Billionaire Jeffrey Talpins’ Top 5 Stock Picks

3. Amazon.com, Inc. (NASDAQ: AMZN)

Value: $116,246,000
Percent of Jeffrey Talpins’ 13F Portfolio: 12.13%
No. of Hedge Fund Holders: 273

With a $7.4 billion stake in AMZN, SB Management owns 2.3 million shares of the company as of the end of the fourth quarter of 2020. Our database shows that 273 hedge funds held stakes in Amazon as of the end of the fourth quarter, versus 245 funds in the third quarter. AMZN ranks 1st in our list of the 30 Most Popular Stocks Among Hedge Funds: 2020 Q4 Rankings.

Here is what Mairs & Power has to say about Amazon.com, Inc. in their Q4 2020 investor letter:

“We did acquire AMZN in the fourth quarter. But not owning it till then cost the Fund in performance relative to the S&P 500 TR Index. We had held off taking a position in Amazon largely due to concerns about the company’s slim margins. But in 2020, we saw its core margins nearly double as more consumers shopped online, which in turn led to greater utilization and route density within Amazon’s delivery network. In addition, Amazon’s advertising business, which represents a small portion of its overall sales, has been growing quickly. Advertising could become a third leg of growth for the company along with e-commerce and Amazon Web Services. In short, Amazon checks all of our boxes — it has a strong management team, great growth prospects, and a strong competitive advantage. And last year, we initiated our position at an intriguing valuation.”