In this article, we will take a look at the 10 Dow stocks billionaires are loading up on. To see more such companies, go directly to 5 Dow Stocks Billionaires Are Loading Up On.
In Tony Robbins’ Money – Master The Game, there’s a chapter titled Invest Like the .001%: The Billionaire’s Playbook. The chapter mentions the “secrets” behind wealth creation which Tony Robbins gathered after interviewing about 50 billionaires. These billionaires include Paul Tudor Jones, Warren Buffett, Carl Icahn, and many others. The chapter gives some really important lessons that give a sneak peek into billionaires’ thought process, their values and their peculiar nature that helped them stand out among millions of other people.
For example, it’s a common notion that billionaires are always aggressive in nature when it comes to investments and they never shy away from making “risky” bets. But the first takeaway Robbins mentions in this chapter is that billionaires are “obsessed” with making sure they don’t lose money. Robbins sums up the reason behind this obsession by pointing to the value of time. The reason why billionaires emphatically try not to lose money is that if you lose 50%, according to Robbins, it would take 100% to get back to where you started, and all of that effort would require something that you can never get back: time.
Another key takeaway from Tony Robbins’ interviews with billionaires is that billionaires are always looking to maximize their gains with as few risks as possible. This, again, is contrary to the common belief that billionaires are always looking to take big risks and they are willing to bet it all. Robbins says that the billionaires he interviewed are, without exception, looking for something that he calls “asymmetric risk/reward.” Here’s how the book sums up this lesson by quoting billionaire Paul Tudor Jones, whose total wealth today stands at $7.5 billion. Jones told Robbins that he doesn’t make an investment until he is sure of making $5 from every $1 invested.
“And that, he says, is a $100,000 MBA in a nutshell!,” the book adds.
Another excellent lesson Robbins got after interviewing famous billionaires was that the wealthy are good at making decisions based on the limited information they have. Robbins says that most talented people are not good investors since they don’t have the ability to make the most out of the limited information and by the time they get full information, the opportunity is no longer available.
Perhaps the biggest and most important lesson we could learn from the billionaires Tony Robbins interviewed is that just having the humility to learn from your mistakes and improve yourself could exponentially increase your chances of success.
“Contrary to what most people would expect, this group of achievers is never done! They’re never done learning, they’re never done earning, they’re never done growing, they’re never done giving! No matter how well they’ve done or how well they’ve continued to do, they never lose their hunger—the force that unleashes human genius. Most people would think, “If I had all this money, I would just stop. Why keep working?” Because each believes, somewhere in his or her soul, that “to whom much is given, much is expected.” Their labor is their love. Just like these money masters invest in different ways, they give back in different ways. They share their time, they share their money, they create foundations, they invest in others. Each of them has come to realize that true meaning in life comes from giving. They feel a responsibility to use their gifts to serve others. As Winston Churchill said, “We make a living by what we get. We make a life by what we give.” What unites them is the ultimate truth that life is about more than what you have. It’s really about what you have to give.”
The key investing themes followed by billionaires according to Tony Robbins are clearly visible when we analyze the portfolios of some billionaire portfolios. Amid rising inflation and Federal Reserve’s rate hikes, several family office funds of famous billionaires started cutting their exposure to stocks. An analysis from Bloomberg earlier this year showed that billionaire George Soros’s fund was upping its hold in investment-grade bonds and selling stocks. Billionaire Soros’ fund sold 130 stocks during the fourth quarter of 2022 and bought less than 30. The fund’s selling spree continues as its Q1’2023 portfolio shows a plethora of stocks in which the fund exited its positions.
The 2022 market crash didn’t spare even the billionaires and smart money managers, especially those who were piled into technology and growth stocks. Hedge funds led by famous billionaires and veteran investors, including D1 Capital’s Dan Sundheim, TCI’s Chris Hohn, Lone Pine Capital’s Stephen Mandel and Viking Global’s Andreas Halvorsen saw huge losses.
On the other hand, 15 hedge funds in the industry made a whopping $14 billion in the same period through personal investments and hedge fund fees, according to Bloomberg These winners include billionaire Ken Griffin of Citadel, billionaire Steve Cohen of Point72, billionaire Israel Englander of Millennium Management, billionaire DE Shaw, billionaire Paul Tudor Jones, among others.
When billionaires have to say something about the future trajectory and possibilities in the financial markets, the world listens. A stark warning about the future recently came from billionaire Cliff Asness of AQR Capital management, who, while talking to Bloomberg, highlighted the difference between the bond and stock markets when it comes to sentiment. The billionaire said that the bond market is indicating that the Federal Reserve could initiate aggressive rate cuts over the next one or two years. Asness thinks this could cause a recession.
Our Methodology
For this article, we first scanned The Dow Jones Industrial Average and calculated the number of billionaire investors for each of the 30 stocks of the index. We then selected 12 of these stocks with the highest number of billionaire investors as of the end of the first quarter of 2023. Data on the number of billionaire investors comes from Insider Monkey’s proprietary database of hedge funds and billionaires. Some notable names in the list include Microsoft Corporation (NASDAQ:MSFT), salesforce.com, inc. (NYSE:CRM) andWalmart Inc. (NYSE:WMT).
