Billionaires Bullish on Big Tech: ETFs in Focus
Who doesn’t dream of becoming an iconic investor like Warren Buffett, Carl Icahn, Daniel Loeb, David Tepper, Stanley Druckenmiller or David Einhorn? Keeping investors’ aspirations in mind, we have profiled a few stocks and ETFs below that billionaire investors are currently picking.
The latest 13-F filings of billionaires indicate that most are still bullish on big techs, even after a 32.6% price rise in Roundhill Magnificent Seven ETF MAGS. 13F disclosures should not be viewed as direct indicators, but as tools to strengthen confidence in a particular market sector or area.
Keeping investors’ aspirations in mind, we have profiled an area — Big Tech — that billionaire investors are betting on currently.
Follow Warren Buffett by Investing in Apple
Billionaire investor Warren Buffett is known for his winning investing style. Buffett’s company Berkshire Hathaway’s latest 13-F filing showed that Berkshire’s $313 billion portfolio was invested in 45 companiesin the third quarter of 2023. Berkshire was a net seller of about $5.3 billion in stocks during the quarter.
Buffett is outright bullish on Apple AAPL despite its slowing growth. Apple remains his largest holding at a staggering 50% allocation. Buffett famously loves cash-rich companies. Even though Apple’s growth has slowed, it still has a hoard of cash on hand. However, Buffett pared a small holding in Amazon (AMZN).
Investors intending to follow Buffett and be part of Apple’s value as well as growth story, can play ETFs like iShares Dow Jones US Technology ETF IYW, Select Sector SPDR Technology ETF XLK and Vanguard Information Technology ETF (VGT).
David Tepper Bets on Big Tech
Tepper expects the strength in big-cap tech to continue. His top five positions include Nvidia NVDA (increased stake by 580%), Meta Platforms META, Microsoft MSFT, Amazon (AMZN), and Alibaba (BABA). With interest rates likely to fall in 2024 and tech being the essence of the new normal lifestyle, Tepper’s bets make sense. However, David Tepper's Appaloosa exited position in Apple in the third quarter.
Roundhill Magnificent Seven ETF (MAGS) would be a good bet for following David Tepper. Investors can play Alibaba-heavy ETFs like MicroSectors FANG+ ETN FNGS and ProShares Online Retail ETF ONLN. ETFs like ONLN, Vanguard Consumer Discretionary ETF VCR and Consumer Discretionary Select Sector SPDR Fund (XLY) are good for Amazon plays.
The stock MSFT has a strong position in ETFs like Technology Select Sector SPDR Fund XLK and Fidelity MSCI Information Technology Index ETF FTEC. The stock META has a huge weight in Communication Services Select Sector SPDR Fund XLC andFidelity MSCI Communication Services Index ETF (FCOM).
Stanley Druckenmiller: A Fan of AI
Stanley Druckenmiller is perhaps best known for breaking the Bank of England with famed investor George Soros in 1992. Druckenmiller has maintained a winning record throughout his career, spanning over three decades, without ever experiencing a losing year.
Druckenmiller’s top five positions include NVDA (reduced by 7%), Korean e-commerce company Coupang (CPNG), Microsoft MSFT (added 22%), Eli Lilly LLY and Teck Resources (TECK). In the past, Druckenmiller has compared the potential of artificial intelligence (AI) with the Internet, making it unsurprising that he has a significant allocation in this sector.
Although he decreased his position in NVDA, it still constitutes his largest investment, suggesting his continued optimism about the stock while possibly engaging in tactical trading within his core position. Nvidia has a solid position in VanEck Semiconductor ETF SMH and AXS Esoterica NextG Economy ETF WUGI.
Follow Bill Ackman by Investing in Alphabet
Bill Ackman, too, has exposure to AI. The value of Alphabet’s position was $1.2 billion at the end of September. His portfolio also held about $569.9 million worth of Alphabet's Class A shares. Alphabet-heavy ETFs are XLC, FCOM and Vanguard Communication Services ETF VOX. Each fund holds GOOG shares at about 10%.
Jim Simons Loves Microsoft Amongst Magnificent Seven
Simonsis known for his quantitative approach to investing. He has established a highly successful hedge fund, utilizing intricate algorithms and comprehensive data analysis for trading decisions. His approach, grounded in science and a critical view of statistical anomalies, has redefined excellence in the investment industry. Simons has also boosted stakes in companies like Microsoft, Netflix (NFLX). Although he still holds Meta and Tesla, their positions have been reduced considerably.
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Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Eli Lilly and Company (LLY) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Technology Select Sector SPDR ETF (XLK): ETF Research Reports
VanEck Semiconductor ETF (SMH): ETF Research Reports
Vanguard Consumer Discretionary ETF (VCR): ETF Research Reports
Vanguard Communication Services ETF (VOX): ETF Research Reports
Fidelity MSCI Information Technology Index ETF (FTEC): ETF Research Reports
iShares U.S. Technology ETF (IYW): ETF Research Reports
Roundhill Magnificent Seven ET (MAGS): ETF Research Reports
Communication Services Select Sector SPDR ETF (XLC): ETF Research Reports
ProShares Online Retail ETF (ONLN): ETF Research Reports
MicroSectors FANG+ ETN (FNGS): ETF Research Reports
AXS Esoterica NextG Economy ETF (WUGI): ETF Research Reports
Meta Platforms, Inc. (META) : Free Stock Analysis Report
