As I’ve noted in past columns, many investors may want to emulate the stock picks of billionaires because they have obviously been successful at selecting good stocks and often have access to better experts and more information than retail stock pickers. This has led to this list of stocks that billionaires love.
Moreover, the stock market is entering “rally mode” as investors become more convinced that inflation is easing. At the same time, high interest rates won’t be a massive problem for companies and the economy in the medium and long term.
As a result, this is an excellent time for retail investors to load up on the stocks that billionaires love.
Microsoft (MSFT)
At least three billionaires bought large amounts of Microsoft (NASDAQ:MSFT) stock last quarter. Point72 Asset Management, owned by billionaire investor Steve Cohen, increased its stake in MSFT by 11% to 2.03 million shares in the third quarter.
Citadel Advisors was even more enthusiastic about MSFT stock, owned by billionaire investor Ken Griffin. The latter hedge fund raised its stake in the software giant by 48% to 5.037 million shares last quarter.
Further, Appaloosa, the hedge fund owned by billionaire David Tepper, ended Q3 with 1.64 million shares of MSFT, up from 1.24 million at the end of Q2.
Given these significant acquisitions, it’s clear that MSFT is one of the stocks that billionaires love.
Also noteworthy is that JPMorgan (NYSE:JPM), America’s largest bank, increased the number of shares of MSFT that it owns by 3.17% last quarter, bringing its total ownership of the name to a massive 116.6 million shares.
Finally, Goldman Sachs (NYSE:GS) raised its stake in the software giant by 5% to nearly 41 million shares in Q3.
Alphabet (GOOG, GOOGL)
Bill Ackman, the well-known, multi-billionaire investor, more than doubled the number of Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) shares that he owns to 4.35 million in Q3.
Whale Rock, an investment advisor owned by billionaire Alex Sacerdote, increased its stake in the search engine giant by 4% to 1.58 million shares.
Also noteworthy is that JPMorgan hiked its stake in GOOG stock by 11% to a massive 95.9 million shares in Q3, while Morgan Stanley (NYSE:MS) raised its GOOG stock by nearly 10% to 75.9 million.
Meanwhile, Norges Bank, Norway’s huge sovereign wealth fund, hiked its stake in GOOG by 50% to 34.48 million shares in Q3.
D.R. Horton (DHI)
The most famous multi-billionaire investor of all, Warren Buffett, acquired nearly 5.7 million shares of homebuilder D.R. Horton (NYSE:DHI) in the second quarter of this year. The Oracle of Omaha’s holding company, Berkshire Hathaway (NYSE:BRK.A, NYSE:BRK.B), did not change its position last quarter.
But at least two hedge funds owned by lesser-known billionaire investors significantly increased their holdings in DHI. Renaissance Technologies, founded by multi-billionaire Jim Simon, acquired DHI stock for the first time in Q3, snapping up nearly 1.16 million shares.
Also placing a big bet on the name was Point72 Asset Management, owned by multi-billionaire Steve Cohen. The latter hedge fund bought over 905,000 shares of DHI in Q3.
The billionaires are likely betting that lower interest rates in 2024 will significantly boost the financial results of DHI and other stocks.
On the date of publication, Larry Ramer 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.
