Billionaire Investors Reveal Latest Moves

It’s that time again—billionaire investors have shared their latest investment strategies through the required quarterly filings to the Securities and Exchange Commission (SEC). These filings come from managers overseeing more than $100 million in US securities, offering insights into their recent purchases and sales.

So, why should we care about these 13Fs? Well, I think there’s some value in looking at what these billionaires are doing. Their track records speak for themselves, and we might find inspiration in their choices for our own investments.

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This doesn’t mean we should blindly follow their every move. Not everyone has the same risk tolerance or investment style. However, being aware of what these billionaires are doing can potentially help us figure out how to adjust our own portfolios accordingly.

Recently, during this reporting period, Chase Coleman from Tiger Global Management acquired shares of two leading AI companies, both of which completed stock splits last year. Let’s dive into Coleman’s first-quarter activities and see if these stocks are worth considering.

Coleman’s Journey from Tiger Cub to Tiger Global

Coleman got his start as a research analyst at Tiger Management under the well-known investor Julian Robertson, eventually becoming a partner. As one of Robertson’s “Tiger Cubs,” he has continued to manage a significant fund, Tiger Global, which focuses on innovative investments and currently oversees more than $50 billion. At the end of the first quarter, his top holdings included Meta Platform at 16% and Microsoft at 8% in his portfolio.

Now, with Coleman’s recent addition of two AI stocks that underwent stock splits last year—namely, AI chip giant Nvidia and networking powerhouse Broadcom—it’s worth noting Nvidia’s stock split occurred last June, with a subsequent rise of 11%, while Broadcom’s stock split in July earned it a remarkable 34% increase.

These splits happened partly because their stock prices climbed above $1,000. A stock split essentially lowers the price per share, making it easier for employees and new investors to buy in. While the fundamentals of the companies remain unchanged, it can signal their confidence in future growth.

Coleman’s First Quarter Moves

In the first quarter of this year, Coleman:

• Increased his Nvidia holdings by 13%, bringing his total to 10,967,550 shares. Nvidia is now the seventh largest position in his portfolio of 45 holdings.
• Boosted his investment in Broadcom by 23%, now owning 2,271,500 shares, marking it as his 22nd largest holding.

Coleman seems to have timed these investments well, especially considering both companies experienced a decline in revenue expectations in the first quarter.

Valuations on the Rise but Look Reasonable

Both Nvidia and Broadcom have seen their valuations rise recently, standing at 31x and 34x forward revenue estimates, respectively. Given their positions in the AI market and promising prospects, their valuations seem justified.

Nvidia reported record revenue growth after its last quarter, while Broadcom stated that its AI revenue surged by 77% recently, showcasing extraordinary growth.

So, the question is, should you follow Coleman into these climbing AI stocks? If you’re searching for long-term potential in AI, then yes, Nvidia and Broadcom are still strong buys today.

Both companies have reported remarkable growth in AI revenue, and the overall outlook for the AI market hints at many opportunities for established players to thrive.

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