10 Safe Stocks to Buy According to Billionaire Chilton

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1. Microsoft Corporation (NASDAQ:MSFT)

Chilton Investment Company’s Stake Value: $365,858,112

 Number of Hedge Fund Holders: 293

Topping our list of safe stocks to buy according to billionaire Chilton is Microsoft Corporation (NASDAQ:MSFT). Microsoft Corporation (NASDAQ:MSFT) stands out as a compelling investment due to its dominant position in cloud computing through Azure, which continues to drive significant revenue growth. Microsoft Corporation (NASDAQ:MSFT)’s diverse portfolio, spanning software, gaming, and AI, offers multiple revenue streams and provides stability against market fluctuations.

From April to June 2024, Microsoft Corporation (NASDAQ:MSFT) reported total revenues of about $64.7 billion, marking a 15.2% increase compared to the same period in the previous year, when revenues were $56.2 billion. This figure slightly exceeded analysts’ expectations, which had forecasted $64.4 billion. According to Cavenagh Research, updated projections for Microsoft Corporation (NASDAQ:MSFT)’s earnings per share (EPS) are expected to reach approximately $11.3 in 2024, $12.9 in 2025, and $13.4 in 2026.

Microsoft Corporation (NASDAQ:MSFT) is one of the best-run legacy businesses with competitive advantages in office productivity software, cloud, and AI. Its Azure cloud business is consistently gaining market share and Microsoft can leverage its tech prowess to deliver improved user experience in its office productivity tools. Microsoft Copilot is now integrated into Microsoft 365, Dynamics 365, and GitHub, and the company is executing well on democratizing AI.

It’s one of the safest stocks to buy according to Richard Chilton. Over the past 10 years, Microsoft’s revenue has compounded at ~11% annually, and its net income has grown at a CAGR of ~15%. Chilton Investment Company owned 869,600 shares of Microsoft Corporation (NASDAQ:MSFT), valued at $365,858,112.

While we acknowledge the potential of Microsoft Corporation (NASDAQ:MSFT), our conviction lies in the belief that under the radar AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than NVDA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: Analyst Sees a New $25 Billion “Opportunity” for NVIDIA and Jim Cramer is Recommending These 10 Stocks in June.

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