Below are Billionaire Jorge Paulo Lemann’s top 5 stock picks. For a comprehensive list and his investment philosophy please see Billionaire Jorge Paulo Lemann’s Top 10 Stock Picks.
5. Square, Inc. (NYSE: SQ)
Billionaire Jorge Paulo Lemann first initiated a position payment technology company Square Inc (NYSE: SQ) during the second quarter of 2020. Shares of Square are in the green in 2021 after generating more than 450% growth last year. It was among the biggest contributor to 3G Capital’s performance in the pandemic year. Square is ranked at the fifth spot in the list of billionaire Jorge Paulo Lemann’s top 10 stock picks.
Blue Hawk Investment Group, an investment management firm, highlighted a few stocks including Square in a Q4 investor letter. Here is what Blue Hawk Investment stated:
“Square was the next top contributor and ended the year as the third largest holding in the portfolio. Square was a new addition to the portfolio in 2020 and added 436 bps to performance since it was first bought in the summer. It is still our third-largest holding. “
4. Snowflake Inc. (NASDAQ: SNOW)
Like Warren Buffett and several other big investors, Billionaire Jorge Paulo Lemann bought Snowflake Inc. (NASDAQ: SNOW) shares on its initial public offerings. Shares of the cloud-based data platform provider rallied in Q4, but failed to sustain gains in 2021. SNOW stock price is down 21% year to date.
In a Q3 investor letter, Baron Opportunity Fund made bullish comments about Snowflake’s fundamentals. Here is what Baron Opportunity Fund said:
“Snowflake Inc. provides a data-warehouse platform for large-scale data analytics and storage. The company is leveraging its cloud-native architecture to offer low-cost storage, scalability, and ease of use that are lacking in many competitive solutions. We participated in the company’s September IPO and the stock has performed well in the after-market. We believe Snowflake has a significant growth runway within its large addressable market given its differentiated technology, platform approach, and highly experienced management team. Snowflake’s CEO Frank Slootman and CFO Michael Scarpelli have successfully partnered at several public technology companies, including ServiceNow, a long-term Fund investment.”
3. Bill.com Holdings, Inc. (NYSE: BILL)
Shares of Bill.com Holdings, Inc. (NYSE: BILL) rose 287% in the last twelve months, thanks to substantial growth in revenues. Its December quarter revenue jumped 38% year over year and the company expects to sustain the momentum in 2021. 3G Capital first initiated a position in Bill.com during the first quarter of 2020. It was the third-largest stock holding of 3G Capital at the end of Q4, accounting for 16.05% of the 13F portfolio.
Bill.com Holdings was in 52 hedge funds’ portfolios at the end of the fourth quarter of 2020 up from 44 positions in the previous quarter.
2. Sea Limited (NYSE: SE)
Billionaire Jorge Paulo Lemann looks bullish over the future fundamentals of Sea Limited (NYSE: SE). His investment firm had raised a stake in Sea Limited during the fourth quarter by 7% to 17.55% of the overall portfolio. The firm first initiated a position in SE at the beginning of 2020. It appears that Jorge Paulo Lemann’s stock-picking strategy worked in the case of Sea Limited. This is because shares of the information technology company rallied 465% in the last twelve months.
Tao Value, which posted a return of 26.43% for the fourth quarter, highlighted a few stocks including Sea Limited in their investor letter. Here is what Tao Value stated:
“Sea Ltd. (ticker: SE) had a beat & raise quarter across segments. E-commerce saw GMV acceleration and better monetization. Gaming saw higher than expected active users’ growth. Last but least, the digital finance services arm (SeaMoney) saw strong adoption. In October, more than 30% of Shopee’s total gross order across markets combined were paid using the mobile wallets. I believe the SeaMoney will be a very important value driver in mid-term future.”
1. Carvana Co. (NYSE: CVNA)
Shares of Carvana Co. (NYSE: CVNA) surged more than 800% in the last twelve months amid investors increased confidence in its e-commerce platform of buying and selling used cars in the United States. It is the largest stock holding of 3G Capital. The firm increased its stake in Carvana by 33% in the December quarter to 20.11% of the overall portfolio.
ShawSpring Partners, a value-focused investment firm, claimed in their investor letter that Carvana’s stock price is overvalued. Here is what ShawSpring Partners stated:
“We made the decision to exit our investment in Carvana. Over our two-year holding period, we generated an internal rate of return of 114%. Our exit decision is unrelated to a change in our assessment of Carvana’s business quality, long-term opportunity, or management team. Instead, our rationale was based on our internal estimate of Carvana’s valuation, and our forecast for prospective returns. We continue to believe in the strength of Carvana’s vertically-integrated business model, and the superior customer proposition Carvana provides to used-car buyers. While we have no doubts that Carvana will remain a great business, we believe that at Carvana’s current valuation, it makes sense to shift our attention towards other equally fantastic businesses which have long growth runways less appreciated by the market. We will continue to follow the company’s progress closely and expect to take advantage of any dislocations that may cause Carvana’s expected return to meet our high hurdle rate for re-investment.”
You can also take a peek at Billionaire Ken Griffin’s Top 10 Stock Picks and Billionaire Nicholas Pritzker’s Tao Capital’s Best Stock Ideas.
