In this article, we will take a look at Billionaire George Soros’ Top 10 Stock Picks.
The Man Who Broke the Bank of England
When it comes to financial lore, you’d struggle to find an investor who is as controversial as George Soros. With a net worth of $7.2 billion, Soros has made a name for himself by correctly spotting market trends, which has led to millions, if not billions, of dollars in strategic savings or profits. He cemented his reputation in financial legend, for instance, when he famously shorted the British pound in 1992 and made off with $1 billion profit in a single day. Soros is also known for overseeing the Quantum Fund, which from 1970 to 2000 produced an outstanding average yearly return of 30%.
Having founded his hedge fund, Soros Fund Management, back in the 1970s, Soros’ investment philosophy is centered around his concept of “reflexivity”. Soros believes that players in the market can influence the market themselves, causing feedback loops that can cause price deviations. The investor makes use of this idea to single out mispricings in the market to create returns. The best application for this concept is during economic bubbles. According to Soros, “When I see a bubble forming, I rush in to buy, adding fuel to the fire”. Of course, that doesn’t mean one can always hit the bullseye; we saw this during the dot-com era almost 25 years ago where Soros admitted to being beaten by billions of dollars in losses.
Soros Fund Management’s 13F portfolio contained $6.92 billion in securities as of September 30, up from $5.56 billion a quarter earlier. About 9.8% and 7.4% of those securities were in the technology and services sectors, respectively, down from 11.7% and 10.6% from the quarter prior. Healthcare, basic materials, and financials also constituted a sizable portion of the fund’s portfolio as of the third quarter of 2024.
Soros’ Opposition to AI
It’s no surprise to anyone who has followed George Soros over the years that the billionaire has a certain disdain for artificial intelligence. Soros claims that the technology poses a significant threat, especially to what he calls “open societies”, simply because AI can not only produce instruments of surveillance, but it can also be liable in its misuse. In Soros’ ideal world, AI regulations would have to be globally enforceable, though he admits that such a dream might not be realized because of the dynamics of governance across the globe. In a MarketWatch article from 2023, Soros outlined some of his thoughts regarding the technology. Here’s what he wrote:
“We, human beings, are both participants and observers in the world in which we live. As participants we want to change the world in our favor; as observers we want to understand reality as it is. These two objectives interfere with each other. I regard this as an important insight which allows me to distinguish between right and wrong.
AI destroyed this simple schema because it has absolutely nothing to do with reality. AI creates its own reality and when that artificial reality fails to correspond to the real world –which happens quite often — it is discarded as hallucination.
This made me almost instinctively opposed to AI and I wholeheartedly agree with the experts who argue that it needs to be regulated. But AI regulations have to be globally enforceable, because the incentive to cheat is too great; those who evade the regulations gain an unfair advantage.”
Having learned about George Soros and his approach to investing, let’s take a look at his top 10 holdings as of Q3 2024.
George Soros of Soros Fund Management
Our Methodology
For this article we scanned Soros Fund Management’s Q3 portfolio and chose its top 10 stock picks. The stocks are ranked in ascending order of the fund’s stakes in them.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
10. EchoStar Corporation (NASDAQ:SATS)
Soros Fund Management’s stake as of Q3: $54.37 million
Echostar Corporation (NASDAQ:SATS) is a multinational provider of television entertainment, connectivity, and technology. The company is responsible for a number of famous brands, such as Sling TV, DISH TV, and Boost Mobile.
In an update in November, a Buy rating was maintained on Echostar Corporation (NASDAQ:SATS) as TD Cowen lowered the price target on the stock from $37 to $30. This followed a tough quarter for the company, having recorded disappointing figures across each of its business sectors. On the other hand, the company is making progress across its PayTV business in fiscal Q3 2024, owing to its initiatives that were focused on cost optimization and ARPU growth.
