Apple Inc. (AAPL), Pfizer Inc. (PFE), Wells Fargo & Co (WFC): Billionaire Ken Fisher Bets on Tech, Healthcare and Finance Heading into Q2

“[…] While we have modest expectations for Apple Watch and don’t expect AAPL to maintain this level of growth, the market expects even less, as it continues to value AAPL shares at a discounted valuation. We believe that AAPL is a superior company that merits a premium multiple.”

Fisher’s stake in Pfizer Inc. (NYSE:PFE) is the second-largest in its equity portfolio. The position in the pharmaceutical company amasses 31.21 million shares valued at $1.09 billion. Pfizer Inc. (NYSE:PFE) has also recently reported its latest quarterly financial results, for the first quarter of 2015, posting revenue of $10.86 billion and net profit of $2.36 billion, or $0.36 per share, which came ahead of estimates. However, the significant exposure to the international market has affected the company’s revenue estimates due to a stronger dollar. Pfizer now expects revenue ranging between $44 billion and $46 billion for the current year. Fisher is by far the largest shareholder of Pfizer Inc. (NYSE:PFE) among the funds we track, followed by Cliff Asness’ AQR Capital Management and Ric Dillon’s Diamond Hill Capital, among others.

Johnson & Johnson (NYSE:JNJ) is another pharmaceutical company that is among Fisher’s top picks. The fund reported holding 10.46 million shares worth $1.05 billion. Aside from the strong performance of the stock, Johnson & Johnson (NYSE:JNJ) is also one of the most stable dividend payers, with a yield of 3.01%. Recently, the company announced a 7% rise in its quarterly dividend to $0.75 per share. Again, Fisher is the largest shareholder of Johnson & Johnson (NYSE:JNJ) among the funds from our database, while on the second spot is Donald Yacktman’s Yacktman Asset Management with 8.61 million shares, according to its latest 13F filing.

On the fourth spot is one of Mr. Fisher’s picks from the finance sector. In Wells Fargo & Co (NYSE:WFC), the investor disclosed a $1.0 billion position that contains 18.54 million shares. In the latest round of earnings results, Wells Fargo posted revenue and earnings above the estimates and higher in comparison with the first quarter of 2014. However, the low interest rate environment is affecting Wells Fargo’s lending business and to offset it the banking company plans to expand its insurance business. The move comes as Wells Fargo & Co (NYSE:WFC) is already one of the largest insurance players among major banks. Another point in Wells Fargo & Co (NYSE:WFC)’s support is that it is backed by Warren Buffett, who owns some 463.45 million shares as of the end of 2014. 

In United Technologies Corporation (NYSE:UTX), Fisher disclosed holding 8.07 million shares worth $945.53 million. United Technologies is a $102 billion provider of services for the building systems and aerospace industries. The company is currently under investigation by the Securities and Exchange Commission regarding allegations of violations of US anti-bribery laws by its commercial and aerospace businesses. The investigation has been ongoing for around a year, during which time the stock of United Technologies Corporation (NYSE:UTX) has inched down by 1.90%. Aside from Fisher, other shareholders of United Technologies Corporation (NYSE:UTX) include Ken Griffin‘s Citadel Investment Group and Phill Gross and Robert Atchinson’s Adage Capital Management.

Disclosure: None