In this article, we discuss 5 stocks to buy according to billionaire Ken Fisher. If you want to read our detailed analysis of Fisher’s investment philosophy and performance, go directly to the 10 Best Stocks to Buy Now According to Billionaire Ken Fisher.
5. Visa Inc. (NYSE:V)
Fisher Asset Management’s Stake Value: $2.68 billion
Percentage of Fisher Asset Management’s 13F Portfolio: 1.89%
Number of Hedge Fund Holders: 166
Visa Inc. (NYSE:V) is an American multinational financial services corporation that facilitates electronic funds transfers throughout the world. As of Q2 2022, Fisher Asset Management owned about 13.6 million Visa Inc. (NYSE:V) shares, worth $2.68 billion, representing 1.89% of the value of the fund’s 13F securities.
Earlier this July, Mizuho analyst Dan Dolev raised the price target on Visa Inc. (NYSE:V) to $220 from $215 and kept a ‘Neutral’ rating on the shares of the company. According to Dolev, U.S. debit growth was stronger at Visa Inc. (NYSE:V) in Q2, which led to a divergence in growth in favor of the company.
Among the hedge funds tracked by Insider Monkey, Chris Hohn’s TCI Fund Management is the leading position holder in Visa Inc. (NYSE:V), with almost 20 million shares worth around $4 billion. Overall, Visa Inc. (NYSE:V) was found in 166 hedge funds’ portfolios at the end of Q2 2022, compared to 159 funds in the prior quarter.
Here is what Polen Global Growth Fund had to say about Visa Inc. (NYSE:V) in its Q1 2022 investor letter:
“We added to both Visa and Mastercard during the final quarters of 2021, based on the belief that both businesses were trading at attractive prices and poised to deliver, double-digit returns over the next three to five years. Cross-border transactions–a highly profitable business segment for both companies–represent roughly 10% of Visa and Mastercard’s volumes and 25% of their gross revenues, so lockdowns have severely impacted this segment due to stifled travel. While it was impossible to know when people would begin traveling again, we accepted this reality with the belief that travel would eventually return. Both companies have commented that as soon as a country or geography reopens, cross-border volumes reignite, amplifying each business’s growth and profitability. We think these near- term headwinds have created an attractive long-term investment opportunity.”
4. Alphabet Inc. (NASDAQ:GOOG)
Fisher Asset Management’s Stake Value: $4.56 billion
Percentage of Fisher Asset Management’s 13F Portfolio: 3.22%
Number of Hedge Fund Holders: 153 (GOOG), 191 (GOOGL)
Alphabet Inc. (NASDAQ:GOOG) is an American multinational technology conglomerate holding company that operates as the parent company of leading technology brands like Google and YouTube, among other notable names. A large position in Alphabet’s class A shares accounts for about 3.22% of Fisher Asset Management’s portfolio, with the hedge fund owning a $4.56 billion stake in the shares.
On August 3, Tigress Financial analyst Ivan Feinseth raised the price target on Alphabet Inc. (NASDAQ:GOOG) to $186 from $183 and maintained a ‘Strong Buy’ rating on the shares, citing his view that the tech giant’s recently reported Q2 results highlight the resiliency of its core business in Cloud and Search. The analyst also states that Alphabet’s ongoing investment in Artificial Intelligence will further drive “increasingly focused and helpful experiences for users and businesses.”
Alphabet Inc. (NASDAQ:GOOG)’s class C shares were held by 153 hedge funds at the end of the second quarter of 2022, while its class A shares were owned by 191. Among the hedge funds being tracked by Insider Monkey, London-based investment firm TCI Fund Management is a leading shareholder in Alphabet Inc. (NASDAQ:GOOG), with 2.3 million class C shares worth more than $6.6 billion.
Here is what Arch Capital had to say about Alphabet Inc. (NASDAQ:GOOG) in its Q2 2022 investor letter:
“In May we decided to buy Alphabet (parent company of Google, YouTube, and Android). Our thesis was simple. Alphabet has billions of locked-in users around the globe with businesses like Search, Maps, and YouTube that should grow in-line or faster than worldwide GDP. With all the cash these businesses generate, management is able to reinvest in Google Cloud, Other Bets projects like Waymo, and return cash to shareholders via share repurchases. At an enterprise value-to-free cash flow (EV/FCF) of around 20 at the time of our purchase, we believe this sets up shareholders for low risk 15%+ returns over the next five years.”
3. Amazon.com, Inc. (NASDAQ:AMZN)
Fisher Asset Management’s Stake Value: $5.16 billion
Percentage of Fisher Asset Management’s 13F Portfolio: 3.65%
Number of Hedge Fund Holders: 252
Fisher Asset Management acquired a position in Amazon.com, Inc. (NASDAQ:AMZN), the largest e-commerce company in the world and one of the Big Five tech companies, in the first quarter of 2011. The hedge fund raised its Amazon.com, Inc. (NASDAQ:AMZN) stake by a staggering 1,959% in Q2, holding 48.6 million shares worth $5.16 billion, representing 3.65% of the fund’s total 13F securities.
Bernstein analyst Mark Shmulik maintained an ‘Outperform’ rating and a price target of $160 on Amazon.com, Inc. (NASDAQ:AMZN) shares on August 24. The analyst believes things “are looking up” in a challenging macro environment as “we move past tougher compares” and that the e-commerce giant remains well positioned to retake its share in the second half of 2022. Shmulik states that he is “encouraged” by the company’s progress in clearing up its missteps, and that progress on OI margins will be the key catalyst for outperformance in the second half of the year.