Notably, there were some wins on the subscriber front. Sling TV added 145,000 new customers in Q3, rising from 117,000 last year. Retail wireless subscribers also grew by 62,000 while broadband satellite customer losses shrank to 43,000 compared to 59,000 from a year ago.
9. CRH plc (NYSE:CRH)
Soros Fund Management’s stake as of Q3: $54.4 million
CRH plc (NYSE:CRH) is a leading global provider of building materials solutions, providing a portfolio that includes aggregates, asphalt, ready-mixed concrete, and construction services. With businesses in 28 countries, CRH plays a vital role in road and critical utility infrastructure, commercial building projects, and outdoor living through its range of materials and products.
Earlier on December 10, Goldman Sachs began coverage of CRH plc (NYSE:CRH) with a Neutral rating and a price target of $112. The firm praised CRH plc’s strong track record of value-driven capital allocation, noting the company’s 18% CAGR in earnings per share over the past decade, fueled by strategic acquisitions. That said, Goldman Sachs flagged potential challenges ahead, including a projected slowdown in U.S. non-residential construction spending that could temper growth.
In Q3 2024, the company delivered strong financial results, with total revenue increasing by 4% year-over-year to $10.5 billion and adjusted EBITDA rising 12% to $2.5 billion. Earnings per share also grew by 10%, driven by effective cost controls, and strategic acquisitions, such as a $2.1 billion deal in Texas. Additionally, CRH plc (NYSE:CRH) announced a quarterly dividend of $0.35 per share, reflecting a 5% annual increase.
8. Jacobs Solutions Inc. (NYSE:J)
Soros Fund Management’s stake as of Q3: $65.5 million
Jacobs Solutions Inc. (NYSE:J) is a leading engineering consulting company that provides a wide range of services such as consulting, engineering and project delivery services to government and private sector customers around the globe. The company is actively engaged in high impact projects such as its partnership with AECOM to design upgrades in Vancouver for the Iona Island Wastewater Treatment Plant.
On December 10, Goldman Sachs resumed coverage of Jacobs Solutions Inc. (NYSE:J) with a Neutral rating and a price target of $150. The coverage builds on previous reports from 2021 and 2023. Notably, Goldman Sachs highlighted the company’s strong portfolio and focus on its Critical Mission Solutions division.
Jacobs Solutions Inc. (NYSE:J) has reported decent financials, with its backlog up 22.5% yearly. Nonetheless, its Q4 earnings and revenue came in at $1.37 a share and $3 billion respectively, just shy of estimates. Still, the company sees its fiscal 2025 adjusted EPS coming in between $5.80 and $6.20, reflecting an adjusted EBITDA margin of 13.8% to 14%.
7. Alphabet Inc. (NASDAQ:GOOGL)
Soros Fund Management’s stake as of Q3: $86.5 million
Alphabet Inc. (NASDAQ:GOOGL) is a leading tech giant with a diverse portfolio, including Google Services, Google Cloud, and other services. The company offers products such as Google ads, Google Chrome, Search, and YouTube, holding a dominant position in each of these markets.
UBS maintained its Neutral rating on GOOGL shares with a price target of $192 back in November. The firm pointed out the DOJ’s Initial Proposed Final Judgment, which suggested remedies in the wake of a court order that designated Google as a monopoly in the search sector. UBS said the proposed constraints are consistent with past DOJ rules from August and October, which may pose long-term revenue threats to the company. That said, Alphabet Inc. (NASDAQ:GOOGL) plans to appeal the ruling and seeks an injunction.
For Q3 2024, GOOGL reported a 15% year-over-year increase in consolidated revenue, reaching $88.3 billion. One of the primary drivers of this growth was the Cloud segment, with revenue surging from 35% year-over-year. This was led primarily by AI infrastructure and GenAI solutions within the Cloud Platform services.
