# billionaires’ Top Choice: Meta Platforms Surges in Popularity

## Importance of 13F Filings in Investment Strategy

For many investors, earnings season is crucial. However, the filing of Form 13Fs with the SEC is equally significant. This filing, required within 45 days after a quarter’s end, reveals the stocks and ETFs institutional investors managing over $100 million are buying or selling. The deadline for these filings was May 15.

## Convergence of Investment Styles on Meta Platforms

Despite the variety of public companies, it is uncommon for multiple billionaire fund managers to select the same stock as their primary holding. Recently, four notable investors favored one stock: Meta Platforms (NASDAQ: META).

### Different Investment Strategies

The four managers have distinct investment styles:

– **Philippe Laffont** of Coatue Management oversees $22.7 billion and focuses on large-cap growth stocks.
– **Chase Coleman** at Tiger Global manages approximately $26.6 billion and favors growth stocks but prefers small caps.
– **Terry Smith** leads Fundsmith with $22 billion, known for his value investing approach akin to Warren Buffett.
– **Stephen Mandel** of Lone Pine Capital manages about $11.6 billion, utilizing a mix of growth stocks and turnaround opportunities.

While investors might expect Nvidia to be the shared top choice, it is not. Instead, that honor goes to Meta Platforms.

## Meta Platforms: The Billionaires’ Favorite

Meta has emerged as the top holding for Laffont, Coleman, Smith, and Mandel. As per the latest 13F filings, Meta accounted for:

– **Coatue Management**: 9.55% of assets
– **Tiger Global Management**: 16.18%
– **Fundsmith**: 10.19%
– **Lone Pine Capital**: 8.75%

Since its IPO in May 2012, Meta’s stock has soared 1,570%. Multiple factors have contributed to this rise.

### Key Factors Driving Meta’s Success

1. **Dominant Social Media Presence**: Meta’s platforms, including Facebook and Instagram, attract an average of 3.43 billion daily active users, giving it significant ad-pricing power.

2. **Strong Operating Performance**: Nearly 98% of Meta’s net sales are tied to advertising, benefiting from prolonged economic expansions over typical recessions.

3. **AI Market Potential**: Meta is integrating generative AI tools into its platforms, enhancing advertising capabilities while positioning itself for future growth.

These attributes have solidified Meta Platforms’ position as the preferred choice among prominent billionaires.

Meta Platforms Attracts Investment Due to Cash Reserves and Growth Potential

Meta Platforms is establishing itself as a significant player in the metaverse, where virtual interaction thrives. CEO Mark Zuckerberg tends to delay monetizing innovations until the optimal moment.

Strong Financial Position Sparks Interest

Philippe Laffont, Chase Coleman, Terry Smith, and Stephen Mandel have shown interest in Meta, driven partly by its robust balance sheet. As of March, Meta reported over $70 billion in cash, cash equivalents, and marketable securities, accompanied by $24 billion in net cash from its operations during the first quarter. This financial cushion allows the company to pursue growth opportunities and take calculated risks.

Attractive Valuation Despite Growth Prospects

Meta is projected to maintain mid-teen sales growth, with a forward P/E ratio of 22 that appears appealing.

Investment Considerations

Potential investors should weigh Meta’s prospects carefully. The Motley Fool analyst team has identified 10 stocks they believe offer better returns than Meta. Historically, companies like Netflix and Nvidia have significantly increased in value after being recommended, highlighting the risks and rewards of stock selection.

The Motley Fool averages a total return of 982%, outpacing the S&P 500, which stands at 171%.

For further insights, visit here.

Randi Zuckerberg has previous ties with Facebook and serves on The Motley Fool’s board. Sean Williams holds shares in Meta. The Motley Fool has recommendations for both Meta and Nvidia.

The views and opinions expressed herein are solely those of the author and do not necessarily reflect those of Nasdaq, Inc.