Billionaire Seth Klarman’s Top 5 Stock Picks for 2021

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1. eBay Inc. (NASDAQ: EBAY)

Seth Klarman’s largest stock position eBay Inc. (NASDAQ: EBAY) continues to perform well over the past two years. Shares of the e-commerce platform rose 48% in the last twelve months and outperformed the market trends in 2021. The firm held 31.1 million shares of eBay at the end of the fourth quarter.

In a Q4 investor letter, Steel City Capital highlighted few stocks including eBay. Here’s what Steel City Capital stated:

“eBay (Long): EBAY continues to be a core holding in the Partnership’s long book despite not having any “sexy” attributes or unknown catalysts. I like EBAY because it checks the boxes of being both capital light and priced as a value stock (low multiple of free cash flow), factors which are attractive in a potentially inflationary environment.

In 3Q’20 the company printed $2.6 billion of revenue vs. guidance of $2.4 billion (a $200 million beat) while full year revenue guidance was taken up by $400 million, implying 4Q’20 would be higher by $200 million as well. Free cash flow from continuing ops was guided to $2.3 billion for the full year, slightly above the $2.0 billion the business regularly generated before getting a Covid/stimulus related boost.”

Please also see Billionaire Stan Druckenmiller’s Top 10 Stock Picks and Ray Dalio’s Top 10 Stock Picks for 2021.

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