In this article we discuss the 5 best stocks to buy according to billionaire David Harding. If you want to read our detailed analysis of the banking industry, go directly to 10 Best Stocks to Buy According to Billionaire David Harding.
At Insider Monkey we leave no stone unturned when looking for the next great investment idea. For example, lithium mining is one of the fastest growing industries right now, so we are checking out stock pitches like this emerging lithium stock. We go through lists like the 10 best hydrogen fuel cell stocks to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our homepage. Keeping this in mind, let’s take a look at Harding’s top stock picks:
5. CME Group Inc. (NASDAQ: CME)
Value: $10,947,000
Percent of David Harding’s 13F Portfolio: 0.79%
Number of Hedge Fund Holders as of Q1: 60
CME Group Inc. (NASDAQ: CME) is an American global markets company, which provides electronic trading on its CME Globex platform. The company also operates a central counterparty clearing provider, CME Clearing, and is one of the biggest financial exchanges. The pandemic affected the stock due to the lower volumes in energy and interest rate contracts over the recent quarters. However, since late March, the stock has gained 30% from seeing an all-time low of $140. Moreover, in 2020, the revenue of the company stood at $4.9 billion, with an operating income of $2.6 billion.
CME Group Inc. (NASDAQ: CME) has increased its dividend for the last 11 years, and this year its dividend is raised to $0.90 per share. Also, it has a five-year annual growth rate of about 10%.
Cooper Investors Global Equities Fund has mentioned CME Group Inc. (NASDAQ: CME) in their Q1 2021 investor letter. Here is what the fund has to say:
“CME has been owned by the portfolio for five years. CME’s strategic positioning as a monopolistic global financial exchange operator will continue to afford the business a highly attractive margin profile. CME is well managed however we can no longer identify clear value latency opportunities for the management team to execute against and so decided to exit our position.”
4. Dow Inc. (NYSE: DOW)
Value: $11,078,000
Percent of David Harding’s 13F Portfolio: 0.79%
Number of Hedge Fund Holders as of Q1: 41
Dow Inc. (NYSE: DOW) is an American commodity chemical company that produces and distributes chemical products. The company combines science and technology to develop solutions. Winton Capital owns 199,597 shares of the stock worth $11 million, making it one of the best stocks to buy according to billionaire David Harding. Over the past quarter, shares of Dow Inc. (NYSE: DOW) have risen 18.03%. In 2020, the company generated a revenue of $38.5 billion, which is expected to grow by 1.9% in the coming year.
In the last 12 months, Dow Inc. (NYSE: DOW) paid a total of $2.80 per share as dividends, and its next dividend payment will be $0.70 per share.
3. Varian Medical Systems, Inc. (NYSE: VAR)
Value: $13,102,000
Percent of David Harding’s 13F Portfolio: 0.94%
Number of Hedge Fund Holders as of Q1: 40
Varian Medical Systems, Inc. (NYSE: VAR) is an American company that sells, manufactures, and designs medical equipment. It is one of the best stocks to buy according to billionaire David Harding because the shares of the company have grown by 22.4%, compared with the industry’s 15.9% rally in a year. Winton Capital owns nearly 74,866 shares of the stock, worth $13.1 million.
In November 2020, Varian Medical Systems, Inc. (NYSE: VAR) signed a new $10 million investment and partnership agreement with COTA, Inc., another Boston-based company dealing in oncology. In 2020, the company’s revenue stood at $3.1 billion, 2% down from 2019. Millennium Management is the top holder of this fund, with shares worth $35.1 million.
2. Apple Inc. (NASDAQ: AAPL)
Value: $14,856,000
Percent of David Harding’s 13F Portfolio: 1.07%
Number of Hedge Fund Holders as of Q1: 127
Apple Inc. (NASDAQ: AAPL) is second on our list of the best stocks to buy according to billionaire David Harding. It is a global technology company that designs, manufactures, and sells digital gadgets and is one of the first American publicly traded companies to be worth $1 trillion in value. As of Q1, Winton Capital has 111,957 shares of the company worth $14.8 million. However, Winton Capital has decreased its stake in Apple Inc. (NASDAQ: AAPL) by 35% in Q1.
The Q2 reports of the company show a record revenue of $86.9 billion, up 54% year over year, with $1.40 earnings per share. The dividend per share for the quarter was $0.21. Berkshire Hathaway Inc. (NYSE: BRK-B) owns $120 billion worth of shares in Apple Inc. (NASDAQ: AAPL), which equals about 42% of its overall investment portfolio.
1. Berkshire Hathaway Inc. (NYSE: BRK-B)
Value: $73,737,000
Percent of David Harding’s 13F Portfolio: 5.32%
Number of Hedge Fund Holders as of Q1: 111
Berkshire Hathaway Inc. (NYSE: BRK-B) is an American multinational holding company, which owns a business in insurance, energy generation and distribution, and manufacturing. Since the 1960s, the company’s share price has risen by an annual average of 20%, making it one of the best stocks to buy according to billionaire David Harding. Winton Capital owns 212 shares of Berkshire Hathaway Inc. (NYSE: BRK-B), worth $73,737 as of Q1.
Vltava Fund’s Q1 investor letter mentioned Berkshire Hathaway Inc. (NYSE: BRK-B). Here is what the fund said:
“Despite the considerable rise in stock markets over the past year, there are still many attractive opportunities. Human nature also is playing a bit into our hands. Investor crowds often chase popular stocks, hot IPOs, or mysterious SPACs and completely leave aside stocks they consider boring and not sexy enough. A typical example of this category is our long-term largest position in Berkshire Hathaway. Since we bought it for the first time, its price has nearly quadrupled and yet it remains just as undervalued today as it was at that time. Considering the current rate at which it is buying back its own shares and the amount of cash that Berkshire Hathaway has, my greatest wish as a shareholder is for the company’s share price to remain as low as possible for as long as possible.”
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