In this article, we discuss the 10 best growth stocks to buy today according to billionaire Ken Fisher. If you want to skip our detailed analysis of these stocks, go directly to the 5 Best Growth Stocks to Buy Today According to Billionaire Ken Fisher.
Ken Fisher is a money manager, best-selling author, and the founder of Fisher Asset Management, a hedge fund based in Washington that had a portfolio value of over $160 billion at the end of the third quarter of 2021. The life story of the billionaire, whose personal net worth is $6.7 billion, makes for very interesting reading. Fisher was a fruit-picker in his teenage years, making a measly $1.2 per hour in California, while also attending school. Today, he is one of the most successful investors on Wall Street with a career spanning decades at the top.
Fisher founded his investment firm in 1979 with just $250. He was the CEO of the firm for 37 years before stepping down from that role to serve as the Executive Chairman. He is also a celebrated author, penning 11 books, out of which 6 have been best-sellers in the United States. He has written for publications like Forbes, USA Today, and the Financial Times, among others. His work has been published in scholarly journals as well. The investor has a background in forestry and economics.
Some of the stocks in the portfolio of Fisher Asset Management at the end of September included Apple Inc. (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT), Amazon.com, Inc. (NASDAQ:AMZN), and Alphabet Inc. (NASDAQ:GOOG), among others discussed in detail below.
Our Methodology
These were picked from the investment portfolio of Fisher Asset Management at the end of the third quarter of 2021. They are listed according to the value of each holding in the portfolio.
The hedge fund sentiment around each stock was calculated using the data of 873 hedge funds tracked by Insider Monkey.
Best Growth Stocks to Buy Today According to Billionaire Ken Fisher
10. Oracle Corporation (NYSE:ORCL)
Number of Hedge Fund Holders: 55
Oracle Corporation (NYSE:ORCL) provides enterprise information technology services. The company recently announced that it would be setting up 14 cloud regions across the world in a bid to meet the skyrocketing demand for enterprise cloud solutions.
Latest data shows that Fisher Asset Management owned 15.3 million shares of Oracle Corporation (NYSE:ORCL) at the end of the third quarter of 2021 worth $1.3 billion, representing 0.82% of the portfolio.
At the end of the second quarter of 2021, 55 hedge funds in the database of Insider Monkey held stakes worth $2.8 billion in Oracle Corporation (NYSE:ORCL), up from 52 in the preceding quarter worth $2.8 billion.
Just like Apple Inc. (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT), Amazon.com, Inc. (NASDAQ:AMZN), and Alphabet Inc. (NASDAQ:GOOG), Oracle Corporation (NYSE:ORCL) is one of the stocks on the radar of growth investors.
Here is what Ariel Investments has to say about Oracle Corporation (NYSE:ORCL) in its Q1 2021 investor letter:
“A temporary factor might be a downturn in the high-yield bond market driving up LBO financing costs for the decline in 2021 GAAP revenue for Oracle Corporation (ORCL) due to a change in accounting methods. In all these examples, stock prices were driven well-below our calculations of intrinsic value. We invested in each company with good outcomes. Later, we will offer instances when this strategy is not successful.”
9. Netflix, Inc. (NASDAQ:NFLX)
Number of Hedge Fund Holders: 113
Netflix, Inc. (NASDAQ:NFLX) provides online entertainment services. According to regulatory filings, Fisher Asset Management owned 4.1 million shares in the company at the end of September 2021 worth $2.5 billion, representing 1.57% of the portfolio.
On November 15, investment advisory KeyBanc maintained an Overweight rating on Netflix, Inc. (NASDAQ:NFLX) stock and raised the price target to $725 from $690, highlighting increased confidence in the net advertising growth of the firm compared to peers.
Among the hedge funds being tracked by Insider Monkey, Chicago-based firm Citadel Investment Group is a leading shareholder in Netflix, Inc. (NASDAQ:NFLX) with 4.6 million shares worth more than $2.4 billion.
In its Q1 2021 investor letter, Polen Capital, an asset management firm, highlighted a few stocks and Netflix, Inc. (NASDAQ:NFLX) was one of them. Here is what the fund said:
“We purchased Netflix in March, initiating a 3% position in the Portfolio. We believe Netflix is a highly competitively advantaged company. It has recently met all our investment guardrails, and we anticipate it will remain sustainably above our guardrails over the next five years and beyond. We know Netflix for its ubiquitous streaming service and deep library of owned content. The company has made investments in this content (currently running at nearly $20 billion/year), generally keeping subscribers highly engaged and loyal to their service. The company has number one market share in 99% of markets globally, but it is our view that video streaming on-demand is still an underpenetrated space with many years of attractive growth likely ahead. The service is also relatively affordable at roughly $11/month on average globally.
