Super-investors are betting heavily on big tech stocks, with Amazon, Meta, Microsoft, and Alphabet in the top 5 most bought stocks by top investors in Q4 2022.
Investors who manage over $100 million in assets are required by law to file a 13F form with the SEC declaring their holdings within 45 days of the end of the last quarter.
It allows ordinary investors to see where the best in the business are allocating their capital as their purchases, sales, and portfolio holdings can be tracked.
In the last quarter of 2022, super-investors allocated capital heavily towards big tech, with Amazon, Meta, Microsoft, and Alphabet (Google) making up the most bought shares.
It continues the trend seen in the second half of last year, with mega-cap tech shares being the most bought in Q3 2022.
Other popular shares among this elite group include Walt Disney, Salesforce, Apple, Brookfield Asset Management, and Bank of America.
The top 10 most owned shares going into 2023 are dominated by big tech, with the top tech companies once again topping the list. Alphabet remains the most owned share among super-investors.
The tech-heavy bias is down to the fact that tech stocks tend to bounce back after a period of poor performance.
The tech sector is also relatively cheap after the decline in their share prices in 2022, with their average P/E dropping to 24 times earnings – well below when their historical average of above 30 times.
Furthermore, many tech companies have dramatically reduced their overhead costs with mass layoffs. It should result in leaner, more cash-flow-generative businesses and greater returns to shareholders.
However, the macroeconomic environment cannot be ignored. The market is pricing in cooling inflation in 2023 and rate cuts towards the end of the year.
The top 10 buys from super-investors across the last two quarters are listed below, alongside the top 10 shares most owned by super-investors.
|Top 10 Buys 4Q 2022||Top 10 Buys 2nd Half of 2022||Top 10 Most Owned|
|Microsoft||Microsoft||Alphabet Class C|
|Alphabet Class C||Alphabet||Meta Platforms|
|Alphabet||Alphabet Class C||Amazon|
|Salesforce||Walt Disney||Berkshire Hathaway|
|Apple||Visa||United Health Group|
|Brookfield Asset Management||Bank of America||Bank of America|
|Bank of America||Booking Holdings.||Mastercard|