Investors can learn a lot about stocks by following the trends that those who have achieved extreme levels of success observed in the stock market. With this in mind, Which stocks do they choose to include in their portfolios? Where are billionaires putting their money to allow it to work for them? We’ve done the research and here are the five stocks that most billionaires own.
1. Berkshire Hathaway stock
According to Yahoo Lifestyle, Microsoft stock isn’t the only stock that Bill Gates chooses to invest in. The Bill & Melinda Gates Foundation has made some handsome investments in Berkshire Hathaway, listed as BRK.A. on the New York Stock Exchange. The fund holds both A and B class stock with 11.3 million shares for a value of $11.9 billion. Gates was considered the Wealthiest person in the world at one time in the recent past. He also retains ownership of approximately $15.4 billion worth of Microsoft stocks with nearly 103 million shares. Gate and his partner Paul Allen founded Microsoft in 1975. While we would expect Gats to hold billions in Microsoft, interestingly, Berkshire-Hathaway is one of his favorite picks.
Next, we take a look at the investing habits of Jeff Bezos. It’s no great secret that he became one of the wealthiest men in the world after launching Amazon. He is not just a billionaire. His net worth has risen to more than a hundred billion dollars. He took a hit on his wealth when his divorce agreement required him to hand over four percent of his interest in Amazon stock to his ex-wife. This still left him in good condition, even after making the payment. Bezos became a billionaire through Amazon, but he has continued to make wise investment decisions that continue to skyrocket him to even higher pinnacles of wealth. In 2013 he purchased the Washington Post for $250 million, but what stock does he prefer to invest in? Interestingly, he purchased $1 million worth of Alphabet stock in 1998. It’s a shame that he decided to sell his interests. He sold the stock to invest in other companies. If he had held on to that stock it would have ma him even wealthier. Bezos had the right idea when he bought the Alphabet stock, but he didn’t hang onto it long enough.
3. Apple Inc.
When it comes to stock investment, it’s always a good idea to find out what Warren Buffet is up to these days. He’s the head of Berkshire Hathaway, and like Gates and Bezos, the multi-billionaire has also done remarkably well in his stock investments. He is viewed as one of the most respected authorities on investments in the world today. His remarkable fortune of billions speaks to his savvy when it comes to investing in the stock market. According to Biz Journals, Buffet’s largest sale was when he let Wells Fargo & Company go. The biggest investment that he made was his investment in Apple Inc. under the ticker symbol AAPL. Buffet has shared his wisdom on economics and investments publicly. On multiple occasions, he’s given his opinions about investment strategies. If you’re wondering about which stocks to include in your portfolio it might be helpful to look through some of the archives of previous interviews given by Buffet and check out his current portfolio to learn more about his investment strategies. It might give you a few ideas.
4. Barrick Gold
Kiplinger offers two more stocks that are popular with billionaires. The first is Barrick Gold. Platinum Investment Management is the billionaire investor that has purchased stock in the company. Warren Buffet’s Berkshire Hathaway made an investment valued at $563.6 million for 20,918,701 shares for $23.61 per share. The market value of the company is estimated at $42 billion. This was an unexpected move because Buffet is not known for investing in gold. The same holds for Platinum Investment Management of Sydney, Australia. The hedge fund is valued at $16.2 billion and isn’t in the habit of investing in commodities but it purchased stock in the value of 4.2 percent of its portfolio in Barrick Gold. Although there hasn’t been an explanation for the reasons behind the two billionaire investors’ departure from the norm, they had their reasons.
5. Johnson & Johnson
Another top stock pick of billionaires is Johnson & Johnson. Levin Capital Strategies is the billionaire investor that has included the stock in its portfolio of investments. JNJ has an estimated market value of $392.2 billion. Levin Capital Strategies is a New-York based hedge fund that paid $149 per share to include 5 percent of its portfolio in JNJ stocks. They followed up with n additional 1% stake in the company in the third quarter. JNJ is known for its highly diversified portfolio which makes it a safer bet in turbulent economic times. Notably, Levin first purchased shares of JNJ in 2006 and has continued to hold onto the stocks through all of these years without selling.
In conclusion, we see that billionaires tend to invest in companies in the healthcare industry such as Johnson & Johnson. They also invest in tech stock that has shown a sunny outlook for growth and expansion, i.e. Apple Inc. and Alphabet. The financial market is still considered to be a good bet most of the time, and Berkshire Hathaway, backed by Warren Buffett has consistently been a favorite of billionaires. Perhaps the most surprising was the investment in Barrick gold by two billionaires who have not traditionally invested in gold. When we consider the tremendous success that these billionaire investors have had throughout their careers, it’s worth taking note of what they’re doing in the stock market, and how it’s been working out for them.