Billionaire Paul Singer’s Top 5 Stock Picks

1. Dell Technologies Inc. (DELL)

Billionaire Paul Singer’s position in Dell Technologies Inc. (NYSE: DELL) contributed to its 2020 returns. This is because shares of Dell rallied 55% in the last twelve months as staying at home policies has raised the demand for IT hardware, software, and services solutions worldwide.

Horizon Kinetics highlighted a strong bullish case for Dell Corporation in an investor’s letter. Here is what Horizon Kinetics stated:

“Dell made its fortune disrupting incumbent personal computer makers by employing a lower-cost, direct-to-consumer sales model, and by being willing to sustain a low margin. It is in the process of trying to repeat this strategy. This is through its 64% ownership stake in Pivotal Software Inc. (PVTL), a newly public subsidiary that has a $2.7 billion market capitalization. Its mission is to capture market share in cloud computing by underselling the competition, such as Amazon and Microsoft. It has only $657 million of annual revenue, so obviously it is much smaller than the Amazon and Microsoft cloud divisions, but it has grown by 134% cumulatively in the past 36 months. Pivotal Software operates at a loss. It is fairly well-capitalized and certainly would have access to more capital if required. Consequently, the transformation of cloud computing into a low margin commodity-type business has already commenced, albeit, at a very low level.”

Please also see 10 Cheap Healthcare Stocks To Buy Now and Billionaire Ken Griffin’s Top 10 Stock Holdings.

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