In this piece, we will take a look at the 10 Best Multibagger Stocks to Buy According to Billionaires.
US Trade tariffs have triggered heightened volatility and amplified the downdraft in the equity markets. Unlike in the previous years, where pullbacks were countered by strong buying power, investors have become increasingly cautious. The S&P 500 dropping by an incredible 6% on April 4 alone in the face of the US enacting large tariffs on global trade partners has only heightened the jitters and uncertainty in the markets.
The recent market turbulence has not spared the world’s ultra-wealthy. Following the tariff announcements, the Bloomberg Billionaires Index saw the largest two-day loss in history, wiping off almost $536 billion in worth for the world’s 500 wealthiest individuals. Similarly, prominent figures on Wall Street, including money managers and bankers, have all started raising alarms about the mounting risks of the US trade war. Legendary investor Bill Gross has also joined the fray, warning that the market rout may continue.
Amid the chaos in the equity markets, opportunities are also increasingly cropping up. The deep pullbacks have lessened the steep valuations that most stocks traded on. In the run-up to major indices rallying to record highs amid the artificial intelligence-driven rally, valuations got out of hand, skyrocketing above historical norms. Investors were subjected to premium valuations, with tech stocks most affected. Given that most stocks have given back a significant chunk of the gains accrued over the years, most are trading at multiples not seen in years. Likewise, billionaires are increasingly buying the dips that are authentic to Warren Buffett’s idea that investors should “be fearful when others are greedy, and greedy when others are fearful.” Some people think that time is at hand.
Following the lead of some of the world’s wealthiest money managers could be a smart move for investors searching for stock ideas. Fortunately, the Securities and Exchange Commission (SEC) has made it simple to see what many of them have been up to lately through mandatory disclosures. Similarly, there are stocks that have delivered significant gains over the past year, even on the overall market turning bearish. The stocks have remained resilient amid uncertainty in US interest rates, recession concerns, and trade war spat to deliver blockbuster gains.
The best multibagger stocks to buy, according to billionaires, are of companies backed by solid core business and underlying fundamentals. The robust growth of the core business in the face of the headwinds has been the primary catalyst in the stocks, delivering gains of over 200% over the past year. While it could be challenging to find reasonably priced stocks after the blockbuster gains, some are still trading below their historical norms, making them ideal value investment plays.
A woman reading and analyzing stock market data. Photo by Artem Podrez on Pexels
Our Methodology
To compile our list of multibagger stocks, we used Finviz screener to filter the top 2000 companies that have delivered at least 200% stock price return in the last twelve months. Then, we compared the list with our proprietary database of billionaire ownership as of Q4 2024 and included the top 10 names with the highest number of billionaires that own the stock. Finally, we ranked the stocks in ascending order based on the number of billionaires who hold stakes in them.
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 Multibagger Stocks to Buy According to Billionaires
10. Kingsoft Cloud Holdings Limited (NASDAQ:KC)
Number of Hedge Fund Holders: 12
Number of Billionaire Holders: 6
1-Year Gain as of April 22: 301.46%
Kingsoft Cloud Holdings Limited (NASDAQ:KC) is a cloud service provider offering a range of cloud computing solutions. It provides a comprehensive suite of infrastructure-as-a-service (IaaS) and platform-as-a-service (PaaS) middleware and industry-specific solutions. It is turning out to be one of the best multibagger stocks to buy, according to billionaires, going by the 300% plus rally over the past year.
The rally has come on China’s leading cloud service provider, delivering solid financial results as it benefits from the artificial intelligence frenzy. For the fourth quarter of fiscal 2024, Kingsoft Cloud Holdings Limited (NASDAQ:KC) posted a 29.6% growth in net revenue to $305.8 million as full-year revenue increased 10.5% to $1.07 billion. The robust revenue growth also came as the company enjoyed strong demand from AI businesses and enterprise cloud projects increased.
In addition, Kingsoft Cloud Holdings Limited (NASDAQ:KC) is benefiting from expanded revenue from Xiaomi and Kingsoft Ecosystem. Additionally, the company recorded its first profit of RMB24.4 million, an improvement from a net loss of RMB187.6 million in the previous year same quarter. The company’s bouncing to profitability comes from public and enterprise cloud businesses increasingly harnessing its AI cloud computing.
9. IonQ, Inc. (NYSE:IONQ)
Number of Hedge Fund Holders: 28
Number of Billionaire Holders: 8
1-Year Gain as of April 22: 221.03%
IonQ, Inc. (NYSE:IONQ) is a computer hardware company that develops and sells trapped-ion quantum computers and related software. It offers access to its quantum computers through various cloud platforms and also provides services like consulting and support. The stock has rallied by about 221% over the past year on quantum computing emerging as one of Wall Street’s hottest topics.
Likewise, analysts at Davidson reiterated a Buy rating on the stock, on April 14, despite cutting the price target to $35 from $50. The price cut comes amid concerns that the current tariff regime will affect corporate investment in IonQ solutions. Nevertheless, the leader of quantum computing inked a strategic $54.5 million contract with the United States Air Force Research Lab last year. The deal underscores how governments, businesses, and academia are increasingly turning to quantum computing to address multibillion-dollar problems in healthcare, finance, and chemistry.
IonQ, Inc. (NYSE:IONQ) sentiments also received a boost on the signing of a new $21.1 million project to work with the United States Air Force Research Lab. The new deal marks an important milestone in the company’s bid to install quantum network infrastructure. The wave of quantum computing deals should continue to bolster IonQ’s revenue base. The company’s revenue has nearly doubled yearly since going public in 2021 as it increasingly addresses customer needs.
