In this article, we discuss the 10 Best UK Stocks to Buy According to Billionaires.
Like most of the world, the United Kingdom is also facing slower economic growth in 2025, fuelled by an unpredictable trading environment and high taxes. According to KPMG, there are some upsides to the UK economy this year, including solid household savings and robust public spending. However, American tariffs could limit UK GDP growth to only 0.8% during 2025 and 2026. In the short term, inflation will likely come back due to growing labor costs and skyrocketing energy prices. Nonetheless, KPMG forecasts that inflation will simmer down to the Bank of England’s target of 2% by the middle of next year.
What came as a surprise was the UK economy going up by 0.1% in Q4 2024, a welcome reprieve from the sodden economic outlook painted by market experts. This made Britain the top performer in Europe during the fourth quarter, as Italy remained flat and German and French economies shrunk. However, the UK economy fell short of the 0.6% growth in the United States. In light of these economic developments, Scott Gardner, investment strategist at JP Morgan-owned wealth manager Nutmeg, told Reuters on February 13, 2025:
“A pleasant surprise, but we’re not out of the woods yet. Beneath the surface of these latest figures, domestic demand via consumption and business investment was weaker than expected,”
As per Britain’s Office for National Statistics, wholesalers, film distributors, pubs and bars, industrial manufacturers, and pharma led the growth in December 2024. However, it should be noted that this growth was dependent on monetary support from the government and a brief pile-up in business inventories. In addition, flat spending trends were observed in households, and business investment stumbled by 3.2% in Q4. The Bank of England has now slashed its growth outlook for 2025 to 0.75%, while the National Institute of Economic and Social Research remains optimistic with a 1.5% forecast.
Investor optimism is increasing around the UK, given the rising trade tensions between the United States and Europe. While UK economic growth has lagged in recent years, BofA analysts expect it to pick up pace in 2025, projecting 1.4% growth. Analysts see positive signs like deregulation, capital spending, and potential US trade benefits. Sanjay Raja, chief UK economist at Deutsche Bank, told CNBC on March 24, 2025:
“Talk of a U.S. trade deal also surfaced in client conversations, and there was increased optimism that the U.K. may be spared from direct and widespread tariffs,”
It is interesting to note that no matter the macroeconomic conditions, the rich seem to be getting richer. So, let’s explore billionaire investment portfolios and look at the best UK stocks to buy.
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Our Methodology
To collect data for this article, we scanned Insider Monkey’s database of billionaires’ stock holdings and identified the companies headquartered in the UK but listed on American exchanges. From there, we picked the top 10 companies with the highest number of billionaire investors in Q4 2024. The stocks are ranked in ascending order based on the number of billionaire investors. We have also mentioned the value of billionaire holdings for further insight.
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. Rio Tinto Group (NYSE:RIO)
Number of Billionaire Investors: 9
Value of Billionaire Holdings: $1.19 billion
Rio Tinto Group (NYSE:RIO) is a London-based company that explores, mines, and processes mineral resources globally. The company specializes in iron ore, bauxite mining, alumina refining, and smelting, as well as mining copper, gold, silver, and molybdenum. On April 4, 2025, RIO announced that it spent A$10.3 billion in 2024 in Western Australia to boost local businesses and build its pipeline for new Pilbara mining projects. The company’s investments were primarily focused on purchasing heavy mining machinery and carrying out earthworks.
On March 6, Rio Tinto Group (NYSE:RIO) concluded its $6.7 billion acquisition of Arcadium Lithium. Arcadium will now be renamed Rio Tinto Lithium. By 2028, the new company plans to increase its Tier 1 assets by more than 200,000 tonnes annually of lithium carbonate equivalent (LCE). Arcadium shareholders will be compensated with a cash consideration of $5.85 per share held by a certain record date.
The company declared a semi-annual dividend per share of $2.25 on March 6, 2025. The dividend will be distributed on April 17, to shareholders on record as of March 7. Rio Tinto Group (NYSE:RIO) is one of the best UK stocks to buy for exposure to the mining industry.
In the fourth quarter of 2024, billionaire Ken Fisher’s Fisher Asset Management held the leading position in Rio Tinto Group (NYSE:RIO), with 17.6 million shares valued at $1 billion. Overall, 9 billionaires held stakes in RIO.
9. Birkenstock Holding plc (NYSE:BIRK)
Number of Billionaire Investors: 10
Value of Billionaire Holdings: $192.59 million
Birkenstock Holding plc (NYSE:BIRK) was founded in 1774 and is headquartered in London. The company designs, manufactures, and sells footwear. It distributes products through e-commerce, retail stores, and business-to-business channels. On February 21, BMO Capital Markets assigned an Outperform rating to BIRK and set a price target of $70. The investment firm noted that the company exhibited solid growth across all segments, outperforming industry averages.
On February 20, Birkenstock Holding plc (NYSE:BIRK) reported financial results for the first quarter of fiscal year 2025 ending December 31, 2024. The revenue came in at €362 million, up 19% for the quarter, exceeding the guidance of 15-17% growth. Revenue growth was fuelled by robust demand for Birkenstock products across all categories and distribution channels. BIRK recorded a net profit of €20 million for Q1 FY 2025, up from a loss of €7 million in the preceding quarter. As of December 31, 2024, Birkenstock Holding had €299 million in cash and cash equivalents and a net leverage of 1.9x, up slightly due to seasonal factors compared to the previous quarter. The company is prioritizing debt reduction using free cash flow this year.
According to Insider Monkey’s Q4 data, 10 billionaire investors were bullish on Birkenstock Holding plc (NYSE:BIRK), making it one of the best UK stocks to buy.
