In this article, we will take a look at the 5 Dow stocks billionaires are loading up on. To see more such companies, go directly to 10 Dow Stocks Billionaires Are Loading Up On.
5. Walmart Inc. (NYSE:WMT)
Total Number of Billionaire Investors: 20
Walmart Inc. (NYSE:WMT) is in the spotlight after the company posted strong Q1 results in May. Walmart Inc. (NYSE:WMT)’s adjusted EPS in the first quarter came in at $1.47, beating estimates by $0.15. Revenue in the quarter increased by about 7.6% year over year to $152.3 billion, surpassing estimates by $4.39 billion. Global advertising business in the period jumped 30%, while comp. sales in the US grew 7.4%.
Billionaires are also fan of the big-box retailer. Insider Monkey’s analysis shows that 20 billionaires were piled into Walmart Inc. (NYSE:WMT) as of the end of the first quarter of 2023.
Out of the 943 hedge funds tracked by Insider Monkey, 91 hedge funds reported owning stakes in Walmart Inc. (NYSE:WMT), significantly up from 61 funds in the previous quarter. This shows a huge jump in hedge fund sentiment for Walmart Inc. (NYSE:WMT) in the first quarter.
4. Visa Inc. (NYSE:V)
Total Number of Billionaire Investors: 24
Payments company Visa Inc. (NYSE:V)’s stock was owned by 24 billionaires as of the end of the first quarter of 2023. The most notable billionaires having stakes in Visa Inc. (NYSE:V) according to Insider Monkey’s database are Warren Buffett, Chris Hohn, Andreas Halvorsen and Rajiv Jain.
Overall, 173 hedge funds tracked by Insider Monkey were long Visa Inc. (NYSE:V) at the end of the March quarter.
3. UnitedHealth Group Inc. (NYSE:UNH)
Total Number of Billionaire Investors: 25
UnitedHealth Group Inc. (NYSE:UNH) is one of the most popular stocks among elite hedge funds as of the end of the first quarter of 2023. Insider Monkey’s database of 943 funds shows that 116 hedge funds had stakes in UnitedHealth Group Inc. (NYSE:UNH) as of the end of the March quarter.
When it comes to billionaires, 25 billionaires via their hedge funds were long UnitedHealth Group Inc. (NYSE:UNH) as of the end of March.
Alger Spectra Fund made the following comment about UnitedHealth Group Incorporated (NYSE:UNH) in its Q1 2023 investor letter:
“UnitedHealth Group Incorporated (NYSE:UNH) is an integrated healthcare benefits company uniquely positioned to address rising healthcare costs for its customers, due to its vertical integration, size, and scale. The Optum health benefits services unit, which accounts for approximately 45% of the company’s operating earnings, in our view, has the potential to grow even further as customers look for ways to manage rising healthcare costs. During the period, shares detracted from performance due to several factors: 1) many 2022 healthcare winners with shorter duration profiles and persistent earnings profiles, such as UnitedHealth Group. underperformed in the first quarter of 2023, 2) uncertainty surrounding Medicare Advantage reimbursement levels from the Federal government in 2023, which will be determined later in the year, and 3) increased regulatory scrutiny in the form of potential Medicare Advantage audits across the industry. While these concerns have impacted UnitedHealth in the near-term, we believe company fundamentals remain intact given its large scale business model, competitive advantages, and medium to long- term growth prospects.”
2. salesforce.com, inc. (NYSE:CRM)
Total Number of Billionaire Investors: 26
salesforce.com, inc. (NYSE:CRM) ranks second in our list of the Dow stocks billionaires are loading up on. Insider Monkey’s latest analysis shows that 26 billionaires had stakes in salesforce.com, inc. (NYSE:CRM) via their hedge funds. The total value of the stakes owned by billionaires in salesforce.com, inc. (NYSE:CRM) stood at $3.7 billion. Some of the most notable billionaires having stakes in salesforce.com, inc. (NYSE:CRM) include Thomas Steyer, Steve Cohen and Dan Loeb.
Vulcan Value Partners made the following comment about Salesforce, Inc. (NYSE:CRM) in its Q1 2023 investor letter:
Salesforce, Inc. (NYSE:CRM) was a material contributor during the quarter. The company has taken numerous positive steps to increase profitability more quickly than expected. Salesforce also improved its corporate governance by recommending three new board members. The company is focused on improving margins, deemphasizing acquisitions, and has expanded its stock buyback plan from $10 billion to $20 billion. We believe Salesforce can pursue these opportunities while continuing to increase its competitive position.
1. Microsoft Corporation (NASDAQ:MSFT)
Total Number of Billionaire Investors: 33
Microsoft Corporation (NASDAQ:MSFT) is continuously getting positive ratings from Wall Street analyst amid its quick integration of AI tools with its products and services. Wedbush’s Dan Ives recently said in a note that ChatGPT/AI monetization from consumer and enterprise segments could add $40 to $50 per share to Microsoft Corporation (NASDAQ:MSFT)’s sum of the parts valuation.
Ives also highlighted Microsoft Corporation (NASDAQ:MSFT)’s guidance which he believes is “jaw dropping.” The analyst said Microsoft Corporation (NASDAQ:MSFT)’s monetization of AI could be “much sooner” than the Street’s expectations.
Insider Monkey’s analysis shows that 33 hedge funds led by billionaires had stakes in Microsoft Corporation (NASDAQ:MSFT) as of the end of the first quarter of 2023.
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