Recent Moves by Billionaire Investors
Warren Buffett has made headlines with his latest acquisition, adding Alphabet to his Berkshire Hathaway portfolio. It’s an interesting turn, especially considering his historical skepticism toward tech companies.
In a surprising twist, Ken Griffin has reversed his stance on the Chinese electric vehicle manufacturer, Nio. Meanwhile, Chase Coleman III’s Tiger Global Management has made a notable entry into Netflix.
Thanks to regulations by the U.S. Securities and Exchange Commission (SEC), we can peek into how these billionaires allocate their investments. November’s filings revealed some eye-catching choices from Buffett, Griffin, and Coleman as they reported their late-year trades.
Buffett, known for avoiding tech stocks, has recently taken steps to embrace them. His latest move? A significant position in Alphabet, with Berkshire Hathaway acquiring over 17.8 million shares for roughly $3.6 billion, translating to about $200.68 each. Fast forward to today, and Alphabet’s stock is flying high at approximately $313 per share, indicating a robust profit of around $2 billion for Buffett within a mere six months.
Under new management, there seems to be a strategic shift at Berkshire, leaning more toward tech investments. Although the company already holds a massive portfolio, Alphabet’s continued success—bolstered by a growing YouTube audience and well-received AI tools like Gemini—suggests it’s a fruitful choice at the moment.
Conversely, Ken Griffin’s Citadel Advisors boasts a much broader investment palette with over 14,000 holdings. Yet, Nio remains a persistent fixture. Griffin’s initial purchase back in 2018 was at about $6.26 per share, but he watched it soar to $62.84 in 2021, only to see a downturn to $3.14 by last spring.
Despite seeing Nio’s production ramping up, Griffin seemed pessimistic in the second quarter of last year, trimming both his stock and call options. Yet, in an unexpected shift, he later piled on about 5 million shares, boosting his stake to an impressive $48.3 million. He also increased call options to a total value of $103.7 million. This move indicates a newfound optimism about the automaker’s prospects, even as the stock fluctuates around $5.35.
Meanwhile, Chase Coleman’s Tiger Global Management Fund has made headlines for its daring investment in Netflix, acquiring shares at an average price of $122.66—costing nearly $250 million. One wonders if he foresaw Netflix’s upcoming endeavors or if perhaps he’s just a fan of its popular series. Currently, though, the stock has dipped to about $94.14, well below his purchase point.
Nonetheless, investing success is often measured over the long haul. If Netflix reports strong earnings soon, or if any developments surrounding Warner Bros. Discovery come into play, the stock’s trajectory could change dramatically. Investors should definitely keep an eye on how this unfolds.
As a side note, before diving into investments in companies like Alphabet, one might want to explore alternatives too. There are actually ten stocks that some analysts believe could yield impressive returns, which might be worth considering as well.
