In this article, we will discuss the 10 Best Fundamental Stocks to Buy According to Billionaires.
As per Fitch Ratings, the US tariffs are now at levels that continue to transform the global economic outlook, meaningfully increasing the US recession risks as well as constraining the US Fed’s ability to reduce the interest rates further. The ratings agency believes that tariff hikes are expected to result in increased consumer prices and reduced corporate profits in the US. The increased prices can squeeze real wages, impacting consumer spending, with reduced profits and policy uncertainty weighing over business investments. Notably, upward pressure on goods prices due to tariffs would mean that the US Fed is likely to become more cautious when it comes to further rate cuts.
Tariffs Can Be Reduced, Says UBS
In the base case (to which UBS assigns a 50% probability), the firm anticipates tariffs to be reduced from the levels that have been announced. That being said, the process is expected to take some time. UBS anticipates that there can be a tariff-related slowdown in growth in Q2 and Q3. Even if tariffs get reduced by the end of the year, the shock and related uncertainty can result in a near-term slowdown in the broader US economy, impacting FY 2025 growth.
UBS believes that market uncertainty is expected to remain elevated, with investors focusing on potential downgrades to consensus US economic and earnings growth projections, the risk related to the tit-for-tat escalation, among others. Therefore, there can be an extended period of volatility for the broader US equities.
READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In.
What Should Investors Do?
Despite the uncertainties, UBS expects that the market will end the year higher. Apart from themes of AI and Power and resources, the firm has identified longevity and companies benefiting from the megatrend as the third Transformational Innovation Opportunity. The investors can also consider using yield-generating strategies so that they can benefit from current increased levels of volatility. UBS says that since the tariffs have been announced, negotiations to soften can now start.
Furthermore, the tariff revenue can be utilised to offset the cost of extending tax cuts. Additionally, the Fed may respond to weakening growth by cutting interest rates. Morningstar believes that some of the leading mega-cap stocks rated as “wide moat” have experienced a decline this year. The firm believes that wide-moat stocks are the most attractively valued, and it sees value throughout the entire range of such stocks.
With this in mind, we will now have a look at the 10 Best Fundamental Stocks to Buy According to Billionaires.

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Our Methodology
To list the 10 Best Fundamental Stocks to Buy According to Billionaires, we sifted through Vanguard S&P 500 ETF and Insider Monkey’s exclusive database of billionaire stock holdings to shortlist the companies that have at least ~8% revenue and net income growth over the past 5 years. For the stocks with the same number of billionaire holdings, we have used the number of hedge fund investors as a secondary metric to rank the stocks, as of Q4 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10 Best Fundamental Stocks to Buy According to Billionaires
10. Costco Wholesale Corporation (NASDAQ:COST)
5-year Revenue Growth: 10.7%
5-year Net Income Growth: 15.07%
Number of Billionaire Investors: 16
Number of Hedge Fund Holders: 96
Costco Wholesale Corporation (NASDAQ:COST) is engaged in the operation of membership warehouses. Bernstein analysts upped the company’s price objective to $1,177 from the prior target of $1,167, reaffirming an “Outperform” rating. Bernstein analysts highlighted the company’s continued success in attracting consumers. Furthermore, the analysts are optimistic about Costco Wholesale Corporation (NASDAQ:COST)’s potential for expansion, both domestically and internationally. They believe that the company would be able to maintain a steady pace in increasing the store count, resulting in a lengthy growth trajectory for the company.
Overall, Costco Wholesale Corporation (NASDAQ:COST)’s consistent performance and expansion strategy place it well for sustained growth over an extended period, as per analysts. Notably, S&P Global Ratings believes that the company has established a robust member base that sees value in their Costco memberships. As per the firm, Costco Wholesale Corporation (NASDAQ:COST)’s scale as the 2nd largest brick-and-mortar retailer in the world allows it to offer strong value to its members through reduced prices and unique products, aiding healthy renewal rates. S&P Global Ratings believes that the company’s sizable membership base is a strength since it creates customer loyalty and incentivizes increased purchases.
