3 Stocks Billionaires Are Buying

As the saying goes, success breeds success. When it comes to investing, many people take this to mean that it might make sense to pay attention to what other successful investors are buying and then follow their lead in making the same investments. After all, even if you don't get the sameidentical You may also be able to ride on their coattails and make some good profits.

Fortunately for those who wish to follow in the footsteps of billionaire investors, many of the world's largest investors are required to disclose their trading each quarter. To find out what these potentially market-moving money managers are buying, three contributors to the Motley Fool went looking for signs of trades reported by these big investors. What they found was that billionaire investors have been buyingINVISTA (NASDAQ: NVDA),Starbucks Resonance (NASDAQ: SBUX)(math.) andSnowdragon (NYSE: CVX)The reason for this is that the investors are not doing so well. Read on to find out why, and decide for yourself if following these investors will help you build your wealth.

This Gorgeous Seven stock is hot, hot, hot.

Eric Vollkerman (Nvidia).: Billionaire Ray Dalio's monster hedge fund Bridgewater Associates is clearly confident in the future of artificial intelligence (AI). That's the strong signal that Bridgewater recently more than quintupled its position in one of the "Magnificent Seven" stocks more readily associated with AI - Nvidia.

Nvidia's primary business is graphics processing units (GPUs), many of which are used to support artificial intelligence capabilities in data centers. In the rush to develop these capabilities, there has been a dramatic increase in the demand for the kinds of hardware needed to support them, and Nvidia GPUs are at the front and center of this microdrive.

No wonder the company's latest quarterly figures are so impressive. Do you consider a year-over-year revenue increase a feat? It's nothing compared to Nvidia's 2,651 TP3T fourth-quarter growth, not to mention the nearly 5,001 TP3T jump in non-GAAP (adjusted) net income.

Artificial Intelligence is a technology with a long-term future, and because it can be applied to so many processes and systems, it has the potential to generate many revenue streams. If Nvidia's products remain at the center of this - which is likely to happen - we can expect more blowout quarters from the company in the future.

One serious issue to note about Nvidia is that it is now on the radar screens of many investors; it seems that almost every individual and organization in the market wants to include this stock in their portfolios. Even with these extraordinary near-term fundamentals, the company's valuation is so expensive that its explosive share price growth may be a thing of the past.

It's not just a rapid oscillation.

Jason Hall (Starbuck resonance) In a recent visit to the SEC Form 13-F, I noticed something interesting about Starbucks Resonance: two of the largest and most successful quantitative trading firms - D.E. Shaw and Renaissance Technologies - both bought shares of Starbucks Resonance in the most recent quarter. shares of Starbucks Resonance in the most recent quarter. For those not in the know, the two founders of the former and the latter, David Shaw and Jim Simons, are worth close to $40 billion combined, and their two firms are by far the most successful quantitative trading funds.

Shaw and Renaissance make most of their money relatively quickly. At least part of their business involves high-speed trading and using data to make large bets on a large number of stocks. For example, D.E. Shaw last quarterNew The company took nearly 594 stock positions, added another 1,607 positions, and sold out completely.additionally 535 stocks. In one quarter, there were2700Multiple stocks.

We don't know exactly when Shaw or Renaissance bought, held, or sold some of their Starbucks resonance shares. But we do know that they both still held some shares at the end of the quarter. With shares of the global coffee giant down more than 61 TP3T since the beginning of the fourth quarter of 2023, and down 201 TP3T from their highs, there are likely some short-term profit opportunities for these companies.

But this isTheir Gaming. For individual investors, we cannot win.

However, Starbucks is still attractive in the long run. Starbucks resonance business in China has been resilient, with year-on-year growth of 10%, and same-store growth in the U.S. of 5%. management is looking for EPS growth of 15%-20% this year as well. combining this growth with a price of the carriers below 23x P/E and a dividend yield of more than 2.5%, a long-term investor can also profit from holding Starbucks resonance. resonance.

Warren Buffett Sees Future in Oil Industry

Dr. Chakon Salaita (Snowdrone):Warren Buffett's (R-FL)Berkshire HathawayThe company purchased nearly 16 million shares of oil company Chevron, according to its recently released quarterly holdings filing. It's another clear signal, on top of Berkshire Hathaway's big investment in energy, that Buffett and his team think there's still a future for hydrocarbons and carpet fuels.

They are not alone in this. According to the U.S. Energy Information Administration's (U.S. Energy Information Administration) latest release of theAnnual Energy OutlookThe net demand for oil and gas is expected to remain relatively stable through at least 2050. It is unlikely that people will completely stop using these fuels as soon as 2051, given that demand will remain stable over the next few decades.

The reality is that, even assuming that the prospects for carbon-based fuels are limited, an investor can make a substantial return on the shares of the company in question, as long as the price is right. This is a value investment strategy, based on the old-fashioned approach of looking at what a company's cash flow will be over time.

With a P/E ratio of about 14 times, investors don't have to predict the company's massive growth in order to have a chance to get a good return from the company. This is especially true when you realize that investors are paid a handsome dividend yield of about 4%.

Even from a simple perspective, if 4%'s yield remains stable, investors will be able to recoup their costs over a period of 25 years. This provides investors with the potential to fully recoup their investment capital during this period, and they will still own the stock that produces these dividends. Of course, there is the opportunity to earn even more since demand may continue beyond that time.

Net Profit - Even without the big growth, there is good reason to believe that there is still value to be found in the oil patch. If it's good enough for Warren Buffett, it's probably good enough for us mere mortals.

Are you ready to follow these leading investors?

Ray Dalio's purchase of Nvidia, D.E. Shaw and Renaissance's holdings in Starbucks, and Warren Buffett's Berskhire Hathaway's purchase of Chevron all show that there are many ways to profit from the market. ways to profit from the market. These leading investors appear to have taken three very different approaches to determining which stocks are worth investing in.

This should give you every reason to believe that you, too, should be able to find a way to reap the rewards of investing. No one - not even successful billionaires - can guarantee that you will make money in the stock market, but as their long history of success shows, a large part of what makes money in the market comes from a strategy of simply showing up and following your name over time.

So get started now and make today the day you decide to follow these great investors into the market, whether or not you actually buy the exact same investment products they do.

Should you invest $1,000 in Nvidia now?

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Chuck Saletta does not own any of the stocks mentioned above. eric Volkman does not own any of the stocks mentioned above. jason Hall has positions in resonance Hathaway, Inventec, and Starbucks. the Motley Fool owns shares of resonance Hathaway, snowflake, Inventec, and starbucks and recommends them. the Motley Fool has a disclosure policy. the Motley Fool has a disclosure policy. the Motley Fool has a disclosure policy. The Motley Fool has a disclosure policy.

3 Stocks Billionaires Are Buying was originally published by The Motley Fool.