan Chase (NYSE:JPM).
Per data compiled by HedgeFollow, the big bank acquired $1.9 billion worth of shares during Q2. Overall, the total value bought among all investors during the aforementioned period came out to $26.44 billion. Of course, JPMorgan is led by billionaire business executive Jamie Dimon.
Interestingly, Dimon calls Amazon a “business miracle,” according to a CNN report. As well, the banker enjoys a long relationship with Jeff Bezos, Amazon’s founder, Executive Chairman, and former president and CEO.
Financially, AMZN runs a little hot in terms of earnings multiples. However, the company remains a growth machine after all this time, posting a three-year revenue growth rate of 21.9%. Thus, it’s one of the top stocks billionaires load up on.
Alphabet (GOOG, GOOGL)
If there’s any one enterprise that we all couldn’t live without, it might be Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL). Politically and ideologically, a good many of us are skeptical about the tech stalwart’s unparalleled influence. At the same time, this gargantuan footprint makes GOOG one of the top stocks billionaires are buying.
In particular, Dan Loeb of Third Point has been a huge believer in Alphabet and its Google ecosystem. According to Loeb’s latest 13F disclosure, the Internet giant represents 8.06% of Third Point’s holdings, amounting to 4.75 million shares owned.
Currently, GOOG trades at a slightly worse-than-average premium relative to both trailing and forward earnings multiples. However, based on its 10-year discounted cash flow (DCF) model, GOOG could be undervalued. Per investment data aggregator Gurufocus, GOOG’s fair value stands at $147.50, implying a margin of safety of 12.71%. In addition, Alphabet continues to be a growth machine, printing a three-year sales expansion rate of 22.9%. Therefore, it’s a strong idea for billionaires’ favorite stocks.
GE HealthCare (GEHC)
Spun off from industrial conglomerate General Electric (NYSE:GE) early this year, GE HealthCare (NASDAQ:GEHC) is a multinational medical technology firm. Per its website, the enterprise represents a leader in precision care, infusing innovation with patient-focused technologies to facilitate better care. What’s more, GEHC enjoyed a strong debut so far, gaining nearly 36% of equity value.
Backing GE HealthCare is the billionaire Chairman and CEO of BlackRock (NYSE:BLK) Larry Fink. During Q2, BlackRock acquired $1.88 billion worth of GEHC stock. Overall, institutional investors acquired just over $22 billion of the GE spinoff.
Even more interesting, data from Gurufocus shows that GEHC could be undervalued. Right now, shares trade hands at 20.53x trailing earnings, below the sector median of 26.8x. Also, the market prices GEHC at 20.04x forward earnings, below the sector median of 24.51x. In addition, the company enjoys strong profit margins, particularly a trailing-year net margin of 9.62%. Therefore, it’s a reasonable idea for top stocks billionaires are buying.
Microsoft (MSFT)
A powerhouse technology giant specializing in both software applications and compelling hardware, Microsoft (NASDAQ:MSFT) arguably makes sense in any context. It’s good to know that the top dogs also feel the same. Easily ranking among the top stocks billionaires are buying, Microsoft saw tremendous buying activity in Q2. Overall, institutional investors poured in $32.4 billion during the three months ended June 30.
In particular, Chase Coleman III from Tiger Global Management continues to be a strong billionaire supporter of MSFT. According to the latest 13F disclosure, MSFT represents Tiger’s biggest holding at 15.57% of its portfolio. This figure translates to 5.93 million shares of the tech giant. As well, during Q2, Tiger acquired over 674,000 shares.
Moving forward, I expect great things from Microsoft. As you know, the company entered into a partnership with OpenAI, the creator of the ChatGPT chatbot. With artificial intelligence becoming a prominent element in society, MSFT should rise higher after it works out its near-term funk. Thus, it’s one of the top stocks billionaires load up on.
Salesforce (CRM)
A cloud-based software enterprise, Salesforce (NYSE:CRM) specializes in customer relationship management software and applications; hence, its ticker symbol. Mainly, the company focuses on sales, customer service, marketing automation, e-commerce, analytics, and application development. It’s been a rough period since 2022’s interest rate hike campaign. Still, shares are flying right now, gaining 60% since the January opener.
Under this context, it’s perhaps not surprising that CRM represents one of the top stocks billionaires are buying. Indeed, Stephen Mandel of Lone Pine Capital is a huge fan. Interestingly, Lone Pine went on a divesting spree, heavily trimming exposure to securities across its portfolio. However, CRM ranked among major portfolio acquisitions, with the firm increasing its holdings by nearly 271%.
Financially, CRM trades at a hefty premium to trailing earnings. And it’s not exactly cheap on a forward earnings basis. However, the company benefits from a solid three-year revenue growth rate of 16.1%. Thus, CRM is one of the billionaires’ favorite stocks.
Nvidia (NVDA)
Although a well-respected and powerful name in the broader semiconductor business, Nvidia (NASDAQ:NVDA) right now cuts a controversial figure. No, it’s a fine enterprise. However, investors may be pricing NVDA at a level that’s not reasonable based on credible expectations. For example, NVDA presently trades at trailing earnings multiple of nearly 232. Shares also trade at 60X forward earnings.
Adding some consternation, while shares gained over 200% this year, momentum may be fading. In the trailing five sessions ending Aug. 3, NVDA lost almost 5% of equity value. Nevertheless, the tech giant continues to rank among the top stocks billionaires are buying.
Per the latest 13F disclosure, Philippe Laffont of Coatue Management remains a believer in Nvidia. Presently, NVDA represents 9.2% of Coatue’s portfolio, translating to 4.98 million shares owned. Further, in Q2, the investment firm increased its exposure by 7.36%.
Frankly, Nvidia is one of the toughest calls for billionaires’ favorite stocks. Still, with a three-year revenue growth rate of 34.5%, the prospects certainly entice speculators.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