Madison Investments, an investment advisor, released its Q3 2024 investor letter. Here is what the fund said:
“Costco Wholesale Corporation (NASDAQ:COST) continues to demonstrate its commitment to sustainability by lowering its emissions. For example, it has converted its Kirkland Signature laundry packs from plastic tubs to a pouch. This has reduced plastic packaging by 80%. It has also moved to localize production of bulky items such as water, paper, and laundry detergents. Manufacturing these goods closer to the countries in which they are sold reduces emissions associated with shipping.”
9. Apple Inc. (NASDAQ:AAPL)
5-year Revenue Growth: 8.13%
5-year Net Income Growth: 10.8%
Number of Billionaire Investors: 21
Number of Hedge Fund Holders: 166
Goldman Sachs reiterated a “Buy” rating on Apple Inc. (NASDAQ:AAPL)’s stock with a maintained price objective of $294.00. The shipments of foreign-branded smartphones, including the company’s iPhone, in China went up by 9.2% in February YoY, as per Reuters calculations. Goldman Sachs’ strong support for Apple Inc. (NASDAQ:AAPL)’s stock reflects its confidence in the company’s performance despite the evolving market conditions in China. Notably, the market share dynamics as well as the recent product release remain the key factors in the firm’s analysis of Apple Inc. (NASDAQ:AAPL)’s stock. Elsewhere, Tigress Financial Partners exhibited optimism, with the firm maintaining a “Strong Buy” rating and increasing the price objective to $300, highlighting the company’s growth in services and innovation.
The integration of advanced AI capabilities into iPhones provides a strong growth opportunity for Apple Inc. (NASDAQ:AAPL) to fuel future upgrades and revenue growth. The features, including advanced image recognition, enhanced natural language processing, and personalized AI assistants, can offer reasons for customers to upgrade their devices. This can fuel iPhone sales and engagement with Apple Inc. (NASDAQ:AAPL)’s services ecosystem.
Columbia Threadneedle Investments, an investment management company, published its Q4 2024 investor letter. Here is what the fund said:
“The fund maintained a position in Apple Inc. (NASDAQ:AAPL) throughout the quarter through the release of the company’s new iPhone 16 in September. Company leaders were excited about the release of the new model, as this is the first model that will feature enhanced AI capabilities through the Apple Intelligence features. Sales for the first few weeks in October and November trailed behind year over year sales from the iPhone 15, as availability of Apple Intelligence was not compatible with all iPhone models. Apple announced a partnership with OpenAI that has allowed the integration of ChatGPT into the Apple ecosystem, separate from the core Apple Intelligence features. This partnership highlights continued progress from Apple to introduce AI capabilities into its products and we expect the iPhone 17 to have even more expansive AI capabilities, increasing potential demand for the new model that is on track to be released in 2025.”
8. Mastercard Incorporated (NYSE:MA)
5-year Revenue Growth: 10.7%
5-year Net Income Growth: 9.6%
Number of Billionaire Investors: 22
Number of Hedge Fund Holders: 151
Mastercard Incorporated (NYSE:MA) is a technology company that is engaged in providing transaction processing as well as other payment-related products and services in the US and internationally. Morgan Stanley analyst James Faucette maintained a “Buy” rating on the company’s stock, setting a price objective of $644.00. The analyst’s rating is backed by factors, mainly highlighting the company’s strategic expansion in its Value-Added Services (VAS) business. The analyst noted that Mastercard Incorporated (NYSE:MA)’s recent acquisitions, including Brighterion, Recorded Future, Ekata, and RiskRecon, have strengthened the capabilities in AI, digital identity verification, threat intelligence, and cybersecurity.
These acquisitions continue to enhance Mastercard Incorporated (NYSE:MA)’s capability to offer comprehensive security solutions that remain critical in the present digital landscape. Mastercard Incorporated (NYSE:MA)’s emphasis on integrating such services throughout the transaction lifecycle places it well for future growth. Elsewhere, Tigress Financial Partners maintained a “Strong Buy” rating on the company’s stock, increasing the price objective to $685. The firm lauded its robust market position and innovations in electronic payments and cybersecurity.
