In this article, we discuss billionaire Ken Fisher’s top 15 stock picks heading into 2025.
Ken Fisher is the founder of Fisher Asset Management, a financial adviser that he started nearly five decades ago. The firm oversees over $240 billion from more than 150,000 private investors.
Fisher said, “I’ve gone to cash three times in my career; in 1987 before the crash, before the 1990 bear market and in the early 2000s, before the dot-com crash. But I missed the 2007-2009 bear market because I didn’t believe, and don’t believe, mortgages could cause what they are blamed for having caused.”
Besides focusing on long-term investments, Fisher also believes in spreading out investments to reduce risk. Fisher Asset Management is highly diversified, with a portfolio value of about $244 billion. While technology stocks account for 31.8% of the portfolio, the independent money management firm is also heavily invested in the services sector, accounting for 14.6% of the portfolio. Other significant holdings are in the financial services, healthcare, and basic materials sectors.
In the past year, Fisher’s firm made a 32.18% return, mainly because it invested a lot in tech stocks, especially those benefiting from the AI boom. While other managers are selling tech stocks due to high valuations, Fisher’s firm is buying more, especially in companies making AI chips.
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Even though the overall market is at all-time highs, Fisher says there’s no need to worry. He believes that just because the market is high now, it doesn’t predict the future. He expects the market to keep going up as long as the economy and other key factors get better.
“Bull markets hit new highs on an ongoing basis as soon as they have recovered from the prior bear market and hit their first all-time high in that new bull market. They keep doing that over and over again and eventually you do get another bear market and then again get another bull market. Bull markets, not always, are usually significantly bigger and longer than bear markets, significantly,” Ken Fisher said.
Ken Fisher’s portfolio is heavily invested in the “magnificent seven” stocks, based on the belief that the stocks are well poised to continue outperforming the overall market. According to Fisher, growth stocks will continue outperforming value stocks amid the prevailing economic conditions.
“If you think the market is going up, you should expect the magnificent seven to continue to do well. Will they necessarily do better than everything? No, but they never actually did. The fact is they did better as a group than most groups you could find. I think that will continue to be the case because I am optimistic on the market as a whole moving forward”, Fisher said in a video interview.
Given this positive economic outlook, let’s explore Ken Fisher’s top 15 stock picks for 2025.
Ken Fisher of Fisher Asset Management
Our Methodology
We looked through Fisher Asset Management’s portfolio to find Ken Fisher’s top 15 stock picks for 2025. We focused on his biggest investments and ranked the stocks from smallest to largest based on the firm’s stake at the end of Q3 2024.
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Billionaire Ken Fisher’s Top 15 Stock Picks Heading into 2025
15. Exxon Mobil Corporation (NYSE:XOM)
Fisher Asset Management’s Equity Stake: $3.42 Billion
Number of Hedge Funds Holding Stakes: 86
Exxon Mobil Corporation (NYSE:XOM) is one of the world’s biggest oil and gas companies. It operates in 60 countries and works in areas like exploration, production, refining, manufacturing, and chemicals. The stock is up by more than 15% for the year despite oil prices plunging below the $70 a barrel level.
Exxon Mobil Corporation (NYSE:XOM)’s competitive edge stems from its diversified world-class asset portfolio. The vast business portfolio was the catalyst behind solid third-quarter results. It delivered industry-leading earnings of $8.6 billion on November 1, 2024. Cash flow from operating activities was $17.6 billion, and free cash flow was $11.3 billion. Exxon Mobil Corporation (NYSE:XOM) is one of the companies looked upon in the energy sector ahead of Donald Trump’s second term. Trump looks to be friendlier to traditional oil and gas production, which would benefit oil drillers and natural gas and oil service providers.
The company’s new efforts to reduce carbon dioxide emissions are also expected to boost earnings. By 2027, the oil giant plans to invest about $20 billion in various projects like carbon capture and storage, biofuels, lithium, and hydrogen. By 2050, Exxon Mobil Corporation (NYSE:XOM) expects its low-carbon businesses to have a $6 trillion market, with long-term revenue potential in the hundreds of billions of dollars.
14. Caterpillar Inc. (NYSE:CAT)
Fisher Asset Management’s Investment Equity Stake: $3.50 Billion
Number of Hedge Funds Holding Stakes: 50
Caterpillar Inc. (NYSE:CAT) makes locomotives, power solutions, and heavy machinery. It’s the largest heavy equipment maker in the world. Its products are sold by 160 dealers in over 2,700 locations worldwide. The stock is up by more than 38% for the year, attributed to a period of robust performance of the industrial behemoth.
Caterpillar Inc. (NYSE:CAT) aims to strengthen its product line, incorporate sustainability, and lead in pricing and innovation for long-term profit growth. On November 7, 2024, Caterpillar Inc. (NYSE:CAT) announced it successfully tested its fully autonomous Cat® 777 truck at Luck Stone’s Bull Run plant in Virginia. This is a big step in providing autonomous hauling for quarries and aggregates. It also shows progress in its partnership with Luck Stone.
While the global economy has been under pressure amid the high interest rate environment, Caterpillar’s core business has remained resilient. The company delivered solid third-quarter results on October 30, 2024. Revenue logged in at $16.78 billion as adjusted earnings per share came in at $5.17.
Caterpillar Inc. (NYSE:CAT)’s capital allocation strategy demonstrates its commitment to returning value. The company has increased dividends in each of the last 30 years, maintaining an impressive 91-year dividend streak. The stock yields 1.40% in dividends, affirming why it is one of billionaire Ken Fisher’s top 15 stock picks heading into 2025 for passive income.
Here is what Diamond Hill Large Cap Strategy said about Caterpillar Inc. (NYSE:CAT) in its Q3 2024 investor letter:
“Other top Q3 contributors included HCA Healthcare and Caterpillar Inc. (NYSE:CAT). Heavy construction machinery manufacturer Caterpillar has held up better than industry peers against a challenging macroeconomic backdrop and a generally slowing construction environment.”
13. JPMorgan Chase & Co. (NYSE:JPM)
Fisher Asset Management’s Equity Stake: $3.54 Billion
Number of Hedge Funds Holding Stakes: 105
JPMorgan Chase & Co. (NYSE:JPM) is a big financial company offering deposit, investment, and lending products. It also provides investment banking services. It operates in 100 countries and is the largest bank in the US. It’s one of Ken Fisher’s top stock picks for 2025, benefiting from strong revenues and earnings.
Banks may become more constrained by relatively high interest rates. However, JPMorgan Chase & Co. (NYSE:JPM) has not been negatively impacted by the high rates that have been a feature of the American economy. The bank delivered better-than-expected third-quarter results on October 11, 2024. Revenue climbed 6% year over year to $43.32 billion as net interest income rose 3% to $23.5 billion, attributed to the high interest rate environment.
The bank’s long-term outlook remains positive, especially on Republicans sweeping the just-concluded US elections. Republican administrations have always been friendlier to businesses. Likewise, they push for a looser regulatory environment that encourages IPO mergers and acquisitions. JPM’s investment banking unit should be one of the beneficiaries. Additionally, JPM should benefit from Trump’s policies that promote bank borrowing.
Carillon Tower Advisers Carillon Eagle Growth & Income Fund stated the following regarding JPMorgan Chase & Co. (NYSE:JPM) in its first quarter 2024 investor letter:
“JPMorgan Chase & Co. (NYSE:JPM) contributed positively to performance following solid financial results and positive guidance for the remainder of 2024. Moreover, growing chatter around rising capital markets activity likely contributed to the stock’s strong performance relative to other banks. Recall that JPMorgan has a robust capital markets franchise.”