We believe Netflix’s growth in content spend is beginning to moderate, which could allow margin expansion to continue for many years when paired with ongoing subscriber growth and price increases. While there is competition from the likes of Apple (Apple TV+), Amazon (Prime Video), Disney (Disney+ and Hulu), and others, we believe there can be a handful of winners in this industry. Already, we see many people subscribe to multiple streaming video services, with Netflix being their “anchor” service. That said, the barriers to entry are high, and we believe they are getting higher given the substantial amount of capital and size of the subscriber base required to maintain a competitive service for both viewers and content producers. Over the next five years, we expect Netflix’s earnings growth to be approximately 30% annualized and free cash flow to grow at an even higher rate.”
8. Meta Platforms, Inc. (NASDAQ:FB)
Number of Hedge Fund Holders: 266
Meta Platforms, Inc. (NASDAQ:FB) is a diversified technology company that focuses on interactive media and related services. The firm recently changed its name to Meta from Facebook as part of a broad plan to expand into the “metaverse” and shift away from the “social media giant” tag.
The hedge fund of billionaire Ken Fisher owned over 7.5 million shares of Meta Platforms, Inc. (NASDAQ:FB) at the end of the third quarter of 2021 worth more than $2.5 billion, representing 1.6% of the total portfolio of the fund.
At the end of the second quarter of 2021, 266 hedge funds in the database of Insider Monkey held stakes worth $42 billion in Meta Platforms, Inc. (NASDAQ:FB), up from 257 in the preceding quarter worth $40 billion.
In its Q1 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Meta Platforms, Inc. (NASDAQ:FB) was one of them. Here is what the fund said:
“We continued to keep our learnings from 2020 in mind during the quarter as we sought to increase the up capture of the portfolio. We also made adjustments to the portfolio’s top 10 holdings to increase the participation of select stocks, including Facebook, while trimming our weighting to stable names, which now represent 47% of the portfolio. Our repositioning has been encouraging so far with the portfolio performing better on up days in the market while maintaining good down capture during more turbulent sessions.”
7. PayPal Holdings, Inc. (NASDAQ:PYPL)
Number of Hedge Fund Holders: 143
PayPal Holdings, Inc. (NASDAQ:PYPL) owns and runs a digital payments platform. Fisher Asset Management owned 11.9 million shares in the company at the end of September 2021 worth $3.1 billion, representing 1.93% of the portfolio of the fund.
UBS analyst Rayna Kumar recently assumed coverage of PayPal Holdings, Inc. (NASDAQ:PYPL) stock with a Buy rating and a price target of $263, noting the pullback in share prices of the firm following quarterly earnings disappointment was a “buying opportunity”.
At the end of the second quarter of 2021, 143 hedge funds in the database of Insider Monkey held stakes worth $16.3 billion in PayPal Holdings, Inc. (NASDAQ:PYPL), the same as in the preceding quarter worth $14.7 billion.
In its Q4 2020 investor letter, Polen Capital Management, an asset management firm, highlighted a few stocks and PayPal Holdings, Inc. (NASDAQ:PYPL) was one of them. Here is what the fund said:
“For the full year 2020, one of the top performers was PayPal, which we purchased in 2019, the company continues to take market share in digital payments and has seen an acceleration in user adoption and engagement, especially within their “silver tech” or older user demographic. We expect many more years of ongoing double-digit growth from their various business segments and new initiatives.”
6. Adobe Inc. (NASDAQ:ADBE)
Number of Hedge Fund Holders: 89
Adobe Inc. (NASDAQ:ADBE) is a diversified software company. In earnings results for the third quarter, posted in September, it reported earnings per share of $3.11, beating estimates by $0.09. The revenue over the period was $3.9 billion, up 22% year-on-year.
Latest securities filings reveal that Fisher Asset Management owned 6.4 million shares in Adobe Inc. (NASDAQ:ADBE) at the end of the third quarter of 2021 worth $3.7 billion, representing 2.3% of the portfolio.
Among the hedge funds being tracked by Insider Monkey, Boston-based investment firm Arrowstreet Capital is a leading shareholder in Adobe Inc. (NASDAQ:ADBE) with 2.3 million shares worth more than $1.3 billion.
In addition to Apple Inc. (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT), Amazon.com, Inc. (NASDAQ:AMZN), and Alphabet Inc. (NASDAQ:GOOG), Adobe Inc. (NASDAQ:ADBE) is one of the stocks that hedge funds are buying.
Here is what Polen Capital has to say about Adobe Inc. (NASDAQ:ADBE) in its Q1 2021 investor letter:
“Adobe and Autodesk are both prime examples of the rotation that occurred during the quarter. Both are dominant businesses in their respective markets, which are experiencing structural tailwinds. Despite each business’s position of strength, the stocks of cyclicals and businesses with higher leverage and lower profitability were more favored this past quarter. In stark contrast, Adobe and Autodesk both have low leverage, high levels of profitability, high recurring revenues that mitigate cyclicality, and are both capital-light business models—all attributes we appreciate as investors. Adobe and Autodesk were also two of the top three performers within the Portfolio during 2020.”
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Disclosure. None. 10 Best Growth Stocks to Buy Today According to Billionaire Ken Fisher is originally published on Insider Monkey.
