In this piece, we will take a look at the 5 large-cap stocks to buy according to Claes Fornell’s CSat Investment. If you want a detailed look at Mr. Fornell, his firm, and other large-cap stocks, then head over to 10 Large-Cap Stocks to Buy According to Claes Fornell’s CSat Investment.
5. Berkshire Hathaway Inc. (NYSE:BRK-A)
CSat Investment’s Stake Value: $2.2 million
Percentage of CSat Investment’s 13F Portfolio: 1.88%
Number of Hedge Fund Holders: 106
Market Capitalization as of 12/3/21: $621 billion
Berkshire Hathaway Inc. (NYSE:BRK-A) is the world’s largest financial services firm that has listed its shares on the public market. It also has the most expensive stock in the world, with a price of $420,700 for a share as of December 2. With a portfolio worth $293 billion as of Q3 2021, Berkshire Hathaway Inc. (NYSE:BRK-A) owns several companies and has minority stakes in others.
Mr. Fornell’s investment firm held 8,775 Berkshire Hathaway Inc. (NYSE:BRK-A) shares during Q3 2021, which were worth $2.2 million and represented 1.88% of its portfolio.
Berkshire Hathaway Inc. (NYSE:BRK-A) brought in $10 billion in net earnings for Q3, in a drastic annual drop of more than $20 billion. Its Class A shares earned $6,882 per share during the same quarter. Keefe Bruyette highlighted this in a November 2021 note but kept the company’s price target unchanged at $485,000.
Berkshire Hathaway Inc. (NYSE:BRK-A)’s market value as of Friday, December 3rd, 2021 was $621 billion. Its largest investor by the third quarter was Michael Larson managing the Bill & Melinda Gates Foundation Trust who owned 38 million shares worth $10.5 billion.
In a Q3 2021 investor letter, Black Bear Value partners mentioned Berkshire Hathaway Inc. (NYSE:BRK-A), stating that:
“Please see Q1 letter for our Berkshire on a Napkin investment exercise. We have written on it extensively and will save your eyeballs from extraneous reading. Berkshire is very cheap for owning such high-quality businesses and will continue to grind higher and compound value for us.”
4. Amazon.com, Inc. (NASDAQ:AMZN)
CSat Investment’s Stake Value: $3 million
Percentage of CSat Investment’s 13F Portfolio: 2.58%
Number of Hedge Fund Holders: 242
Market Capitalization as of 12/3/21: $1.7 trillion
Amazon.com, Inc. (NASDAQ:AMZN) is an online retailer based out of the United States. Its platform allows sellers and merchants to connect with their customers. The company has also expanded into other areas such as data centers, consumer electronics, and satellite internet.
CSat Investment owned a $3 million stake in Amazon.com, Inc. (NASDAQ:AMZN) that made up 2.58% of its portfolio by Q3 2021 end. This was through 994 shares. 242 of the 867 hedge funds polled by Insider Monkey during the same period held the company’s shares.
For its third fiscal quarter, Amazon.com, Inc. (NASDAQ:AMZN) brought in $110 billion in revenue and $6.12 in GAAP EPS, missing estimates for both. In a December 2021 note, UBS set a $4,700 price target and a Buy rating for the retailer, stating that, its retail and cloud divisions are among the strongest in the market.
As of December 3rd, 2021, Amazon.com, Inc. (NASDAQ:AMZN)’s market value was $1.7 trillion.
Ken Fisher’s Fisher Asset Management is Amazon.com, Inc. (NASDAQ:AMZN)’s largest investor according to Insider Monkey’s research. It owns 1.9 million shares worth $6 billion.
In a Q3 2021 investor letter, Madison Funds mentioned Amazon.com, Inc. (NASDAQ:AMZN) and stated that:
“We did add a modest new position weight to the portfolio in the quarter in Amazon.com, Inc. stock (AMZN). We acknowledge that many aspects of Amazon’s merit as an investment are well appreciated. However, our work leads us to conclude that shares are attractive. Leadership positions in both e-commerce and cloud computing provide the company with significant durable competitive advantages in industries that we think can produce above average growth over the next decade. Over the past year, AMZN shares have trailed the market as investors debate near-term growth prospects following the pandemic-induced e-commerce demand. Additionally, margins have been depressed due to Amazon’s unprecedented increases in spending to build out fulfillment and in-house logistics capabilities – Amazon will build out more square footage this year and last than it did cumulatively over the previous 10 years, more than doubling its in-house delivery capacity. We like the investments Amazon is making and believe they will further advantage the company relative to other retailers, making it nearly impossible for competitors to match the same level of delivery speed and convenience. With its large and frequently engaged customer base, Amazon has multiple mechanisms to make money, including selling advertising and enhanced subscription services. Within the cloud business, we forecast Amazon Web Services (AWS) leveraging its strengths in Infrastructure-as-a-service (IaaS) to move into higher value segments of cloud computing (such as platform-as-a-service: PaaS), allowing the company to continue outgrowing the overall IT sector with strong profitability. While Amazon shares have performed extremely well over the long-term, we think near-term concerns about whether Amazon will earn a return on its accelerated investments provide an opportunity now for investors willing to look through the investment period. Our view is that the investments likely earn strong returns and extend Amazon’s competitive advantages and above average growth.”
3. Alphabet Inc. (NASDAQ:GOOG)
CSat Investment’s Stake Value: $3.6 million
Percentage of CSat Investment’s 13F Portfolio: 3.04%
Number of Hedge Fund Holders: 156
Market Capitalization as of 12/3/21: $1.89 trillion
Alphabet Inc. (NASDAQ:GOOG) is the holding company for the search engine giant Google. In addition to Google, it also has other services such as YouTube, Cloud and Other Bets.
