Billionaires Can’t Live Without These 5 Stocks

#3 Microsoft Corporation (NASDAQ:MSFT)

-Billionaires with Long Positions (as of September 30): 18

-Aggregate Value of Billionaires’ Holdings (as of September 30): $7.47 Billion

The number of billionaires with stakes in Microsoft Corporation (NASDAQ:MSFT) climbed to 18 from 14 during the third quarter, while the value of their stakes increased to $7.47 billion from $7.14 billion quarter-over-quarter. Microsoft’s commercial cloud business grew by 8% year-over-year, generating quarterly revenue of $5.89 billion. The tech giant’s top-line declined by 12% year-over-year to $20.38 billion in the third quarter, mainly owing to the slowing PC market. Even so, analysts believe that Microsoft’s cloud business will entirely offset its slowing PC business in the upcoming years. Just recently, UBS reiterated its ‘Buy’ rating on the stock and lifted its price target on shares of Microsoft to $60 from $56, citing the company’s steady cash flow streams and fast-growing cloud business. Jeffrey Ubben’s ValueAct Capital holds a 75.27 million-share stake in Microsoft Corporation (NASDAQ:MSFT) as of September 30.

#2 Apple Inc. (NASDAQ:AAPL)

-Billionaires with Long Positions (as of September 30): 18

-Aggregate Value of Billionaires’ Holdings (as of September 30): $10.35 Billion

Apple Inc. (NASDAQ:AAPL) lost some of its appeal among the hedge fund industry overall during the September quarter, but received a vote of confidence from billionaires. The number of hedge funds in our database invested in Apple dropped to 133 from 144 during the third quarter, whereas the number of billionaires with positions in the company climbed to 18 from 15. The ongoing concerns about Apple’s high reliance on iPhone sales stands behind the poor stock performance during the third quarter. Apple shares are 7% in the green this year and are trading at a cheap trailing P/E ratio of 12.83, which seems to reflect the concerns mentioned above. Meanwhile, Apple is anticipated to gain market share in the global smartphone industry next year, as Nomura Securities predicts that the tech giant will reach a market share of 13% in 2016, up from 12% in 2015. Activist Carl Icahn of Icahn Capital LP was among the largest equity holders of Apple Inc. (NASDAQ:AAPL) at the end of the third quarter, holding 52.76 million shares.

#1 Allergan PLC (NYSE:AGN)

-Billionaires with Long Positions (as of September 30): 26

-Aggregate Value of Billionaires’ Holdings (as of September 30): $10.79 Billion

Allergan PLC (NYSE:AGN) was by far the most favored stock among the billionaires tracked by Insider Monkey at the end of the latest quarter. The number of billionaire investors with positions in the specialty-drug giant stood at 26 at the end of the September quarter, compared with 24 registered at the close of the previous one. Earlier this week, Pfizer Inc. (NYSE:PFE) and Allergan sealed a $160 billion deal, which is set to create the largest drugmaker in the world. Pfizer agreed to offer Allergan shareholders 11.3 Pfizer shares for each share of Allergan. This deal also represents the second-largest merger and acquisition deal ever, and will enable Pfizer to undergo a tax inversion by domiciling in Ireland. Billionaire John Paulson of Paulson & Co. was bullish on Allergan PLC (NYSE:AGN) at the end of the third quarter, owning 7.18 million shares.

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