Cooper Investors Global Equities Fund (Hedged) stated the following regarding Alphabet Inc. (NASDAQ:GOOGL) in its Q3 2024 investor letter:
“Alphabet Inc.’s (NASDAQ:GOOGL) operating performance remains strong with sales growing 14% in the most recent quarter. Highlights included the ongoing secular growth of digital advertising driving Google search (+14%), YouTube’s continued success as a leading content platform (+13%) and the performance of the Cloud business (+29%). In conjunction with this strong sales momentum, Alphabet’s increased focus on expenses is delivering margin expansion such that Operating Income grew 26%.
6. JD.com, Inc. (NASDAQ:JD)
Soros Fund Management’s stake as of Q3: $109.2 million
JD.com, Inc. (NASDAQ:JD) is a leading Chinese e-commerce company that specializes in computers and other electronic products, all the while operating as a supply chain-focused tech provider. Making use of its logistics network, JD.com has secured its position as a key player in China’s online retail market.
The company’s leadership in China’s 2025 national trade-in program is expected to drive notable growth, with Citi affirming a Buy rating on the JD stock alongside a price target of $51, signaling decent potential upside. The 2025 trade-in initiative, launched on January 1, reaches more than 90% of China’s counties and rural areas. Citi believes that JD’s strong supply chain, omni-channel strategy, and partnerships with provinces like Jiangsu can position the company as a preferred partner for local governments.
In the fiscal third-quarter of 2024, JD.com Inc. (NASDAQ:JD) reported a 48% year-over-year surge in net profit to $1.62 billion, driven by a 5.1% revenue increase to $260.39 billion. The company’s largest revenue segment, Retail sales, also grew by 6.1%, while logistics sales jumped by 7.9%.
5. GFL Environmental Inc. (NYSE:GFL)
Soros Fund Management’s stake as of Q3: $125.87 billion
GFL Environmental Inc. (NYSE:GFL) is a Canadian waste management company offering environmental services to municipal, commercial, industrial, and institutional clients.
On January 8, Raymond James maintained a $50 price target alongside an Outperform rating on GFL Environmental Inc. (NYSE:GFL). The company recently announced the sale of its Environmental Services segment for C$8 billion. This valuation came in roughly 17 times the segment’s trailing 12-month adjusted EBITDA. Moreover, the transaction is expected to enable the company to allocate C$3.75 billion towards its debt reduction alongside C$2.25 billion for share buybacks.
The company also reported notable results in fiscal Q3, achieving a record adjusted EBITDA margin of 31.1%. This growth was driven by strategic pricing and contributions from recent acquisitions. Looking forward, GFL Environmental Inc. (NYSE:GFL) is focused on expanding its recycling and renewable natural gas infrastructure, with roughly $96 million invested in Q3, with plans to allocate about $900 million towards mergers and acquisitions.
4. Alibaba Group Holding Ltd. (NYSE:BABA)
Soros Fund Management’s stake as of Q3: $138.59 million
Alibaba Group Holding Limited (NYSE:BABA) is a tech and e-commerce company serving customers and small business owners. The company is also a leader in digital media, logistics, and cloud computing. Nonetheless, the Chinese company has faced growth challenges in recent years due to regulatory issues and U.S.-China trade and technology tensions.
To further build out its international exposure, Alibaba Group Holding Limited (NYSE:BABA) aims to integrate its Korean operations into the e-commerce platform of E-Mart. The decision follows a strategic aim of expanding worldwide when growth in its main Chinese e-commerce business has shown signs of slowing. Although performance was slow at home for its e-commerce business during the September quarter, the company received a somewhat counterbalancing impact on its cloud computing arm as well as the international divisions: Lazada and AliExpress.
Meanwhile, Alibaba Group Holding Limited (NYSE:BABA) is also doubling down on investments in cloud infrastructure to meet the increasing demand for AI-driven solutions. During Q3, Alibaba Cloud saw revenue increase 7% year-over-year, fueled by strong growth in the public cloud business. AI-related products were a highlight, as revenue from these products grew triple digits for the fifth consecutive quarter and captured an increasingly growing chunk of the public cloud.
