In this piece, we’ll take a look at the 5 blue chip stocks to buy according to billionaire Jim Simons. For more stocks, the risk/reward and the methodology of this list, head on to 10 Blue Chip Stocks to Buy According to Billionaire Jim Simons.
5. Berkshire Hathaway Inc. (NYSE:BRK-B)
Renaissance Technologies Stake Value: $488 million
Percentage of Renaissance Technologies’ Portfolio: 0.57%
Number of Hedge Fund Holders: 109
Berkshire Hathaway Inc. (NYSE:BRK-B) is a holding corporation whose subsidiaries engage in a variety of businesses. Insurance is the company’s core business division, which is principally managed by Geico, Berkshire Hathaway Reinsurance Group, and Berkshire Hathaway Primary Group.
Barron’s recently reported that it is a good time to buy Berkshire Hathaway Inc. (NYSE:BRK-B) as the company has never been in better shape. Its stock looks appealing after pulling back more than 15% from its record high in March. The conglomerate’s operating profits were up 22% in the second quarter, excluding foreign-exchange gains, powered by a 56% gain in investment income. Berkshire’s annual operating income is running at more than $30 billion after taxes, the author notes.
Investment management company Diamond Hill Capital mentioned Berkshire Hathaway Inc. (NYSE:BRK-B) in its “Diamond Hill Large Cap Fund” first-quarter 2022 investor letter. Here is what the firm had to say:
“Diversified holding company Berkshire Hathaway reported strong earnings during the quarter and benefited from continued share repurchases below intrinsic value. The company also announced significant deployments of excess cash during the quarter, including the acquisition of Alleghany and a large increase in its stake in Occidental Petroleum.”
At the end of Q2 2022, 109 hedge funds tracked by Insider Monkey owned Berkshire Hathaway Inc. (NYSE:BRK-B). Bill & Melinda Gates Foundation Trust was the stock’s leading stakeholder in Q2, owning Berkshire Hathaway Inc. (NYSE:BRK-B) shares worth over $9.4 billion.
4. The Hershey Company (NYSE:HSY)
Renaissance Technologies Stake Value: $789 million
Percentage of Renaissance Technologies’ Portfolio: 0.93%
Number of Hedge Fund Holders: 43
The Hershey Company (NYSE:HSY) is the top U.S. confectionery maker and controls around 46% of the domestic chocolate market. Over the past 85 years, the company’s product line has evolved to include 100 brands, including Reese’s, Kit Kat, Kisses, and Ice Breakers. Hershey’s goods are offered in around 80 countries, although only a high-single-digit percentage of sales come from international markets, such as Brazil, India, and Mexico.
Recently, Cowen analyst Brian Holland initiated coverage of The Hershey Company (NYSE:HSY) with a Market Perform rating and $238 price objective. The analyst believes that the market has adequately valued the company’s “excellent execution, successful diversification, best-in-class margins, pricing power, and reduced relative overseas exposure.” In addition, Holland’s brand reinvestment “should keep margins under control,” the analyst informed investors in a research report.
At the end of Q2 2022, 43 hedge funds tracked by Insider Monkey owned The Hershey Company (NYSE:HSY). Renaissance Technologies was the stock’s leading stakeholder in Q2, owning The Hershey Company (NYSE:HSY) shares worth over $789 million.
3. Apple Inc. (NASDAQ:AAPL)
Renaissance Technologies Stake Value: $844 million
Percentage of Renaissance Technologies’ Portfolio: 1%
Number of Hedge Fund Holders: 128
Apple Inc. (NASDAQ:AAPL) creates, manufactures, and distributes smartphones, personal computers, tablets, wearables, and accessories, in addition to selling a variety of accessories. Additionally, the business provides payment, digital content, cloud, and advertising services.
Wamsi Mohan, an analyst at Bank of America, reported that his monitoring of iPhone ship dates on Apple’s website and several carrier websites reveals that, as of September 12, release dates for the iPhone 14 Pro and Pro Max models are extended compared to this time last year. The analyst noted that the extended lead times are “especially impressive” given that Apple has boosted iPhone prices in several markets to mitigate the impact of the stronger U.S. dollar. The analyst regards the early pre-order data as encouraging for Apple Inc. (NASDAQ:AAPL) and maintains a buy rating and $185 price target on the stock.
