5 Best Stocks to Buy in 2024 According to Billionaire D.E. Shaw

2. Apple Inc. (NASDAQ:AAPL)

Value of D.E. Shaw’s 13F Position: $1.63 billion

Number of Hedge Fund Shareholders: 137

D.E. Shaw increased his stake in Apple Inc. (NASDAQ:AAPL) by 7% during the third quarter, to $1.6 billion at the end of the third quarter. Apple’s stock has risen 46% in the last year, thanks to strong financial results and a promising earnings outlook. Apple exceeded revenue and earnings expectations for the third quarter, and Wall Street expects earnings to rise steadily in the coming years.

Hayden Capital, a value-oriented investment firm, mentioned a few stocks, including Apple, in its third-quarter investor letter. Here is what the firm siad: 

“Even Berkshire Hathaway’s most famous investment of the last decade – Apple Inc. (NASDAQ:AAPL) – was based on a similar set up. When Berkshire invested in 2016, Apple’s subscription revenues were just starting to cross ~10% of total revenues. Today, that figure is ~25%.

While operating income has grown +90% from 2016 to 2023, the valuation multiple itself has expanded by ~300%, from ~6x EV/EBIT to ~24x EV/EBIT today.

Investors have evolved their perception of Apple’s products – from that of a “fad” hardware company at risk of competition, to that of a “consumer staple”, a necessary part of a household’s budget…” (Click here to read the full text).