Alluvium Asset Management, an asset management company, released its Q4 2024 investor letter. Here is what the fund said:
“Last quarter we wrote about the credit card companies and the Fund’s latest investment, Visa (up 15.2%). With its strong share price performance, that position had grown to be greater than 5%. As we had discussed here, we consider there to be negligible differences in investment merits when compared to Mastercard Incorporated (NYSE:MA) (up 6.8%). Whilst Visa appears a little cheaper on traditional price metrics, our view is that Mastercard has marginally higher growth prospects. Irrespective, both are deserving positions in the portfolio, and given their similarities, and the 5/10/40 rule, in order for us to maintain maximum portfolio flexibility it made sense to sell a little Visa and buy a little Mastercard, and their combined position is 6.2%.”
7. Alphabet Inc. (NASDAQ:GOOG)
5-year Revenue Growth: 16.6%
5-year Net Income Growth: 23.8%
Number of Billionaire Investors: 24
Number of Hedge Fund Holders: 174
A reputed investor, with the pseudonym Juxtaposed Ideas, opines that the dip in Alphabet Inc. (NASDAQ:GOOG)’s stock offers a limited window to buy in. The investor expressed optimism regarding the Google Services business, with the company being able to monetize the existing offerings. Furthermore, the investor opines that Alphabet Inc. (NASDAQ:GOOG)’s autonomous segment is expected to act as a long-term growth driver. The company’s ongoing investments in AI technology can create significant value throughout the diverse portfolio of products and services.
In search, the integration of more advanced AI models can help in improving query understanding as well as result relevance, enhancing user engagement and ad effectiveness. This could help Alphabet Inc. (NASDAQ:GOOG) maintain its search market dominance as well as fuel continued growth in advertising revenues. The company’s AI advancements can result in breakthrough products in emerging fields, including autonomous vehicles (through Waymo) and quantum computing. In cloud computing, Alphabet Inc. (NASDAQ:GOOG)’s AI capabilities can help it stand apart from competitors, resulting in more enterprise customers and fueling higher-margin service adoption.
Columbia Threadneedle Investments, an investment management company, released Q4 2024 investor letter. Here is what the fund said:
“Alphabet Inc. (NASDAQ:GOOG) (parent company Alphabet) generated strong double-digit returns during the quarter, as the company’s tremendous innovation in AI, along with strength in its core business of search and advertising and a healthy focus on profit growth and shareholder friendly capital allocation, shifted investor focus away from ongoing litigation with the Department of Justice related to market dominance. In the month of December alone, Google released to the public Gemini 2.0, its most capable AI model yet, as well as new generative image and vision models. And if that was not enough, Google also announced progress in quantum computing. Once considered an AI laggard, the flurry of product announcements and AI development did not go unnoticed by the market and the stock reacted accordingly.”
6. Broadcom Inc. (NASDAQ:AVGO)
5-year Revenue Growth: 19.1%
5-year Net Income Growth: 30.7%
Number of Billionaire Investors: 25
Number of Hedge Fund Holders: 161
Broadcom Inc. (NASDAQ:AVGO) is engaged in designing, developing, and supplying semiconductor and infrastructure software solutions. Daiwa upped the company’s stock to “Buy” from “Outperform.” Notably, the firm expects 4 strong drivers for the company going forward. These include Broadcom Inc. (NASDAQ:AVGO)’s application-specific integrated circuit processors, networking, and the acquisition of VMware offering growth as well as core semiconductor business. Elsewhere, TD Cowen maintained a positive stance on the company’s stock.
TD Cowen’s analyst, Joshua Buchalter, mentioned Broadcom Inc. (NASDAQ: AVGO)’s performance in AI revenue as a critical factor for the optimistic outlook. The analyst also highlighted that the demand for AI infrastructure remains strong over the near term, aiding its growth prospects. Furthermore, Broadcom Inc. (NASDAQ:AVGO)’s ability to get new projects as well as fuel revenue in critical areas such as AI demonstrates a strong business strategy. Overall, the analyst’s views strengthen the importance of AI revenue to the company’s overall financial health and the confidence of the broader market in Broadcom Inc. (NASDAQ:AVGO)’s capability to scale operations through new customers.
