Who doesn’t dream of becoming an iconic investor like Warren Buffett, Carl Icahn, Daniel Loeb, David Tepper, Stanley Druckenmiller or David Einhorn? Keeping investors’ aspirations in mind, we have profiled a few stocks and ETFs below that billionaire investors are currently picking.
The latest 13-F filings of billionaires indicate that most are still bullish on big techs, even after a 32.6% price rise in
Roundhill Magnificent Seven ETF ( MAGS Quick Quote MAGS - Free Report) . 13F disclosures should not be viewed as direct indicators, but as tools to strengthen confidence in a particular market sector or area.
Keeping investors’ aspirations in mind, we have profiled an area — Big Tech — that billionaire investors are betting on currently.
Follow Warren Buffett by Investing in Apple
Billionaire investor Warren Buffett is known for his winning investing style. Buffett’s company Berkshire Hathaway’s latest 13-F filing showed that Berkshire’s $313 billion portfolio was invested
in 45 companiesin the third quarter of 2023. Berkshire was a net seller of about $5.3 billion in stocks during the quarter.
Buffett is outright bullish on
Apple ( AAPL Quick Quote AAPL - Free Report) despite its slowing growth. Apple remains his largest holding at a staggering 50% allocation. Buffett famously loves cash-rich companies. Even though Apple’s growth has slowed, it still has a hoard of cash on hand. However, Buffett pared a small holding in Amazon (AMZN).
Investors intending to follow Buffett and be part of Apple’s value as well as growth story, can play ETFs like
iShares Dow Jones US Technology ETF ( IYW Quick Quote IYW - Free Report) , Select Sector SPDR Technology ETF ( XLK Quick Quote XLK - Free Report) and Vanguard Information Technology ETF (VGT). David Tepper Bets on Big Tech
Tepper expects the strength in big-cap tech to continue. His top five positions include
Nvidia ( NVDA Quick Quote NVDA - Free Report) (increased stake by 580%), Meta Platforms META, Microsoft ( MSFT Quick Quote MSFT - Free Report) , Amazon (AMZN), and Alibaba (BABA). With interest rates likely to fall in 2024 and tech being the essence of the new normal lifestyle, Tepper’s bets make sense. However, David Tepper's Appaloosa exited position in Apple in the third quarter. Roundhill Magnificent Seven ETF ( MAGS Quick Quote MAGS - Free Report) would be a good bet for following David Tepper. Investors can play Alibaba-heavy ETFs like MicroSectors FANG+ ETN FNGS and ProShares Online Retail ETF ONLN. ETFs like ONLN, Vanguard Consumer Discretionary ETF ( VCR Quick Quote VCR - Free Report) and Consumer Discretionary Select Sector SPDR Fund (XLY) are good for Amazon plays.
The stock MSFT has a strong position in ETFs like
Technology Select Sector SPDR Fund ( XLK Quick Quote XLK - Free Report) and Fidelity MSCI Information Technology Index ETF ( FTEC Quick Quote FTEC - Free Report) . The stock META has a huge weight in Communication Services Select Sector SPDR Fund ( XLC Quick Quote XLC - Free Report) and Fidelity MSCI Communication Services Index ETF (FCOM). Stanley Druckenmiller: A Fan of AI
Stanley Druckenmiller is perhaps best known for breaking the Bank of England with famed investor George Soros in 1992. Druckenmiller has maintained a winning record throughout his career, spanning over three decades, without ever experiencing a losing year.
Druckenmiller’s top five positions include NVDA (reduced by 7%), Korean e-commerce company
Coupang (CPNG), Microsoft ( MSFT Quick Quote MSFT - Free Report) (added 22%), Eli Lilly ( LLY Quick Quote LLY - Free Report) and Teck Resources (TECK). In the past, Druckenmiller has compared the potential of artificial intelligence (AI) with the Internet, making it unsurprising that he has a significant allocation in this sector.
Although he decreased his position in NVDA, it still constitutes his largest investment, suggesting his continued optimism about the stock while possibly engaging in tactical trading within his core position. Nvidia has a solid position in
VanEck Semiconductor ETF ( SMH Quick Quote SMH - Free Report) and AXS Esoterica NextG Economy ETF WUGI. Follow Bill Ackman by Investing in Alphabet
Bill Ackman, too, has exposure to AI. The value of Alphabet’s position was $1.2 billion at the end of September. His portfolio also held about $569.9 million worth of Alphabet's Class A shares. Alphabet-heavy ETFs are XLC, FCOM and
Vanguard Communication Services ETF ( VOX Quick Quote VOX - Free Report) . Each fund holds GOOG shares at about 10%. Jim Simons Loves Microsoft Amongst Magnificent Seven
Simonsis known for his quantitative approach to investing. He has established a highly successful hedge fund, utilizing
intricate algorithms and comprehensive data analysis for trading decisions. His approach, grounded in science and a critical view of statistical anomalies, has redefined excellence in the investment industry. Simons has also boosted stakes in companies like Microsoft, Netflix (NFLX). Although he still holds Meta and Tesla, their positions have been reduced considerably.