From Warren Buffett’s record cash stockpiling to David Tepper’s big bet on AI in China, these moves reflect their outlook on upcoming investment trends.
Warren Buffett: Hoarding Cash and Selling Financial Stocks
Warren Buffett, the “Oracle of Omaha,” is a value investor who seeks out solid companies trading below their intrinsic value. His long-term holding strategy is evident in his decades-long investments in American Express (since 1984), Coca-Cola (since 1988), and Moody’s (since 2000).
Buffett’s most notable move in recent years has been building a large position in Apple, which has become Berkshire’s largest investment. However, in recent quarters, he has started selling Apple, sparking concerns about slowing innovation and growth.
In Q4, Buffett reduced his holdings in financial stocks. He trimmed his position in Bank of America, one of his largest investments, and sold off Capital One Financial and Citigroup entirely. However, he retained American Express, which accounted for 16.8% of Berkshire’s portfolio.
On the buying side, he continued to accumulate Occidental Petroleum, while surprisingly doubling down on Domino’s Pizza and increasing his stake in Pool Corp. by 50%. New additions to Berkshire’s portfolio also included Constellation Brands, the giant behind popular drinks like Corona and Modelo beers.
Notably, Berkshire Hathaway’s cash reserves reached a record high of $371.8 billion. As of Q4, about 56% of Berkshire Hathaway’s portfolio was concentrated in three stocks: Apple, American Express, and Bank of America.
Top 10 Holdings of Berkshire Hathaway as of Q4 2024
David Tepper: Betting Big on AI in China
David Tepper, founder of Appaloosa Management, is known for his aggressive investment style. His strategy combines in-depth fundamental analysis with a macro approach. He often makes bold bets on sectors or companies that other investors shy away from, earning him respect on Wall Street.
Tepper is currently making a significant bet on AI. Out of his top 10 holdings, nine are related to this field. He increased his stake in Alibaba by 18%, pushing the total investment past $1 billion. Alibaba is heavily investing in AI and recently claimed that its newest model, Qwenn2.5-Max, surpasses both GPT-4 and DeepSeek-V3—a bold statement underscoring their AI ambitions.
Tepper also doubled down on ASML, the Dutch chip manufacturing giant. Additionally, he bolstered investments in energy infrastructure serving AI through Vistra, NRG Energy, and Expand Energy. Despite trimming his positions in Amazon and Meta, he increased his holdings in Nvidia.
Top 10 Holdings of David Tepper as of Q4 2024
Ray Dalio: Diversifying with Over 800 Stocks in His Portfolio
Ray Dalio, founder of the world’s largest hedge fund, Bridgewater Associates, showcases a clear diversification strategy with over 800 stocks in his portfolio.
Despite holding over 800 different stocks, Dalio made some notable changes this quarter, particularly in the energy sector. In Q4, he doubled down on Vistra and Constellation Energy. Conversely, he trimmed his holdings in the “Magnificent Seven,” reducing his positions in Google, Meta, Amazon, and Microsoft by around 20%.
Dalio also doubled his stakes in PayPal and Salesforce and quintupled his investment in AT&T. Additionally, he bet on the tobacco industry, increasing his Altria stake by 85% and British American Tobacco by 3.6 times.
Top 10 Holdings of Ray Dalio as of Q4 2024
Michael Burry: Pulling Back from the Chinese Market
Michael Burry, the famous short-seller known for his role in “The Big Short” and his successful prediction of the 2008 housing crisis, also made noteworthy moves. In Q4, he significantly reduced his holdings in Chinese stocks, notably Alibaba and JD.
Instead, Burry shifted his focus to investments in Estée Lauder, Pinduoduo, and HCA Healthcare. It’s important to note that Burry’s trades are typically short-term tactical moves aimed at exploiting market anomalies rather than long-term investments.
Top 10 Holdings of Michael Burry as of Q4 2024
Bill Ackman: A Major Bet on Uber
Bill Ackman, known for his activist investing style, made bold moves in Q4. He increased his investments in BN, Nike, and Seaport, while reducing his holdings in Hilton and Chipotle—two investments that have yielded significant profits for him over the years.
Most notably, Ackman made a $2.3 billion bet on Uber. He highly regards the company, considering it “one of the best-managed and highest-quality businesses in the world,” and believes the stock is trading far below its intrinsic value.
Top 10 Holdings of Bill Ackman as of Q4 2024
While 13-F filings don’t provide a comprehensive guide to the strategies of famous investors, they offer valuable insights into how top investors are steering their portfolios. In today’s rapidly changing market, tracking and analyzing the investment trends of these financial luminaries can help investors identify potential opportunities and risks before they materialize.
– Vu Hao
– 09:22 21/02/2025
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