HomeMost PopularThe Magnificent Seven Stocks: A Tale of Two Billionaires & Their Investments

The Magnificent Seven Stocks: A Tale of Two Billionaires & Their Investments

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The Diverse Holdings of Tepper and Soros

David Tepper and George Soros, legendary investors, have amassed colossal fortunes through their strategic hedge fund investments. Tepper, with a net worth nearing $20.6 billion, and Soros, worth approximately $6.7 billion after endowing $18 billion to his foundation in 2018, possess divergent investment styles. Yet, they converge on a select group of stocks, dubbed the โ€œMagnificent Seven.โ€

Exploring the Magnificent Seven

In the hedge funds managed by Tepper and Soros, a vast majority of the Magnificent Seven stocks find a home. Exceptionally, Tesla remains unowned by either fund. Tepperโ€™s tech-centric strategy sees him heavily invested in most of these elite stocks, including Meta Platforms and Microsoft. Noteworthy is Tepperโ€™s significant holding in Nvidia, despite trimming down his stake in late 2023. On the flip side, Soros, too, embraces tech, with Apple being the only Magnificent Seven stock exclusive to his portfolio and not Tepperโ€™s.

The Common Denominators

Alphabet and Amazon emerge as the shared ground for both Tepperโ€™s Appaloosa Management and Soros Fund Management. While Amazon ranks high in Appaloosaโ€™s holdings, Tepper augmented his stake in this e-commerce behemoth during the last quarter of 2023. On the Soros end, Amazon constitutes a smaller portion of the portfolio, with a reduced holding at the close of 2023. Similarly, Alphabet held varying positions in the funds, with Tepper downsizing his share and Soros partially divesting from the tech giant.

Deciphering the Investment Puzzle

While mirroring the investments of Tepper and Soros might not be a golden ticket for other investors, the shared ownership of Alphabet and Amazon by these titans hints at something special. Both companies stand to benefit from the unfolding AI revolution, with a shift towards cloud-based AI applications expected. Amazonโ€™s AWS and Alphabetโ€™s Google Cloud are poised for significant growth in the years ahead. Furthermore, the trajectory of self-driving cars, particularly in the realm of robotaxis, presents another growth avenue for Alphabet and Amazon, with their respective projects leading the charge. Amidst these promising developments, the future looks bright for investors eyeing sustained gains through these tech giants.

โ€œShould you hitch your wagon to Alphabet and Amazon, too?โ€ one might ponder. The allure of future riches lures many into contemplating this very question. The stars seem aligned for these tech powerhouses, promising abundant returns for those in the know, potentially including not just Tepper and Soros, but perhaps even you, dear reader.

Before diving into Amazon or Alphabet, delve into this tidbit: The Motley Fool Stock Advisor crew has handpicked the 10 best stocks they believe will carve out monstrous returns in the time to come. While Amazon didnโ€™t make the cut, these 10 stocks beckon as potential wealth generators in the foreseeable future. With a remarkable track record of beating the S&P 500 since 2002, the Stock Advisor service offers a roadmap to success, delivering insightful market updates, a robust portfolio blueprint, and two fresh stock picks each month for discerning investors.

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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, sits on The Motley Foolโ€™s board of directors. Suzanne Frey, an executive at Alphabet, is also part of The Motley Foolโ€™s board of directors. Another interesting member is Randi Zuckerberg, former director of market development and spokeswoman for Facebook, and sister to Meta Platforms CEO Mark Zuckerberg. Not to forget, Keith Speights has stakes in Alphabet, Amazon, Apple, Meta Platforms, and Microsoft. The Motley Fool holds and recommends positions in Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla. Additionally, The Motley Fool approves specific options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool adheres to a strict disclosure policy.

The thoughts expressed here are solely of the author and do not necessarily mirror those of Nasdaq, Inc.

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