Jeremy Grantham’s 5 Favorite Stocks

2. Apple Inc. (NASDAQ:AAPL)

Number of Hedge Fund Holders: 128

Jeremy Grantham’s Stake Value: $577.71 Million

Apple Inc. (NASDAQ:AAPL) has been part of Jeremy Grantham’s GMO portfolio since the first quarter of 2013. In Q2 2022, Grantham held 4.23 million Apple Inc. (NASDAQ:AAPL) shares worth $577.71 million. He purchased Apple stock at an average price of about $23 per share, and has so far netted 579% gains on his investment. 

On September 6, Credit Suisse analyst Shannon Cross told investors she expects the iPhone 14 cycle to be similar to an S model, as Apple Inc. (NASDAQ:AAPL) continues to take advantage of an increasing installed base, supported by high customer retention, incremental share shift, and tailwinds from 5G adoption. She maintained an Outperform rating on Apple Inc. (NASDAQ:AAPL) with a $201 price target. 

According to Insider Monkey’s data, 128 hedge funds were long Apple Inc. (NASDAQ:AAPL) at the end of June, compared to 131 funds in the earlier quarter. Ken Fisher’s Fisher Asset Management is the leading stakeholder of the company, with 65.6 million shares worth roughly $9 billion. 

Here is what Alger Capital specifically said about Apple Inc. (NASDAQ:AAPL) in its Q2 2022 investor letter:

“Apple Inc. (NASDAQ:AAPL) is a leading technology provider in telecommunications. computing and services. Apple’s iOS operating system is the company’s unique intellectual property and competitive strength. This software drives extremely tight engagement with consumers and enterprises. The engagement is fostering the growing purchase of high-margin services like music, apps, and apple pay. Apple’s shares detracted from performance as management lowered its guidance for the second quarter due to headwinds from the war in Ukraine, adverse foreign currency shifts, and dampened consumer demand associated with the coronavirus in China. Additionally, many investors were concerned that lockdowns implemented to curtail the spread of COVID-19 would impact production of apple products, however the manufacturing facilities have resumed activity.”