Renaissance Investment Management, an investment management company, published the Q4 2024 investor letter. Here is what the fund said:
“Broadcom Inc. (NASDAQ:AVGO) was another large contributor in the quarter after reporting solid operating results. The company presented an optimistic outlook, driven by its dominant position in artificial intelligence application-specific chipsets. In addition, the company should continue to benefit from its leading position in several end markets including data centers and cloud infrastructure, which have favorable secular growth trends. Broadcom is also seeing margin expansion and improved visibility, as the mix of software revenues increases, following the acquisition of VMWare.”
5. Netflix, Inc. (NASDAQ:NFLX)
5-year Revenue Growth: 14.1%
5-year Net Income Growth: 36.0%
Number of Billionaire Investors: 25
Number of Hedge Fund Holders: 144
Netflix, Inc. (NASDAQ:NFLX) offers entertainment services. Moffett Nathanson upped the company’s rating from “Neutral” to “Buy,” increasing the 12-month price target from $850 to $1,100 per share. The firm has highlighted Netflix, Inc. (NASDAQ:NFLX)’s robust standing in the streaming market, expectations for strong margin improvement, and improving possibilities for advertisement income. Moffett Nathanson lauded the “Netflix flywheel” effect, in which the company’s subscriber base continues to support more content expenditure, thereby bolstering engagement and justification of changes in price.
The ad-supported tier offers a strong opportunity for Netflix, Inc. (NASDAQ:NFLX) to exploit new revenue streams and enhance the subscriber base. With the company refining its ad technology and targeting capabilities, it can capture a significant share of the global TV advertising market. Notably, the capability to provide advertisers access to large and engaged audiences with precise targeting can help the company command premium rates. Also, the ad-supported tier can act as an entry point for price-sensitive consumers, which can result in upgrades to higher-priced tiers in the long term.
Harding Loevner, an asset management company, released its Q4 2024 investor letter. Here is what the fund said:
“During the quarter, we benefited from strong stocks within the Communication Services and Consumer Discretionary sectors. Netflix, Inc. (NASDAQ:NFLX) was our top relative contributor; the company provided a favorable outlook for subscriber growth in 2025 and made progress in two key areas, live TV and advertising. The streaming service broadcast its first sporting events, including two National Football League games on Christmas, and said that the ad-supported plan it launched two years ago amassed 70 million subscribers, more than investors expected.”
4. Visa Inc. (NYSE:V)
5-year Revenue Growth: 9.3%
5-year Net Income Growth: 10.05%
Number of Billionaire Investors: 26
Number of Hedge Fund Holders: 181
Visa Inc. (NYSE:V) operates as a payment technology company in the US and internationally. The company’s strategic focus on expanding value-added services (VAS) and establishing new payment flows places it for sustained growth moving forward. Apart from providing additional revenue streams, these services enhance the company’s value proposition to issuers, acquirers, and merchants. Through providing a comprehensive suite of services over and above the basic transaction processing, Visa Inc. (NYSE:V) can deepen the relationships with partners as well as increase the switching costs, further improving the competitive moat.
The company’s comprehensive suite of value-added services spans 5 categories — Issuing Solutions, Acceptance Solutions, Risk and Identity Solutions, Open Banking Solutions, and Advisory Services. Visa Inc. (NYSE:V) has completed the acquisition of Featurespace, which is a developer of real-time AI payments protection technology that prevents and mitigates payments fraud and financial crime risks. With real-time payments becoming more prevalent, the advanced fraud detection systems would be critical. Also, WSJ reported that Visa Inc. (NYSE:V) has offered Apple a ~$100 million payment in an effort to get the tech giant’s credit card as part of the battle between the well-established payment networks.
Meridian Funds, managed by ArrowMark Partners, released its Q4 2024 investor letter. Here is what the fund said:
“Visa Inc. (NYSE:V) is the world’s largest retail electronic payments network. We hold Visa in the portfolio because of its formidable competitive moat, built on network effects spanning billions of cards and millions of merchants globally. The company continues to benefit from the secular shift toward electronic payments while expanding its portfolio to include high-growth adjacent offerings. While U.S. market penetration is mature, international markets—particularly in emerging economies, where cash usage remains prevalent— offer significant growth opportunities. Visa’s operating model demonstrates strong leverage, with incremental revenue efficiently flowing to the bottom line. This quarter, Visa outperformed expectations across key metrics, with payment volumes and transaction growth proving resilient despite macro uncertainties. Looking ahead, we anticipate continued momentum into fiscal 2025, driven by the ongoing transition to digital payments, international expansion, and the scaling of newer business lines.”
