Let’s face it; investing has us often peeking over the proverbial fence to see where the grass might be greener. Many gold standards of “green” can be found by tracking stocks billionaires are buying. With the power of the Internet and mandated Form 13F disclosures, anyone can delve into the top stocks to buy what billionaire are favoring. While diving into billionaire stocks may sound like a golden ticket, it comes with its caveats. Sure, billionaires might shrug off a few million lost in trades, but for the average investor, such a scenario is far from palatable. Yet, it’s essential to note that the wealthy didn’t amass their fortunes by being frivolous. They’ve historically had an eye for winning, which makes stocks favored by billionaires intriguing.
Apple (AAPL)
Hedge Funds Total Value Bought (since the start of second-quarter 2023: 13F, 13D/13G filings): $44.6 billion
Throughout the years, Apple (NASDAQ:AAPL) has proven to be the apple of many billionaire investors’ eyes. Its innovative products, robust business model, and growing stock have made it a treasured pick in the portfolios of the world’s financial elites. From visionary investors such as Warren Buffett to tech-savvy venture capitalists, many have bitten into Apple’s success story.
The company is known for the iconic iPhone, but it has diversified into various other products and services that continue to generate growing cash flows. One thing that Apple has — and its competitors don’t have — is customer loyalty. The loyal and satisfied customer base is the company’s strength, and consumers are ready to pay a premium for its products.
The company rewards its shareholders through share buybacks and dividends. It has a dividend yield north of 0.5% and has recently paid a quarterly dividend of 24 cents. In the last quarter, it returned $24 billion to shareholders and has increased its dividend each year since 2013.
As always, AAPL stock was a hit with billionaire investors in the most recent quarter. Paul Tudor Jones and Jim Simons, two of the most powerful investors, increased their stakes in the company by more than triple-digit margins.
Amazon (AMZN)
Hedge Funds Total Value Bought (since the start of second-quarter 2023: 13F, 13D/13G filings): $32.5 billion
Once an eCommerce pure-play, Amazon (NASDAQ:AMZN) has become our era’s tech titan. Braving new challenges, the company showcased spectacular second-quarter results, surpassing EPS and revenue predictions. Amazon Web Services (AWS) wasn’t far behind either, surprising markets with its booming revenues. The firm’s second-quarter showing marked Amazon’s grandest earnings beat since the final quarter of 2020, a feat attributed to its disciplined cost management strategies.
Speaking of trust in this tech juggernaut, JPMorgan Chase (NYSE:JPM), steered by billionaire Jamie Dimon, placed a whopping $1.9 billion bet on Amazon. Furthermore, billionaire bigwigs such as George Soros, Mario Gabelli, and Louis Moore Bacon weren’t left behind, growing their stake by 8.8%, 3.8%, and 454.3%, respectively, in the second quarter, signaling its bullish sentiment on the tech titan’s future.
Microsoft (MSFT)
Hedge Funds Total Value Bought (since the start of second-quarter 2023: 13F, 13D/13G filings): $43.9 billion
In a landscape where many tech giants scramble for supremacy, Microsoft (NASDAQ:MSFT) has effectively carved out its niche with an authoritative footing in pivotal sectors such as the cloud, AI, cybersecurity, and gaming. The company’s CEO, Satya Nadella, isn’t resting on past laurels, either, aiming for future financial windfalls.
Last quarter’s figures shine a spotlight on this trajectory. While Microsoft breezed past second-quarter earnings estimates, posting an EPS of $2.69 and revenue of $56.19 billion, the stock took a surprising 4% dip, mainly attributed to a less-than-stellar sales forecast. Yet, it’s hard to overlook the company’s roaring financial engine. An impressive jump in operating income swelled to $24 billion, accounting for a whopping 43% of sales. Microsoft remains a beacon of resilience for those with an eye on the tech horizon.
Regarding resilience, multiple billionaires and their investment firms loaded up on MSFT stock in the second quarter. Paul Tudor Jones, Louis Moore Bacon, and Jim Simons increased their stake in the stock by double-digit margins.
On the date of publication, Muslim Farooque 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.