Mr. Fornell’s CSat Investments owned 1,752 Alphabet Inc. (NASDAQ:GOOG) shares worth $3.6 million and constituting 3.04% of its portfolio during the third quarter of this year. Additionally, during Q3 2021, 156 of the 867 hedge funds polled by Insider Monkey held stakes in the company.
Alphabet Inc. (NASDAQ:GOOG) brought in $65 billion in revenue and $27.99 in GAAP EPS during its Q3, beating analyst estimates for both. Tigress Financial raised its price target to $3,540 from $3,185 in December 2021, outlining that investments in artificial intelligence spell a positive future for the company.
In its Q3 2021 investor letter, Oakmark Funds mentioned Alphabet Inc. (NASDAQ:GOOG). Here is what the fund said:
“Alphabet, a U.S. communication services provider, was once again a top contributor for the quarter, solidifying its rank as a top contributing stock for the one-year period. The company’s financial results repeatedly exceeded expectations. In particular, its revenue grew faster than expected and its margin trends improved across all segments. In addition, management has executed $24.4 billion of stock repurchases so far in 2021. After further examination, we recently increased our estimate of Alphabet’s intrinsic value based on the company’s better than expected operating leverage and its notable efficiency improvements. As a result, we continue to believe that Alphabet is trading at a significant discount to its intrinsic value.”
2. Microsoft Corporation (NASDAQ:MSFT)
CSat Investment’s Stake Value: $1.1 million
Percentage of CSat Investment’s 13F Portfolio: 0.95%
Number of Hedge Fund Holders: 250
Market Capitalization as of 12/3/21: $2.4 trillion
Microsoft Corporation (NASDAQ:MSFT) is an American technology firm that is best known for its Windows operating system. One of the pioneering technology companies, Microsoft has diversified its businesses over the years to now cover notebooks, gaming consoles, and cloud computing among others.
Microsoft Corporation (NASDAQ:MSFT) brought in $45 billion in revenue and $2.27 in non-GAAP EPS for its first fiscal quarter, pleasing Wall Street by beating estimates for both. Credit Suisse set a $400 price target for the Windows maker in November 2021, sharing that it will deliver strong results in the upcoming years.
During Q3 2021, Mr. Fornell’s investment firm owned 4,807 Microsoft Corporation (NASDAQ:MSFT) shares which were worth $1.3 million and made up 0.95% of its portfolio. During the same time period, 250 of the 867 hedge funds surveyed by Insider Monkey had holdings in the technology firm.
Microsoft Corporation (NASDAQ:MSFT) was worth $2.4 trillion in market capitalization as of the close of trading on Friday, December 3, 2021.
Microsoft Corporation (NASDAQ:MSFT)’s largest shareholder is Ken Fisher’s Fisher Asset Management who owns 25 million shares worth $7 billion.
In its Q1 2021 investor letter, Polen Capital, mentioned Microsoft Corporation (NASDAQ:MSFT) outlining that:
“We have written extensively about Microsoft in recent commentaries. It was our leading contributor last year and one of our largest weightings within the Portfolio. It continues to experience business momentum through several dominant, essential, and competitively advantaged businesses, like Office 365 and Azure. The markets it competes for are enormous, which gives the company the ability to compound at scale. In the past quarter alone, the company generated over $40 billion in revenue, representing a 17% growth rate. The inherent operating leverage in Microsoft’s business model continues and led to 34% earnings growth this past quarter. Despite the broad rotation we saw in the first quarter and Microsoft’s robust performance in 2020, we think its business fundamentals continue to exhibit strength, and the stock continues to reflect the fundamentals.”
1. Apple Inc. (NASDAQ:AAPL)
CSat Investment’s Stake Value: $5.8 million
Percentage of CSat Investment’s 13F Portfolio: 4.92%
Number of Hedge Fund Holders: 120
Market Capitalization as of 12/3/21: $2.7 trillion
Apple Inc. (NASDAQ:AAPL) is one of the largest consumer electronics companies in the world that is known for its iconic product design and closed ecosystem. Made famous by the mercurial approach of its late co-founder Mr. Steve Jobs, Apple’s products target the smartphone, wearable, and personal computing industries.
CSat Investment owned 47,965 Apple Inc. (NASDAQ:AAPL) shares during the third quarter of this year. These were worth $5.8 million and represented 4.92% of its portfolio. 120 of the 867 hedge funds polled by Insider Monkey for Q3 2021 owned the company’s shares.
For its fourth fiscal quarter, Apple Inc. (NASDAQ:AAPL) posted $83 billion in revenue and $1.24 in GAAP EPS, missing analyst estimates for revenue and meeting them for EPS. Its price target was raised to $200 from $185 by Wedbush in November 2021, with the firm believing that Apple Inc. (NASDAQ:AAPL) will touch $3 trillion in market capitalization in 2022.
Apple Inc. (NASDAQ:AAPL) was worth $2.7 trillion in market capitalization by the close of trading on Friday, December 3rd, 2021. The company’s largest shareholder is Warren Buffett’s Berkshire Hathaway who owns a whopping 887 million shares worth an equally staggering $125 billion.
Distillate Capital mentioned Apple Inc. (NASDAQ:AAPL) in its Q1 2021 investor letter. Here is what the fund said:
“Apple is an even more notable situation and one that highlights our free cash valuation methodology and bears further discussion given its Q3 ‘20 sale from our strategy. For an extended period, Apple was extraordinarily inexpensive on a free cash flow basis and was the largest position in our strategy, exceeding 5% of the portfolio.”
You can also take a peek at the 10 Best SPACs to Invest In According to Reddit and Jim Cramer is Bearish on These 10 Stocks.
