5 Most Famous Hedge Fund Managers and Their Top Stock Picks

 1. Warren Buffett

Top Stock Pick: Apple Inc (NASDAQ:AAPL)

That Warren Buffett tops the list of the most famous hedge fund managers is no surprise. Warren Buffett is generous at sharing investing wisdom in his annual letters to Berkshire investors. In 2022, Buffett said something that shows his intellectual humility and investing wisdom:

“Over the years, I have made many mistakes. Consequently, our extensive collection of businesses currently consists of a few enterprises that have truly extraordinary economics, many that enjoy very good economic characteristics, and a large group that are marginal. Along the way, other businesses in which I have invested have died, their products unwanted by the public. Capitalism has two sides: The system creates an ever-growing pile of losers while concurrently delivering a gusher of improved goods and services. Schumpeter called this phenomenon “creative destruction.” One advantage of our publicly-traded segment is that – episodically – it becomes easy to buy pieces of wonderful businesses at wonderful prices. It’s crucial to understand that stocks often trade at truly foolish prices, both high and low. “Efficient” markets exist only in textbooks. In truth, marketable stocks and bonds are baffling, their behavior usually understandable only in retrospect.”

Apple Inc (NASDAQ:AAPL) was the biggest holding of Warren Buffett’s Berkshire Hathaway as of the end of the third quarter of 2023 as the fund owned a $157 billion stake in Apple Inc (NASDAQ:AAPL).

In its fourth quarter 2023 investor letter, ClearBridge Dividend Strategy stated the following regarding Apple Inc. (NASDAQ:AAPL):

“We meaningfully reduced our exposure to Apple Inc. (NASDAQ:AAPL) in 2023. Apple is the largest company in the world and produces terrific products that engage users for hours each day. Despite the company’s size, ubiquity and relevance, however, Apple’s growth has slowed dramatically. Its fiscal 2023 earnings were flat with those of 2022. Apple trades at 30x earnings; sustaining that multiple will require a meaningful acceleration in revenues. While such an improvement is possible, we do not see any obvious catalysts for adding tens of billions of dollars to Apple’s topline. Consequently, the risk-reward skews negatively.”

Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below. You can also look at the Billionaire Paul Singer’s Recent Activist Targets and Top Stock Picks and the Cliff Asness Stock Portfolio: 10 Top Stock Picks.