3. NVIDIA Corporation (NASDAQ:NVDA)
5-year Revenue Growth: 64.2%
5-year Net Income Growth: 91.9%
Number of Billionaire Investors: 29
Number of Hedge Fund Holders: 223
Julian Lin, a reputed investor, believes that NVIDIA Corporation (NASDAQ:NVDA)’s recent sell-off amidst AI and tech stock routs provides a buying opportunity thanks to its competitive positioning, healthy balance sheet, and reasonable valuation. The investor believes that NVIDIA Corporation (NASDAQ:NVDA) has established a unique computing ecosystem based on the CUDA platform. This is the largest developer community for accelerated computing, which can provide the company with a competitive edge, says Lin.
Elsewhere, Phillip Securities analyst Yik Ban Chong maintained the bullish stance on the company’s stock, giving a “Buy” rating. The analyst’s rating is backed by factors including its healthy performance in critical segments and the strategic positioning for future growth. Notably, the strong growth in the automotive segment, due to the autonomous vehicle chips, as well as higher CAPEX from hyperscalers, can drive demand in the data center segment, says the analyst. These factors, together with NVIDIA Corporation (NASDAQ:NVDA)’s capability to cater to AI GPU demand, support the optimistic outlook. The company’s consistent technological leadership in GPU design and AI acceleration places it well for the AI revolution.
Guinness Global Innovators, an investment management company, released its Q4 2024 investor letter. Here is what the fund said:
“For a second year running, NVIDIA Corporation (NASDAQ:NVDA) was the Fund’s top performing stock, delivering a stellar return of +177.7% over the year. Since the beginning of last year, Nvidia’s ‘Hopper’ GPUs have been at the centre of exploding demand for chips powerful and efficient enough to facilitate the energy intensive requirements of AI processes within datacentres. Initially possessing over 95% of market share in these types of chips, Nvidia have been quick to entrench their position as the technological leader in the space, launching the successor to the current ‘Hopper’ GPU in March, Blackwell, inhibiting the likes of AMD and Intel making meaningful inroads in taking share of the fast-growing market. Compared to the previous iteration (Hopper) which is continuing to fuel Nvidia’s extreme revenue growth, the Blackwell chip is twice as powerful for training AI models and has 5 times the capability when it comes to “inference” (the speed at which AI models respond to queries). Throughout the year, Nvidia’s financial performance has remained resilient. Quarterly revenues hit $35.1 billion in their most recent quarter, beating consensus expectations by 6% and representing a +94% year-over-year increase. Additionally, Nvidia’s data centre segment, driven by the Hopper (H100) chip, grew fivefold over the past year, underscoring the sustained demand for advanced AI infrastructure. The H100 chip, priced at around $40,000, continues to see significant adoption due to its ability to enhance AI model training efficiency while lowering overall costs. This growth is expected to continue as companies invest in upgrading existing data centres and building new ones, with Nvidia well-positioned to capture a significant share of the estimated $2 trillion market opportunity over the next five years. There have been some concerns over Blackwell production delays causing share price volatility however, Nvidia has recovered swiftly, driven by positive earnings results through the year and assurances from management regarding future supply. Additionally, the release of the H200 chip promises to extend Nvidia’s technological leadership, ensuring continued momentum into 2025. While Nvidia’s valuation remains a topic of debate, the stock is not at a significant premium to history, and it still appears reasonable given its dominant market position, innovative prowess, and exposure to long-term secular growth trends in AI, cloud computing, and data infrastructure. As a result, Nvidia remains well-positioned to deliver sustained outperformance over the long term, making it a cornerstone of growth-oriented portfolios.”
