This Elite Fund’s Top Technology and Healthcare Picks Led By Apple (AAPL)

#3 Alphabet Inc (NASDAQ:GOOGL)

Shares held (as of September 30): 10,917
Total Value (as of September 30): $6.97 million
Percent of Portfolio (as of September 30): 4.44%

Alphabet Inc (NASDAQ:GOOGL) bears say the company’s preferred earnings measure is overstated because it doesn’t factor in legitimate costs such as stock options. They point to the fact that Alphabet’s CFO makes an estimated $650,000-a-year under Alphabet’s preferred earnings measure, but really makes more than $14 million in reality. Investors don’t seem to care, as shares of the stock are up by 37% year-to-date. Given Google’s leading market share of internet search, a few cents here or there per share won’t change the fact that Alphabet earns a great return on capital. Larry Page is a visionary and is determined to change the world by investing in various moonshots, from self-driving cars to artificial intelligence. If just one of Google’s moonshots work, look for shares to rally even further.

#2 Facebook Inc (NASDAQ:FB)

Shares held (as of September 30): 89,616
Total Value (as of September 30): $8.06 million
Percent of Portfolio (as of September 30): 5.13%

Facebook Inc (NASDAQ:FB) is a digital drug that hundreds of millions of people cannot go without each day. If Facebook’s website goes down, people call the police and complain. It’s that addicting. Given that Facebook has penetrated almost half of the world’s three billion-strong internet population, Mark Zuckerberg and Co are trying to reach the other half of the world by bringing internet to the next three billion through drones and other technologies. Zuckerberg is also trying to work on his foreign language skills to get Chinese President Xi Jinping to allow Facebook into China, a country with 600 million internet users. If Facebook is allowed into China, shares could rally even more. Stephen Mandel’s Lone Pine Capital owned 9.76 million Facebook shares at the end of June.

#1 Apple Inc. (NASDAQ:AAPL)

Shares held (as of September 30): 89,926
Total Value (as of September 30): $9.92 million
Percent of Portfolio (as of September 30): 6.32%

Apple Inc. (NASDAQ:AAPL) was Beech Hill’s number one holding as of September 30, comprising 6.32% of the fund’s equity portfolio at the end of the third quarter. Although the company’s EPS has exceeded analyst’s expectations in recent quarters, the market still has its doubts about Apple, as many investors think the company is still primarily a single product company. Apple can change all of this by successfully building an automated, connected car over the next few years. As it stands today, the transportation market is several times larger than the smartphone market and could move Apple’s top line needle substantially. Another catalyst that could move Apple’s stock would be a foreign earnings repatriation tax holiday that many Presidential candidates are talking about. At a forward P/E of 11.18, shares of Apple are certainly cheap, particularly when contrasted with the NASDAQ’s forward P/E of 19.85 and the Dow Jones Index’s forward P/E of 16.22. Carl Icahn‘s Icahn Capital LP owned 52.76 million Apple shares at the end of June.

Disclosure: None