Investing

Famous Billionaires Keep Loading up on These Stocks, Is it Time to Buy?

Vandita Jadeja

Published: January 22, 2025 2:15 pm

It isn’t a bad idea to follow billionaires’ investment strategies. While one must not blindly do what they do, keeping an eye on their investment moves could help generate significant returns. They have spent a lot of time researching and identifying the right stock picks. It might not always be a hit, but billionaires have a history of picking stocks that can beat the market. As we embark on a new year, it is time to look at the stocks that billionaires are loving right now. But before you jump in, do remember to perform your due diligence. 

Key Points About This Article:

• Following billionaire investors might not always make you a billionaire but it is a valuable strategy that can help generate significant returns.
• Here are three stocks billionaires are buying, do your due diligence and watch out for risks. 
• These three stocks are industry leaders with high growth potential.
• Discover more stocks with immense potential in the free copy of the “The Next NVIDIA” report.

Occidental Petroleum

Billionaire Warren Buffet and his team increased their stake in Occidental Petroleum Corp. (NYSE: OXY). The oil and gas company is one of the world’s largest and Buffet owns 28% share in it. Buffet purchased 8.9 million shares for $405 million. Exchanging hands for $50, the stock is down 17% in the past six months and is a strong buy. It is moving closer to the 52-week low of $45 and the pullback is a chance to load up on this oil and gas stock.

The oil demand is never going to diminish and the pullback is due to the decline in the price of crude oil. However, there are several catalysts that could boost the company’s stock price in the long run. When oil prices were soaring and hit $90 per barrel, Occidental Petroleum reported strong numbers and saw the stock price rise. However, as the price is dropping, the stock has seen a pullback. I think Occidental Petroleum is much more than the temporary volatility in crude oil prices. 

The company has assets that will continue generating free cash flow in the years to come. Additionally, it is investing in a carbon capture and storage platform which could be the world’s largest in the Permian Basin. It has also closed the acquisition of CrownRock which will help improve its operations in the Permian Basin and the management expects to generate $1 billion in annual cash flow through this deal when crude oil prices hit $70. While oil stocks aren’t for the risk-averse, looking at Occidental Petroleum beyond the volatility can set you up for gains. It is also a dividend paying stock, making it attractive for passive income investors. 

Broadcom 

Billionaire Philippe Laffont has purchased 1,488,666 shares of networking solutions specialist Broadcom (NASDAQ: AVGO). A leader in networking solutions, Broadcom could benefit from the growing demand for its custom AI chips. Trading at $240, the stock is inching closer to the 52-week high of $251. It has recently seen a rise in price target from Barclays with an Overweight rating, driven by strong AI demand. Billionaires are looking beyond Nvidia (NASDAQ:NVDA) when it comes to AI and Broadcom is anticipating a revenue in the range of $60 billion to $90 billion in the next two years. 

While it does compete with some of the biggest AI giants, Broadcom’s numbers are strong. In the fourth quarter of 2024, the company saw a revenue of $14.1 billion which is a 51% year-over-year jump and the management has an optimistic outlook for the year. The growth stock surged 96% in the past year and there is no stopping this momentum. Growing demand for custom AI chips will work as a growth driver throughout 2025. 

Its networking solutions have also seen a rise in demand and Broadcom already has the infrastructure necessary to meet the client demands. The company is in a strong position to enjoy a rally in 2025. The stock more than doubled in 2024 but there is a lot more to come. 

FedEx Corporation

Billionaire Bill Gates has been increasing his stake in FedEx Corp. (NYSE: FDX) which is over 0.6% of his total portfolio. The billionaire has more than 1 million shares in the package-delivery company. Exchanging hands for $275, FDX stock has remained flat since the start of 2025. It is moving in the range of $270 to $277. The company saw a drop in revenue in the first quarter, which saw a revenue guidance cut for 2025 and this impacted the shares. 

When it comes to the shipping and logistics industry, it is hard to imagine a world without FedEx. The company is integral for a steady delivery network and it has already built a stronghold in the industry. The company is working on streamlining operations and reducing costs to enjoy a market edge. For Q2 2025, FedEx reported an adjusted EPS of $4.05, beating analyst expectations and the revenue came in at $22 billion, missing estimates. 

The management expects stagnant year-over-year revenue for 2025 and has adjusted the EPS outlook downward. It may face headwinds in the coming months but is aimed at focusing on cost savings and improvement in technological investments. The management has also announced plans to spin off FedEx Freight into a separate entity. Investors should watch out for this stock but do not expect it to soar overnight. A pullback could be your chance to load up on FedEx stock.