Here is what Wedgewood Partners had to say about Apple Inc. (NASDAQ:AAPL) in its second-quarter 2022 investor letter:
“Apple grew revenues +9%, driven by +17% growth in the Services segment. While iPhone revenues grew a modest +5%, it was on an exceptional year ago comparison of +66%. iPhone continues to capture most industry smartphone profits by focusing on high-end price tiers. Apple is taking nearly two-thirds of the revenue share in the premium ($400 and above) smartphone segment. Further, most of the growth was driven by expansion in the “ultra-premium” price tier of $1000 or more per unit.[1] As we have highlighted in the past, Apple’s relentless focus on the development and integration between hardware (especially integrated circuits) and software continues to add significant value for customers of its products and services. We expect this favorable competitive dynamic to continue for the foreseeable future.”
At the end of Q2 2022, 128 hedge funds tracked by Insider Monkey owned Apple Inc. (NASDAQ:AAPL). Berkshire Hathaway was the stock’s leading stakeholder in Q2, owning Apple Inc. (NASDAQ:AAPL) shares worth over $122 billion.
2. Meta Platforms, Inc. (NASDAQ:META)
Renaissance Technologies Stake Value: $884 million
Percentage of Renaissance Technologies’ Portfolio: 1.04%
Number of Hedge Fund Holders: 184
With 2.5 billion monthly active members, Meta Platforms, Inc. (NASDAQ:META) is the largest social network online. The company’s ecosystem primarily comprises of the Facebook app, Instagram, Messenger, and WhatsApp, as well as several services around these products.
Meta Platforms, Inc. (NASDAQ:META) reported revenue of $28.82 billion, recording a decline of 0.88% YoY and posted a normalized EPS of $2.46, missing consensus estimates by $0.09. The CEO of Meta Platforms, Inc. (NASDAQ:META), Mark Zuckerberg, while speaking to investors on the second quarter results, commented:
“In this environment, we’re focused on making the long-term investments that will position us to be stronger coming out of this downturn, including our work on our discovery engine and Reels, our new ads infrastructure and the metaverse. And we’re also focused on being rigorous about measuring returns and sizing these investments correctly.”
At the end of Q2 2022, 184 hedge funds tracked by Insider Monkey owned Meta Platforms, Inc. (NASDAQ:META). Fisher Asset Management was the stock’s leading stakeholder in Q2, owning Meta Platforms, Inc. (NASDAQ:META) shares worth over $1.8 billion.
1. Microsoft Corporation (NASDAQ:MSFT)
Renaissance Technologies Stake Value: $981 million
Percentage of Renaissance Technologies’ Portfolio: 1.16%
Number of Hedge Fund Holders: 258
Microsoft Corporation (NASDAQ:MSFT) produces and licences software for consumers and businesses. Microsoft is widely recognized for its Windows operating systems and Office productivity suite. The business is divided into three major divisions of similar size: productivity and business processes, intelligence cloud, and more personal computing.
Given its dominance of PC operating systems and its growth potential in the cloud, Microsoft Corporation (NASDAQ:MSFT) is regarded as one of the leading tech blue chips. Given Renaissance Technologies’ holding of almost $1 billion in the stock, it is also number one on our list of 5 and 10 Blue Chip Stocks to Buy According to Billionaire Jim Simons.
The Verge’s Tom Warren reported that Microsoft Corporation (NASDAQ:MSFT) has begun testing new updates to the Xbox Home U.I. that will be released to the public in 2023. The revisions to the layout and style will make it easier to locate Xbox games and applications.
At the end of Q2 2022, 258 hedge funds tracked by Insider Monkey owned Microsoft Corporation (NASDAQ:MSFT). Fisher Asset Management was the stock’s leading stakeholder in Q2, owning Microsoft Corporation (NASDAQ:MSFT) shares worth over $7.3 billion.
You can also take a look at 10 Tech Stocks to Buy Now According to Billionaire Steve Cohen and 10 Best Stocks to Buy Now According to Billionaire Andreas Halvorsen.
