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Mastering the Markets: 3 Powerhouse Stocks Leading the Charge in this Investing Legend’s Portfolio Mastering the Markets: 3 Powerhouse Stocks Leading the Charge in this Investing Legend’s Portfolio

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Ken Fisher of Fisher Asset Management comes from investing royalty. His father, Philip Fisher, penned the investment classic “Common Stocks and Uncommon Profits,” touted by Morningstar as “one of the great investors of all time.” Following in his father’s footsteps, Ken manages a staggering $265 billion in assets under management (AUM).

Despite its massive size, Fisher Asset Management has showcased incredible gains over the past decade. The firm boasts 10-year annual returns exceeding 58%, with a remarkable 63% return over the last five years. In the most recent 12 months alone, Fisher has surged by 24%.

Amid a wide-ranging portfolio comprising over 900 companies, three stocks shine as the crown jewels in this investing luminary’s holdings.

E-Commerce Giant: Amazon (AMZN)

An image showing the Amazon logo on a phone, held against a stock chart to symbolize Amazon stock

Source: Daniel Fung / Shutterstock

Amazon (NASDAQ:AMZN), though currently occupying the fifth spot in Fisher’s portfolio by value, has flaunted stellar performance this year. AMZN shares have surged by 20% year-to-date and a remarkable 76% over the past year.

Renowned for its indispensability in the economy, Amazon’s addition to the Dow Jones Industrial Average was a significant milestone. The company’s e-commerce platform and cloud services business, crucial for numerous online entities, have driven its success.

Amazon’s cost-saving measures and AI integration are reaping rewards, evident in robust revenues and improved profit margins. Notably, advertising revenue soared by 27% last quarter to $14.7 billion, propelling Amazon to become the third-largest ad platform after Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) and Meta Platforms (NASDAQ:META).

Fisher holds 41.8 million Amazon shares valued at $7.6 billion, constituting the fourth-largest position in his portfolio at 3.7% of the total. With an average purchase price of approximately $54 per share, Fisher has witnessed his investment triple in value.

Tech Titan: Microsoft (MSFT)

Close-up of the Microsoft logo. Microsoft (MSFT) Flagship Store at Fifth Avenue, Manhattan, NYC.

Source: The Art of Pics / Shutterstock.com

Microsoft (NASDAQ:MSFT) commands the largest share of Fisher’s portfolio, standing at 5%. Few firms are as synonymous with AI as Microsoft, which has seamlessly integrated OpenAI’s ChatGPT generative AI technology across its operations, reaping significant dividends.

AI’s contribution added 600 basis points to Microsoft’s Azure cloud services business last quarter, doubling the previous quarter’s growth. Furthermore, AI enhances Microsoft’s ability to secure more substantial deals over prolonged periods.

Customers favor Azure as it facilitates a seamless transition to cloud services at their own pace. The hybrid setup empowers users to select their preferred service level and location, whether on-premises, in the cloud, or a blend of both. Expect AI’s efficacy to surge further in the upcoming quarters.

With 25.4 million MSFT shares valued at $10.7 billion, Fisher has reaped gains of 291% to date, given his average purchase price of $107 per share.

Tech Giant: Apple (AAPL)

Apple (AAPL) logo at the entrance of a store, American multinational boutique corporation dealership shop. Apple Layoffs

Source: sylv1rob1 / Shutterstock.com

The second-largest holding in Fisher Asset Management is Apple (NASDAQ:AAPL). Despite myriad challenges facing the consumer electronics behemoth, Apple has tripled Fisher’s investment from an average buy-in price of $51 per share. However, obstacles abound.

Foremost among these challenges is the Justice Department’s antitrust lawsuit against Apple. While some claims seem tenuous, like asserting a monopoly with only a 57% share of the domestic smartphone market, this legal battle could distract management as they defend against the allegations.

Apple also confronts hurdles in China, a key market witnessing a significant sales slowdown. iPhone sales in China reportedly plunged by 33% in January and February, according to Bloomberg News. The forthcoming iPhone 16 launch, potentially featuring Google’s AI technology, could potentially drive impressive sales.

Although Apple stock has dipped by 9% year-to-date, the company remains far from reaching the end of its success trajectory.

Rich Duprey has been covering stocks and investment for two decades, with his work featured on Nasdaq.com, The Motley Fool, Yahoo! Finance, and cited by various U.S. and international publications.

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

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