To The Moon

Who doesn’t dream of becoming an iconic investor like Warren Buffett, Carl Icahn, Daniel Loeb, David Tepper or David Einhorn? Keeping investors’ aspirations in mind, we have profiled a few stock and ETF picks below that billionaire investors are betting on currently.

Warren Buffett's reputation as an investment achiever is known to all. No wonder, his recent 13F filing is in the spotlight. In the second quarter, Buffett’s company Berkshire Hathaway established positions in three new stocks, namely $NVR Inc(NVR)$ , $Lennar(LEN)$ and $D.R. Horton(DHI)$ .

Notably, these three stocks have positions in $iShares U.S. Home Construction ETF(ITB)$ and $SPDR S&P Homebuilders ETF(XHB)$ . Buffett is a fan of value investing. Berkshire’s acquisition of three stocks despite a great rally this year is a tell-tale sign of the remaining value quotient in the homebuilding space (read: Is It Time to Buy Homebuilding ETFs Following Warren Buffett?).  

Agreed, steep home prices and higher rates are concerns. But investors should not forget that demand resumed after the initial surge in mortgage rates, as buyers became used to a new normal interest rate environment.

Take a Bite Out of Apple With Warren Buffett

Buffett’s Berkshire Hathaway has invested 51% of its stake in Apple. Apple shares have been performing better than the industry year to date. It is benefiting from steady demand for iPhone 14 and 14 Plus as well as its expanding footprint in emerging markets. Growing services subscriber base and improving customer engagement are tailwinds for the services business.

Apple’s focus on autonomous vehicles and augmented reality/virtual reality technologies presents a growth opportunity for the long haul. Notably, while Apple lacks on value currently, it is still a good growth stock. Also note that Apple-heavy $iShares U.S. Technology ETF(IYW)$ has a Rank #1 (Strong Buy).

Follow Bill Ackman by Investing in AI

Bill Ackman increased his exposure to artificial intelligence (AI) in the second quarter. His Pershing Square fund loaded up about 1.3 million of Alphabet's (GOOG) Class C shares in the period, lifting the value of its position to $1.1 billion at the end of June. It also held about $262 million worth of Alphabet's Class A shares.

Alphabet’s the search giant’s AI research group – Google DeepMind – is reportedly developing at least 21 new generative AI features. Alphabet shares have a moderate Value score of C and a good Growth score of B. Alphabet has solid exposure to ETFs like $Communication Services Select Sector SPDR Fund(XLC)$ and $Fidelity MSCI Communication Services Index ETF(FCOM)$ .

Moreover, Ackman and his team added to their $Hilton(HLT)$ stakes. The hotelier has considerable exposure to $Kelly Hotel & Lodging Sector ETF(HOTL)$ and $Defiance Hotel Airline and Cruise ETF(CRUZ)$ .

Nvidia Continues to Get Billionaire’s Love

Several of the world's leading investors and funds bet big on $NVIDIA Corp(NVDA)$ stock — another AI pick — last quarter. The AI-boom would continue to spur demand for graphics chips. Dan Loeb's Third Point, Soros Fund Management, and Jeremy Grantham's GMO all established stakes in Nvidia last quarter, per the source.

Not only the trio, David Tepper's Appaloosa Management, Jim Simons' Renaissance Technologies, Paul Tudor Jones' Tudor Investment Corporation, Steve Cohen's Point 72 Asset Management, Stanley Druckenmiller's Duquesne Family Office, and the investment arm of the Church of Jesus Christ of Latter-day Saints all raised their Nvidia positions in the period.

Nvidia has a double-digit focus on $VanEck Vectors Semiconductor ETF(SMH)$ , $Esoterica NextG Economy ETF(WUGI)$ , $Simplify Volt RoboCar Disruption and Tech ETF(VCAR)$ and $Global X Robotics & Artificial Intelligence Thematic ETF(BOTZ)$ .

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