2. Microsoft Corporation (NASDAQ:MSFT)
5-year Revenue Growth: 14.2%
5-year Net Income Growth: 15.9%
Number of Billionaire Investors: 39
Number of Hedge Fund Holders: 317
RBC Capital Markets analyst Rishi Jaluria provided a price objective of $500 on Microsoft Corporation (NASDAQ: MSFT)’s stock, giving it an “Outperform” rating. The analyst mentioned that the investors might be underestimating its strength in generative AI. Furthermore, the company’s Azure cloud business can accelerate again due to AI demand and a healthy reputation as a leader in enterprise software and cloud infrastructure, says Jaluria. The analyst also highlighted that Microsoft Corporation (NASDAQ:MSFT) has plans to enter new areas of growth, such as hyperautomation, while also continuing to enhance Office software users.
The company’s Azure platform has been gaining market share against competitors. Microsoft Corporation (NASDAQ:MSFT)’s robust position in the public cloud market, together with the integration of AI models, offers a strong competitive advantage. The company’s ability to leverage existing customer relationships as well as cross-sell AI and cloud services throughout the diverse product portfolio further bolsters its market position. Generation Investment Management, an investment management firm, released its Q4 2024 investor letter. Here is what the fund said:
“Microsoft Corporation (NASDAQ:MSFT), the world’s largest software company, has been in the portfolio for over a decade. We like the firm because its products align closely with society’s evolving needs. As the world digitises, demand for Microsoft’s tools will continue to grow. The company enjoys a wide economic moat – built on its unique market position, deep customer understanding and extensive global footprint.
Microsoft’s management team has a long-term vision. It makes bold investments in future growth, most recently in AI. We forecast that the IT intensity of the economy will double over the next 15 years. Microsoft is a rare company with USD 250 billion in revenues, projected to grow at 16% annually over the next five years.14 Earnings-per share could grow faster. Despite its near-term valuation appearing high, we believe Microsoft is well positioned to lead in the AI era, potentially doubling or tripling its market share. Additionally, we expect returns on capital (ROC) for its AI related investments to match historical levels, despite market scepticism.
There are risks. Demand for AI systems may not materialise as expected, and increasing pricing power among suppliers like Nvidia could pressure margins. Still, from our analysis we see substantial long-term value in this name.”
1. Amazon.com, Inc. (NASDAQ:AMZN)
5-year Revenue Growth: 17.8%
5-year Net Income Growth: 38.5%
Number of Billionaire Investors: 40
Number of Hedge Fund Holders: 339
Monness analyst Brian White maintained the bullish stance on Amazon.com, Inc. (NASDAQ:AMZN)’s stock, providing a “Buy” rating on March 21. The analyst’s rating is backed by a combination of factors demonstrating the company’s strategic positioning and growth potential. Despite the short-term challenges, Amazon Web Services (AWS) remains well-placed to capitalize on the long-term trends in AI. Furthermore, the analyst added that Amazon.com, Inc. (NASDAQ:AMZN) has benefited from GenAI by training large language models, and the growth drivers are anticipated to expand further.
Notably, strong capital expenditures in AI infrastructure are expected, and AWS and other cloud service providers can be the leading beneficiaries. The expectations for increased inferencing activity further strengthen the healthy outlook for AWS, says White. Such factors, together with the broader industry trends related to the AI and cloud services, support the optimistic outlook for Amazon.com, Inc. (NASDAQ:AMZN)’s stock. In cloud computing, AI capabilities are expected to enhance AWS’ offerings as well as bring more enterprise customers.
Harding Loevner, an asset management company, released its Q4 2024 investor letter. Here is what the fund said:
“During the quarter, we benefited from strong stocks within the Communication Services and Consumer Discretionary sectors. In Consumer Discretionary, Amazon.com, Inc. (NASDAQ:AMZN) reported strong third-quarter results. Revenue increased by double digits, led by growth in advertising and Al products, while the company’s operating margins also hit an all-time high of 11%. The key reasons for the higher margins were that its international e-commerce operations turned profitable, and there was faster growth in its high-margin cloud-computing business.”
While we acknowledge the potential of AMZN as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for a deeply undervalued AI stock that is more promising than AMZN but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
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