Below is the list of the 5 best stocks to buy according to billionaire Ken Fisher. For a detailed discussion about Ken Fisher’s investment strategy and market outlook, go directly to the 10 Best Stocks to Buy According to Billionaire Ken Fisher.
5. Alphabet Inc. (NASDAQ: GOOGL)
Number of Hedge Fund Holders: 190
The shares of communication services company Alphabet Inc. (NASDAQ: GOOGL) stands among the top performers of this year amid economic reopening and prospects for higher ad revenue. During the second quarter, billionaire Ken Fisher increased his position by 3% in Google to 1.77 million shares worth around $4.3 billion.
In its Q2 2021 investor letter, Alger Spectra Fund said that Alphabet Inc is a smart long-term investment. Here is what Alger Spectra Fund stated:
“Alphabet Inc. was among the top contributors to performance. Alphabet’s Google is a leading search engine, which has allowed the company to become a beneficiary of the shift of advertising dollars from traditional mediums like television, radio, and newspapers to digital platforms. The company is also a leader in implementing artificial intelligence and developing autonomous vehicles and owns the highly trafficked YouTube service. Alphabet contributed to performance due to a strong quarterly report that was highlighted by a meaningful acceleration in advertising revenues reflecting a robust, broad-based demand environment with notable strength in retail and improvement in travel-related businesses. Profitability was also better than expected as the revenue growth exceeded the rate at which costs for staffing, office expenses, travel, and entertainment increased.”
4. Visa Inc. (NYSE: V)
Number of Hedge Fund Holders: 162
The payment technology company Visa Inc. (NYSE: V) continues generating steady returns for investors this year, driven by easing traveling restrictions and growth in digital payments. It is the fourth largest stock holding of the Fisher Asset Management portfolio, according to the latest 13F filings. At the end of the second quarter, the firm held 23.6 million shares of Visa, representing 3.47% of the entire portfolio.
Visa has experienced a decrease in activity from the world’s largest hedge funds of late. Visa was in 162 hedge funds’ portfolios at the end of June compared to 164 positions in the previous quarter.
3. Amazon.com, Inc. (NASDAQ: AMZN)
Number of Hedge Fund Holders: 271
The world’s largest e-commerce platform Amzon.com Inc. (NASDAQ: AMZN) is the third-largest stock holding of billionaire Ken Fisher’s portfolio. At the end of the second quarter, his firm held a $6.45 billion worth of stake in the e-commerce platform. Shares of Amazon bounced back during the second quarter after experiencing volatility at the beginning of the year.
In its second-quarter investor letter, Nelson Capital Management, an investment management firm, commented on a few stocks including Amazon. Here is what Nelson Capital Management stated:
“In the consumer discretionary sector, we trimmed pandemic winners in favor of companies we believe will outperform in a recovery period. We reduced our position in Amazon following its stellar performance through the pandemic. Though we believe online shopping is here to stay, we think some portion of consumer wallet share will transition to services and experiences.”
2. Microsoft Corporation (NASDAQ: MSFT)
Number of Hedge Fund Holders: 238
The technology giant Microsoft is among the most favorite stock picks of billionaire Ken Fisher. His hedge fund has been holding a position in MSFT over the last two decades. At the end of the second quarter, Fisher Asset Management held 24.8 million shares of Microsoft worth around $6.7 billion. Microsoft’s sustainable dividend growth along with steady share price appreciation makes it one of the best stocks to hold for the long term.
Alger, an investment management firm, highlighted a few stocks including Microsoft in the second quarter investor letter. Here is what Alger stated:
“Microsoft Corp. was among the top contributors to performance. Microsoft is a Positive Dynamic Change beneficiary of corporate America’s transformative digitization. Microsoft’s enterprise cloud product, Azure, is rapidly growing and accruing market share. Recently, Microsoft reported that Azure grew 50% during the past quarter.
This high-unit volume growth is a primary driver of the company’s higher share price, but Microsoft’s strong operating execution has enabled notable margin expansion that has also helped to increase forward earnings estimates. We believe Microsoft’s subscription-based software offerings and cloud computing services have a durable growth profile because they enhance customers’ growth initiatives and help them to diminish costs. Additionally, investors appreciate Microsoft’s strong free cash flow generation and its return of cash to shareholders in the form of dividends and share repurchases. Microsoft’s chief executive officer, furthermore, reiterated his comment from a few months back, when he said he expects technology spending as a percent of GDP to jump from about 5% today to 10% in a few years and that Microsoft is well-positioned to capture market share.”
1. Apple Inc. (NASDAQ: AAPL)
Number of Hedge Fund Holders: 138
Fisher Asset Management held $8.88 billion worth of stake in Apple Inc. (NASDAQ: AAPL) at the end of the second quarter, accounting for 5.58% of the 13F portfolio. Ken Fisher first initiated a position in Apple in 2005 and currently holds 64.85 million shares of the world’s largest technology giant. Shares of iPhone-maker soared 16% in the last three months.
Prominent investors were in an optimistic mood. The number of bullish hedge fund positions increased by 11 recently. Apple was in 138 hedge funds’ portfolios at the end of June compared to 127 positions in March.
You can also take a peek at 10 Stocks that Crushed Earnings Expectations and 10 Cheap Dividend Aristocrats to Buy Now.