Industrial giant Honeywell International Inc. (NYSE:HON) ranks 12th in our list of the Dow stocks billionaires are loading up on. In April Honeywell International Inc. (NYSE:HON) posted Q1 results. Adjusted EPS in the quarter came in at $2.07, beating estimates by $0.15. Revenue in the quarter jumped 5.7% year over year to $8.86 billion, surpassing estimates by $360 million.
Insider Monkey’s latest data shows 16 billionaires were piled into Honeywell International Inc. (NYSE:HON) via their hedge funds. Some of the famous billionaires having stakes in this Honeywell International Inc. (NYSE:HON) stock are John Overdeck, Ken Griffin, DE Shaw, Mario Gabelli and Cliff Asness.
Another solid dividend stock on our list, McDonald's Corporation (NYSE:MCD) has increased its dividend consistently for 46 years. McDonald's Corporation (NYSE:MCD) has gained about 7.7% year to date through May 31.
Insider Monkey’s data shows that 16 billionaires were long McDonald's Corporation (NYSE:MCD) as of the end of the first quarter. The total value of these billionaires’ stakes was $2.4 billion. Some notable billionaires having stakes in the fast food giant include Ken Griffin, Ray Dalio, Steve Cohen, DE Shaw and Louis Bacon.
With about 67 years of consistent dividend increases, The Procter & Gamble Company (NYSE:PG) is one of the most popular dividend plays out there. The Procter & Gamble Company (NYSE:PG) is also loved by billionaires. 16 billionaires in Insider Monkey’s database had stakes in The Procter & Gamble Company (NYSE:PG) as of the end of the first quarter.
Morgan Stanley in April reiterated its Buy rating on The Procter & Gamble Company (NYSE:PG) following the company’s strong earnings. Morgan Stanley’s analyst Dara Mohsenian likes The Procter & Gamble Company (NYSE:PG)'s increased spending on marketing to drive sales and expects it can benefit from the expected easing U.S. market share comparisons and China recovery.
Johnson & Johnson (NYSE:JNJ) is one of the best defensive stocks to buy according to hedge funds tracked by Insider Monkey. A total of 86 hedge funds held stakes in Johnson & Johnson (NYSE:JNJ) as of the end of the first quarter of 2023. Johnson & Johnson (NYSE:JNJ) has upped its dividend consistently for over six decades now.
Insider Monkey’s database also shows that 17 billionaires had stakes in Johnson & Johnson (NYSE:JNJ) at the end of March. In addition to JNJ, billionaires also love Microsoft Corporation (NASDAQ:MSFT), salesforce.com, inc. (NYSE:CRM) andWalmart Inc. (NYSE:WMT).
Pharmaceutical company Merck & Co., Inc. (NYSE:MRK) is one of the top Dow stocks to buy according to billionaires. Phill Gross, Cliff Asness, D. E. Shaw, and Ray Dalio were some of the notable billionaires having stakes in Merck & Co., Inc. (NYSE:MRK) as of the end of the first quarter.
Overall, 75 hedge funds tracked by Insider Monkey had stakes in Merck & Co., Inc. (NYSE:MRK) as of the end of the first quarter.
Warren Buffett leads the group of billionaires having stakes in Apple Inc. (NASDAQ:AAPL) with a jaw-dropping $151 billion stake in the company, followed DE Shaw, Cliff Asness and Rajiv Jain. In total, 18 billionaires have stakes in Apple Inc. (NASDAQ:AAPL) as of the end of the first quarter of 2023.
Overall, 131 hedge funds tracked by Insider Monkey reported owning stakes in Apple Inc. (NASDAQ:AAPL) at the end of the March quarter.
Loop Capital recently cut Apple Inc. (NASDAQ:AAPL)’s rating citing declines in shipment forecast for iPhone.
Alger Spectra Fund made the following comment about Apple Inc. (NASDAQ:AAPL) in its Q1 2023 investor letter:
“Apple Inc. (NASDAQ:AAPL) is a leading technology provider in telecommunications, computing, and services. Apple’s iOS operating system is the company’s unique intellectual property and competitive strength. This software drives particularly tight engagement with consumers and enterprises, which is fostering the growing purchase of high margin services like music, apps, and Apple Pay. While iPhone sales were down year-over-year (YoY). services revenues grew 7% YoY which was slightly above analyst estimates. Company earnings were also better-than-anticipated due to lower input costs, such as memory chips and cost control initiatives. Aside from production disruptions, negative sentiment had also weighed on shares as investors questioned how an economic slowdown would affect consumer demand for Apple products in 2023. However, management projected an acceleration in earnings for the fiscal first quarter, where they noted that iPhone and services growth should remain strong, along with encouraging impacts around product mix, lower input costs, and continued cost controls.”
The financial crisis that started in 2022 amid rising inflation and rate hikes dramatically increased the demand for defensive dividend plays like The Coca-Cola Company (NYSE:KO). It seems billionaires also like to shore up their defenses when the economy is in turmoil. Insider Monkey’s data shows that 18 billionaire-led hedge funds had stakes in The Coca-Cola Company (NYSE:KO) as of the end of the first quarter. The most significant billionaire having stakes in The Coca-Cola Company (NYSE:KO) is Warren Buffett, who has a stake worth about $25 billion in the company as of the end of the first quarter.
Some other notable billionaires piled into The Coca-Cola Company (NYSE:KO) shares are Ray Dalio, Ken Griffin, Cliff Asness, DE Shaw and Steve Cohen.