In this article, we discuss the 10 best Stan Druckenmiller stocks other billionaires are also piling into. You can skip our detailed analysis of Druckenmiller’s hedge fund and its performance over the years and go directly to read 5 Best Stan Druckenmiller Stocks Other Billionaires Are Also Piling Into.
Billionaire Stanley Druckenmiller is overly skeptical about the stock market outlook, having become “really nervous” about the economy. He joins a growing list of high-profile investors that are sounding the alarm bells after one of the biggest rallies in recent history. US equities have been on a roll in 2023, with the S&P 500 gaining about 21% in the period.
Druckenmiller is best remembered for “breaking” the Bank of England in partnership with famed investor George Soros by betting against the British Pound in 1992. The duo ended up making over $1 billion on the trade. Nevertheless, his track record at Duquesne Capital, a hedge fund he helped found, has propelled him to stardom status on Wall Street.
Druckenmiller believes earnings will be flat next year, something that could take a significant toll on the market’s overall size. In addition, he is concerned over the forces influencing the economy and the overall stock market outlook.
Druckenmiller believes Janet Yellen has been behind the biggest blunder in the history of America’s treasury in failing to take advantage of the ultra-low interest rates era.
“When rates were practically zero, every Tom, Dick and Harry in the U.S. refinanced their mortgage… corporations extended [their debt],” he said. “Unfortunately, we had one entity that did not: the U.S. Treasury.”
Stan Druckenmiller
Our Methodology
To compile the list, we first looked at Duquesne Capital 13F filings and selected the top stocks. We then ranked the stocks based on the number of billionaires that hold stakes in them.
Best Stan Druckenmiller Stocks Other Billionaires Are Also Piling Into
10. News Corporation (NASDAQ:NWS)
Number of Billionaires Holding Stakes: 10
Duquesne Capital’s Equity Stakes: $95.73 Million
News Corporation (NASDAQ:NWS), a New York-based company, provides media and information services and produces and delivers compelling content and other consumer products and services.
News Corporation (NASDAQ:NWS) remains one of the best Stan Druckenmiller stocks other billionaires are piling into in the communication service sector. Duquesne Capital increased its stake in News Corporation (NASDAQ:NWS) by 6% in Q3 2023 to $95.73 million and is poised to benefit from the 0.87% yield on offer.
9. Lamb Weston Holdings, Inc. (NYSE:LW)
Number of Billionaires Holding Stakes: 12
Duquesne Capital’s Equity Stakes: $168.84 Million
Lamb Weston Holdings, Inc. (NYSE:LW) is one of the consumer defensive plays that billionaires are increasingly pilling into. Lamb Weston Holdings, Inc. (NYSE:LW) produces, distributes, and markets frozen potato products worldwide. It offers frozen potatoes, commercial ingredients, and appetizers under the Lamb Weston brand, as well as under various customer labels.
8. Teck Resources Ltd (USA) (NYSE:TCK)
Number of Billionaires Holding Stakes: 13
Duquesne Capital’s Equity Stakes: $176.93 Million
Teck Resources Ltd (USA) (NYSE:TCK) has to be one of the best Stan Druckenmiller stocks other billionaires are piling into for anyone eying exposure to the basic materials sector. Teck Resources Ltd (USA) (NYSE:TCK) explores for, acquires, develops, and produces natural resources.
Teck Resources Ltd (USA) (NYSE:TCK) has gained about 5% year to date amid solid product demand amid the booming global economy. While trading with a P/E of 11, the stock offers a solid 1.06% yield for investors seeking to generate passive income. Duquesne Capital increased its stake in Teck Resources Ltd (USA) (NYSE:TCK) by 21% to $176.93 million in Q3 2023.
7. Coupang, Inc. (NYSE:CPNG)
Number of Billionaires Holding Stakes: 15
Duquesne Capital’s Equity Stakes: $355.37 Million
Coupang, Inc. (NYSE:CPNG) is an internet retail giant in Druckenmiller’s portfolio that billionaires are also piling into as a consumer cyclical investment play. Coupang, Inc. (NYSE:CPNG) operates e-commerce through its mobile applications and internet websites in South Korea. It offers products in various categories of apparel, beauty products, fresh food, electronics, and groceries.
Even though Coupang, Inc. (NYSE:CPNG) is up by 7.6%, underperforming the S&P 500, which is up by about 21%, about 15 billionaires hold stakes in the company. Druckenmiller’s hedge fund held stakes worth $355.37 million in Coupang, Inc. (NYSE:CPNG) as of the end of the third quarter.
6. T-Mobile Us Inc (NASDAQ:TMUS)
Number of Billionaires Holding Stakes: 17
Duquesne Capital’s Equity Stakes: $105.97 Million
Bellevue, Washington-based T-Mobile Us Inc (NASDAQ:TMUS) is one of the largest wireless carriers in the US that provides mobile communications services. T-Mobile US Inc (NASDAQ:TMUS) offers customers voice, messaging, and data services in postpaid, prepaid, wholesale, and other services.
T-Mobile Us Inc (NASDAQ:TMUS) is one of the best Stan Druckenmiller stocks other billionaires are piling into for exposure in the communication services sector. About 17 billionaires hold stakes in the company; T-Mobile US Inc (NASDAQ:TMUS) has gained 13% year to date while offering a yield of 0.42%. Duquesne Capital trimmed its stake in the company by 36% in Q3 2023 to $105.97 million.
Here is what ClearBridge Dividend Strategy said about T-Mobile US, Inc. (NASDAQ:TMUS) in its Q3 2023 investor letter:
“During the quarter we initiated positions in two new names: T-Mobile US, Inc. (NASDAQ:TMUS) and Gilead Sciences. T-Mobile is the best-in-class player in the wireless space, delivering the strongest growth with the lowest cost structure and the best consumer proposition. T-Mobile’s strength is rooted in its advantaged competitive position. Its superior spectrum holdings enable it to provide better wireless service at meaningfully lower cost. T-Mobile’s annual capital expenditures run about $10 billion, on the order of half the amount its peers must spend. Due to its lower cost structure, T-Mobile can undercut its competitors on price while still generating compelling profitability and returns.
This combination — superior service at lower prices — has enabled T-Mobile to outgrow its competition. In the three years since completing its merger with Sprint, T-Mobile has grown its post-paid subscriber base by about 22%. Over the same period, AT&T’s has grown by about 14%, while Verizon’s by less than 5%.
Given the high fixed-cost nature of the wireless business, these steady increases in revenue growth have led to outsize increases in profits and free cash flow. Free cash flow in 2023 is expected to come in around $13.5 billion, up from less than $8 billion last year. In 2024 free cash flow is expected to grow by over 20% to approximately $17 billion — providing a 10% yield based on today’s stock price.
We have long admired T-Mobile, but until recently the stock did not pay a dividend. The company announced its inaugural dividend in September, and we bought the stock shortly thereafter. The initial yield is about 2%, and it is expected to grow about 10% per year.”
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Disclosure: None. 10 Best Stan Druckenmiller Stocks Other Billionaires Are Also Piling Into is originally published on Insider Monkey.