3. AerCap Holdings N.V. (NYSE:AER)
Soros Fund Management’s stake as of Q3: $150.59 million
AerCap Holdings N.V. (NYSE:AER), based in Ireland, is a leading player in the aviation leasing sector, offering an extensive range of assets including narrowbody and widebody aircraft, regional jets, freighters, engines, and helicopters.
In December, Goldman Sachs resumed coverage of AER with a Buy rating, noting the company’s well-diversified portfolio and promising growth prospects. Goldman’s analysts project a 14% increase in book value per share and a 12% rise in earnings per share, driven by robust asset sales and strategic share buybacks. In tandem, Citi affirmed its Buy rating and raised its price target to $117 from $113, while revising its earnings per share forecast to $11.63 for the current year, while projecting $13.18 and $14.28 for 2025 and 2026, respectively.
AerCap Holdings N.V. (NYSE:AER) continues to maintain a strong financial position, with record operating cash flows of $5.6 billion over the past 12 months. In the third quarter of 2024, the company repurchased $500 million in shares, bringing the total for the first nine months of the year to $1.2 billion. While expected delivery delays from Boeing and Airbus are likely to impact Q4 targets, AerCap seems well-capitalized, holding approximately $23 billion in liquidity.
2. AstraZeneca PLC (NASDAQ:AZN)
Soros Fund Management’s stake as of Q3: $206.67 million
AstraZeneca PLC (NASDAQ:AZN) stands out as a pharmaceutical industry leader, particularly known for its work in cancer therapies and treatments for rare conditions. The company’s track record of medical breakthroughs has cemented its position in healthcare.
A minor uptick in Leerink Partners’ price target to $87 followed AstraZeneca’s strong third-quarter performance, with revenue reaching $13.565 billion – exceeding projections by 4%. While their cancer drug portfolio showed mixed results, with Tagrisso, Calquence, and Lynparza beating expectations but Imfinzi/Imjudo falling short, their respiratory drug Symbicort posted impressive 21% growth, complemented by Ultomiris’s 7% gain.
The company is now making a significant push into the American market, allocating $3.5 billion for expanded manufacturing and research operations. Despite increased net debt of $3.8 billion from this expansion, acquisitions, and shareholder dividends, AstraZeneca PLC (NASDAQ:AZN) remains confident in its future. The company maintains its strategic objectives of achieving an operating margin above 35% by 2026 and generating $80 billion in annual revenue by 2030.
1. Smurfit Westrock Plc (NYSE:SW)
Soros Fund Management’s stake as of Q3: $340.84 million
Smurfit Westrock Plc (NYSE:SW) is a global leader in the paper packaging industry, producing a wide range of products, including shipping boxes and retail displays. With paper mills and box plants in 40 countries, the company has a substantial global footprint. The company also manages more than 300,000 acres of forested land.
The company reported impressive results in its first quarter report. Sales for the period between July and September reached $7.67 billion, nearly tripling from the previous year. A massive portion of this increase can be credited to the acquisition of WestRock, which contributed approximately $4.69 billion to total sales. That said, even without the merger, the growing demand for packaging solutions has led to increased orders across a number of sectors.
On November 25, JPMorgan maintained its Overweight rating on Smurfit Westrock Plc (NYSE:SW), alongside a price target of $65 for the stock. The firm’s positive outlook follows key takeaways from the UK Leaders Conference, where Smurfit Westrock Plc (NYSE:SW) was actively involved. Although market conditions in Europe are seen as challenging, with low volumes and an oversupply issue, the U.S. market paints a more favorable picture. JPMorgan’s recommendation for Smurfit Westrock Plc (NYSE:SW) remains focused on not only the current market cycle, but on expected structural improvements in its legacy business.
While we acknowledge the potential of SW, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than SW but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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