Following a billionaire investor’s moves might not guarantee success, but it can be a great way to gain insights into the investing world. You can get to know where investors are parking their money, but you must be careful to only consider hedge fund managers who aren’t changing positions each quarter.
Look at those who remain invested for a longer tenure and have a long-term mindset. This will help generate higher returns and grow your wealth. Each of the stocks discussed here is a great buy and can outperform the market. Let’s take a look at the three stocks billionaires can’t stop buying.
Nvidia
The hot tech stock Nvidia has made several investors rich. It is one of the biggest beneficiaries of the artificial intelligence (AI) boom, and there’s a lot of belief that the stock can keep going higher. Daniel Loeb at Third Point bought Nvidia shares in the quarter, while Raymond Dalio of Bridgewater Associates also added Nvidia to the fund.
Exchanging hands for $201, the stock has gained 6.79% year-to-date and is steadily moving higher. The company reported record data center revenue and is expected to deliver impressive growth throughout this year. The fourth-quarter revenue hit $68.12 billion, and the net income grew 94.47% to $42.96 billion. Its data center revenue soared 75% year over year to $62.31 billion.
For the first quarter, the management has guided at a revenue of $78 billion, excluding China Data Center compute revenue. Despite the China export restrictions, analysts are bullish on the stock and expect to see an upside.
Meta Platforms
Another hot tech stock, Meta Platforms (NASDAQ:META | META Price Prediction), attracted billionaires in the fourth quarter. Bill Ackman loaded up on the stock, and David Tepper’s Appaloosa Management increased its stake in the company by 2.04%.
These billionaires are making a wise decision. Meta is worth the bet. It makes a ton of money through the advertising business and spends on building technologies like generative AI or AI glasses. Retail investors are only looking at the capital expenditure the company is making. Instead, if you look at the bigger picture, Meta turns out to be one of the most dominant ad businesses globally.
Its fourth quarter revenue jumped 24% year over year to $60 billion and an EPS of $8.88. The advertising segment generated $58.1 billion in the quarter, up 24% year over year. The Meta Reality Labs division generated $955 million and also resulted in a loss of $6 billion. Meta Platforms is spending billions for AI development, and I believe this amount will pay off in the long term. It has guided for a capex of $115 to $135 billion, up from $69.7 billion in 2025.
Exchanging hands for $688, the stock has gained 5.8% this year and is trading at a premium. However, it is down from the highs of $700 in Q4. Analysts are highly bullish on the stock.
Amazon
E-commerce giant Amazon (NASDAQ:AMZN | AMZN Price Prediction) has become a top choice for billionaire investors. Kenneth Griffin of Citadel Advisors increased his stake in the company by 0.38%, while Coatue Management increased its stake by 1.03%. Bill Ackmen is also betting big on the stock and has a major position in the company.
However, he’s not alone. Amazon is worth the attention it is receiving. It reported impressive numbers in the fourth quarter with Amazon Web Services (AWS) revenue reaching $35.58 billion, up 24% year over year. This was also its fastest expansion in the past 13 quarters. Its advertising business gained 23% and generated $21.32 billion. This shows that Amazon is much more than e-commerce. It has become a cash-generating machine, and its ad business is thriving.
The company expects to invest about $200 billion in capital expenditure this year, and I believe that aggressive spending will drive gains due to the soaring AI demand. Trading for $250, the stock is up 10.6% year to date. Wall Street is equally bullish with a buy rating.
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