Superinvestors’ top ten favourite stocks

While every billionaire investor has his or her own unique approach and portfolio, there are 10 stocks that seem to attract nearly every superinvestor.

Dataroma tracks the portfolios of value-oriented superinvestors by extracting data from financial filings, including the top 10 most owned stocks from these superinvestors.

Specifically, Dataroma tracks Form 13F filings from superinvestors with the Securities and Exchange Commission in the United States.

These reports must disclose their equity holdings, giving retail investors a glimpse into where superinvestors invest their money.

Institutional investment managers with $100 million or more in assets under management must file quarterly Form 13F reports.

Therefore, the platform can track billionaires like Warren Buffett, Bill Gates, Bill Ackman, Seth Klarman and Carl Icahn.

Every one of these investors has a unique philosophy when it comes to what they invest in, but their conclusions often lead to the same companies.

For the past few years, most of these super investors have favoured mega-cap technology stocks, specifically the so-called ‘Magnificent Seven’—and for good reason.

The Magnificent Seven are the tech giants Microsoft, Apple, Nvidia, Amazon, Alphabet, Meta Platforms, and Tesla.

These stocks’ valuations have generated considerable attention, with the companies’ share prices skyrocketing since the end of 2022. 

Critics have argued that these companies’ valuations are unjustified, with some comparing them to the Dotcom bubble of the early 2000s.   

However, the advent of generative AI language models, like ChatGPT, has provided the catalyst for the surge in the share prices of these seven companies. 

Over the past 11 years, the collective market capitalisation of the Magnificent Seven companies has grown from just over US$1 trillion to well over $13 trillion. 

This represents a remarkable compounded annual return of 24.3% – doubling the S&P 500’s capital return of 12% over the same period. 

Therefore, it is no surprise that billionaire investors look to these stocks when chasing good returns.

However, included in their top 10 most owned stocks are also some surprising choices, like UnitedHealth Group, a US multinational health insurance and services company.

The Motley Fool explains that the company’s vertically integrated business and vast network of physicians, patients, and other various institutions that use its services grant it a solid competitive advantage.

“Its brand name has come to be associated with excellence in delivering critical healthcare services,” the publication explains.

“That’s why the company hasn’t reached a ceiling yet; far from it. Long-term investors will benefit from adding shares of this stock to their portfolios.”

Legendary investor Warren Buffet’s firm, Berkshire Hathaway, also cracked the top 10 most-owned stocks among superinvestors.

While it may seem strange for one investor to invest in another’s firm, Buffett’s legendary status and track record in the investment speaks for itself.

Berkshire Hathaway has been one of the best-performing investments of all time, greatly outperforming the returns of the S&P 500 index over the past 30 years. 

Therefore, it is no surprise that superinvestors turn to Buffett’s firm when looking for a good investment.

Below are the top 10 most owned stocks among the superinvestors tracked by Dataroma.