According to Insider Monkey’s Q2 data, 252 hedge funds were bullish on Amazon.com, Inc. (NASDAQ:AMZN) on June 30, compared to 271 funds in the previous quarter. Skye Global Management is a prominent position holder in the company, with 15.4 million shares worth $1.6 billion.
Here is what Vulcan Value Partners specifically said about Amazon.com, Inc. (NASDAQ:AMZN) in its Q2 2022 investor letter:
“Amazon.com, Inc. (NASDAQ:AMZN) has three components to its business model: online retail, cloud-based Amazon Web Services (AWS), and online advertising. We believe that the stock price has declined primarily due to its disappointing online retail results. Retail was extremely successful during COVID, and Amazon spent immensely to protect the consumer experience including buying extra inventory, buying inventory ahead of time, securing alternate shipping routes and adding extra warehouse space. We believe this long-term behavior has been successful for Amazon as customer retention and engagement remain at high levels. Post-COVID, the company is in the process of rightsizing its cost structure, and it is facing a tough period of comparisons. The retail segment is the smallest contributor to our overall value. The majority of the company’s value is in AWS, which we believe is one of the best businesses in the world. AWS’ revenue is expected to be approximately $80 billion this year, which is nearly double the amount in 2020. The company’s online advertising has turned into an attractive business that did not exist 15 years ago, and we estimate its revenue to be around $40 billion this year.”
2. Microsoft Corporation (NASDAQ:MSFT)
Fisher Asset Management’s Stake Value: $7.37 billion
Percentage of Fisher Asset Management’s 13F Portfolio: 5.21%
Number of Hedge Fund Holders: 258
Microsoft Corporation (NASDAQ:MSFT) is one of the largest cloud infrastructure services providers and a software giant that provides computer software and electronics. On July 26, the company reported that its revenue grew 12.38% year-over-year to come in at $51.9 billion while its net income was $72.7 billion, up 19% on a year-over-year basis. Ken Fisher’s hedge fund currently owns 28.7 million shares of Microsoft Corporation (NASDAQ:MSFT), valued at over $7.37 billion. The company represented 5.21% of the fund’s portfolio weighting.
On August 11, Guggenheim analyst John DiFucci initiated coverage of Microsoft Corporation (NASDAQ:MSFT) with a ‘Neutral’ rating and a $292 price target. According to DiFucci, the tech firm could grow revenue and free cash flow in the mid-teens on average in the future on account of the consensus numbers in Azure and Office Commercial 365. On the other hand, he continues to see declines in Windows that he believes are still “not fully reflected in consensus estimates,” stating that he sees a balanced risk/reward at current levels.
At the close of Q2 2022, 258 hedge funds held stakes in Microsoft Corporation (NASDAQ:MSFT) worth $56 billion, compared to 259 hedge funds in the previous quarter with stakes worth $65.6 billion. Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital held one of the largest positions in the tech giant in Q2, with a stake valued at over $4.6 billion.
Carillon Tower Advisers mentioned Microsoft Corporation (NASDAQ:MSFT) in its Q1 2022 investor letter. Here is what the firm had to say:
“Stock selection contributed the most while sector allocation was also positive. An underweight to communication services and an overweight to energy helped performance, while an underweight to consumer staples and an overweight to materials detracted. Stock selection was strong within healthcare and materials but was weak within information technology and industrials. Microsoft (NASDAQ:MSFT) reported positive results driven by personal computing strength, but analysts were especially positive on its growth outlook for its Azure cloud-computing services.”
1. Apple Inc. (NASDAQ:AAPL)
Fisher Asset Management’s Stake Value: $8.97 billion
Percentage of Fisher Asset Management’s 13F Portfolio: 6.35%
Number of Hedge Fund Holders: 128
Apple Inc. (NASDAQ:AAPL) is an American multinational technology company that specializes in consumer electronics, software and online services. Ken Fisher added Apple Inc. (NASDAQ:AAPL) to his portfolio back in Q4 2010. As of the second quarter of 2022, his hedge fund holds 65.7 million shares of Apple Inc. (NASDAQ:AAPL), worth $8.97 billion, making up 6.35% of his total portfolio value.
On August 19, KeyBanc analyst Brandon Nispel raised his price target on Apple Inc. (NASDAQ:AAPL) to $185 from $177 and maintained an ‘Overweight’ rating on the shares. The analyst recommends owning Apple stock and raised the price target “based on strong trends.” According to Nispel, July ended up being the strongest sequential growth month of the company’s fiscal Q4, which, based on his remarks, appears to be off to a strong start.
Apple Inc. (NASDAQ:AAPL) issued its quarterly earnings report for its fiscal third quarter of 2022 on July 28. According to the report, the tech firm had EPS of $1.20, beating market estimates by $0.04. Additionally, the company’s revenue for the quarter came in at just under $83 billion.
According to Insider Monkey’s data, 130 hedge funds were bullish on Apple Inc. (NASDAQ:AAPL) at the end of Q2, down from 132 funds in the prior quarter. Warren Buffett’s Berkshire Hathaway was Apple Inc. (NASDAQ:AAPL)’s biggest shareholder, owning 895 million shares worth approximately $122 billion.
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