In this article, we discuss the top 5 stocks to buy now according to billionaire Seth Klarman. If you want to read our detailed analysis of the Klarman’s history, his investment philosophy and hedge fund performance , go directly to the Top 10 Stocks to Buy Now According to Billionaire Seth Klarman.
5. Alphabet Inc. (NASDAQ:GOOG)
The Baupost Group’s Stake Value: $681M
Percentage of The Baupost Group’s 13F Portfolio: 7.32%
Number of Hedge Fund Holdings: 205
With over 3.4 million shares worth at around $9.6 billion, Ken Griffin’s Citadel Investment Group is the largest and leading shareholder in Alphabet Inc. (NASDAQ:GOOG), as of the first quarter of 2022. Seth Klarman’s Baupost Group owns 243,890 shares worth at around $681 million, a substantial increase from the previous quarter where they owned only 228,000 shares. This means that the Baupost Group has increased their hold over the stock by 7%, with Alphabet Inc. (NASDAQ:GOOG) making up 7.32% of the Baupost Group’s 13F portfolio.
On April 19, Rosenblatt analyst Barton Crockett conferred Alphabet Inc. (NASDAQ:GOOG) with a ‘Buy’ rating and $4,183 price target. The analyst noted that no firm is better positioned than Alphabet Inc. (NASDAQ:GOOG) to capitalize on the online sphere, given its “advantageous positioning for new ad privacy restrictions, dominance in viral video and emerging success in cloud services”.
Here is what Farrer Wealth Advisors has to say about Alphabet Inc. (NASDAQ:GOOG) in its Q1 2022 investor letter:
“Alphabet (NASDAQ:GOOG): We won’t waste much time trying to explain to our clients why Alphabet (NASDAQ:GOOG) is such a phenomenal business, we believe that is quite self-evident. The better explanation is why we never bought Alphabet (NASDAQ:GOOG) before. The reason was a personal bias we held based on three beliefs (which we now believe to be incorrect)
Growth in YouTube would stall as the increased ad-load would turn-off viewers (the double ad-load at the beginning of videos for example). Consumers will focus on discovery rather than search to purchase new items. For example – using Instagram/TikTok to decide what new clothes to buy instead of ‘googling’ for clothes. Other Bets: In general, we felt that capital spent on “Other Bets” has been a bit wasteful with the segment earning just around $3.1bn in revenue versus nearly $21bn in operating losses over the last five years…” (Click here to see the full text)
Furthermore, Baron Global Advantage Fund also mentioned Alphabet Inc. (NASDAQ:GOOG) in its Q1 2022 investor letter:
“We have modestly reduced the size of our position in Alphabet Inc. (NASDAQ:GOOG) (from 6.5% at the end of the fourth quarter of 2021 to 5.3% as of the end of the first quarter of 2022), after the stock rallied 64% in 2021 and continued outperforming during the first quarter, declining just 3%.”
Hence, in addition to Meta Platforms, Inc. (NASDAQ:FB), Intel Corporation (NASDAQ:INTC), and Starz Acquisition LLC (NASDAQ:STRZA), Alphabet Inc. (NASDAQ:GOOG) makes it to billionaire Seth Klarman’s list of top 10 stocks to buy.
