10 Best Stocks To Invest In Right Now According To Tech Billionaire
In this article, we're going to review the 10 best stocks to invest in, according to tech billionaire Chase Coleman. Click here to go ahead and see the 5 Best Stocks To Invest In Right Now.
Tiger Global Management's founder, Chase Coleman, of investing in technology and internet stocks, has helped one of Julian Robertson's "Tiger Cubs" protégés outperform broader market trends. This is evident from the significant increase in the value of the Coleman fund portfolio from $ 25.79 billion in the June quarter to $ 35.53 billion in late September. The fund grew $ 9 billion in value for the June quarter. Chase Coleman’s net worth is now roughly $ 7 billion, nearly double the net worth of his mentor Julian Robertson.
Tech stocks have been on an unstoppable growth path since the dot-com bubble burst. Tech stocks have been glowing even stronger since the beginning of this year, as demand for internet stocks and tech companies has risen on virus-related concerns.
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The latest records show that Coleman plans to expand its investments in companies that benefit from changing consumer trends. With the exception of a small stake sale in Alibaba Holdings (BABA), the billionaire hedge fund has not sold any stake in its top 17 stock holdings. In fact, he added his existing positions in several top performing internet and tech stocks.
The hedge fund returned 33% in 2019 and returned 33.5% this year through the end of August, with the expectation that Coleman Tiger Global Management's investment strategies would help improve returns for the remainder of this year. This is because all of the top stocks in the US saw massive gains in the last quarter. The ten largest stocks account for 56% of the total portfolio.
In addition to investing in top tech and internet companies, Coleman and his team enjoy investing in startups, private companies, and IPOs. Coleman invested more than $ 313 million in a tech IPO Snowflake (NYSE: SNOW) last quarter and built on its position in Chinese e-commerce platform Pinduoduo (NASDAQ: PDD). CrowdStrike Holdings Inc. (NASDAQ: CRWD) and GSX Techedu Inc. (NYSE: GSX) are among the startups that have won the trust of one of the most successful Tiger Cubs.
10 best stocks to invest in right now
Chase Coleman from Tiger Global
In addition, the fund has significantly increased its stake in technology companies that benefit from pandemic-induced changes in market trends. He doubled his stake in ServiceNow Inc. (NYSE: NOW) and increased the position of Zoom Video (NASDAQ: ZM) by 50% in the September quarter. Meanwhile, the billionaire hedge fund has sold small stakes in companies like PayPal (NASDAQ: PYPL) and Salesforce (NYSE: CRM) to take advantage of profits.
If we were forced to invest in stocks in a single industry, we would no doubt have chosen technology stocks. Tech stocks were a separate industry before the last decade, but now tech is everywhere. Industrial products such as thermostats, light bulbs, batteries, automobiles and trucks are becoming technological products. Tech companies will disrupt everything from construction, banking, insurance, healthcare, education, and various other industries in the years to come. You want to be on the side of the troubled companies and avoid investing in troubled companies that appear to be "value investments". Because of this, the top 10 stocks you should invest in right now should likely come from the tech industry. Chase Coleman's track record of around 20% annual return after fees shows that he can pick the best technology stocks to buy.
While Chase Coleman's reputation remains intact, the same cannot be said for the entire hedge fund industry, as his reputation has been tarnished over the past decade when his hedged returns failed to keep up with the market's unsecured returns on indices . On the flip side, Insider Monkeys Research was able to pre-identify a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 78 percentage points since March 2017 (see details here). We were also able to pre-identify a select group of hedge fund holdings that were significantly underperforming the market. We have been tracking and sharing the list of these stocks since February 2017, and they have lost 13% by November 16. For this reason, we believe hedge fund sentiment is an extremely useful indicator to look out for. You can subscribe to our free newsletter on our homepage to receive our articles in your inbox.
Let's start by reviewing the 10 best stocks to invest in, according to tech billionaire Chase Coleman.
10. CrowdStrike Holdings, Inc. (NASDAQ: CRWD)
The cybersecurity platform (NASDAQ: CRWD) is one of the best growth stocks to invest in, according to the tech billionaire. Tiger Global Management first opened a position in CrowdStroke in the first quarter of 2019 and increased its stake in the cybersecurity platform by 49% in September of this year.
The hedge fund has benefited greatly from its stake in CrowdStrike Holdings. CrowdStrike's shares rose nearly 270% over the past twelve months, with further gains expected. The company posted 86% year-over-year revenue growth for the most recent quarter, while subscription revenue increased 87% to $ 213.5 million, adding 1,186 net new customers.
"We continued to leverage operational leverage and drive unit profitability to record levels. Due to our strong execution in the quarter, we reduced our GAAP operating loss year-over-year, achieved non-GAAP operating profitability for the third straight quarter, and a positive operating profit Result achieved and free cash flow for the fifth time in a row, "says CFO Burt Podbere.
9. Pinduoduo Inc (PDD)
PDD ranks 9th on our list of the 10 best stocks to invest in right now. Chinese social e-commerce giant Pinduoduo (NASDAQ: PDD) has also won the trust of one of the best baby tigers in recent quarters. The tech billionaire opened a position on the Chinese online platform for the first time in the third quarter of 2018. Coleman increased its stake in the online platform by 149% in September this year.
Several other hedge funds, including Tao Value, have also shown confidence in the Chinese social e-commerce giant. Tao Value said: “PDD has been a relatively new position since last year (a detailed thesis can be found in our letter for the third quarter of 2018: [Link] 1). PDD achieved a return of + 56% in the last quarter, supported by the very positive profit surprise. In its announced second quarter 18 results, PDD saw revenue growth of + 169% YoY, GMV growth of + 171% YoY, active shopper growth of 41% YoY, and active buyer spend + 98% YoY all of which clearly exceeded the estimate of the street. It came as no surprise to us, however, as our assessment indicated that PDD most likely had a chance to compete with the incumbents. Now that the question of "if" PDD can compete with "how" it can become a more intense battle. But given his superior mission and vision, we can be patient as we explore other adjacent playing fields. I am particularly fascinated by the development of your brand management (C2M) and logistics initiatives. "
8. Sea Limited (SE)
SE ranks 8th on our list of the 10 best stocks to invest in now. Sea Limited (NYSE: SE) e-commerce, gaming, and fintech stock is the eighth largest stock in the Chase Coleman portfolio. The company made no changes to its stake in the third quarter. Tiger Global Management currently holds 8.3 million shares in Sea Limited valued at $ 1.2 billion, representing 3.79% of the total portfolio.
Shares in e-commerce, gaming and fintech platforms increased 400% this year, driven by robust revenue growth. GAAP revenue of $ 1.2 billion last quarter increased 98.7% from the same period last year. The company expects digital entertainment bookings to be in the range of $ 3.1 billion in FY 2020, up 75.4% from 2019. The Tao value is cautiously optimistic at Sea Limited:
“Sea Ltd (Ticker: SE) Based on the reported Q2 figures, Sea has done consistently well and exceeded the already high expectations in all three business areas. It is developing into a super app for the ASEAN region and leveraging its leading positions in all three megatrends: gaming, e-commerce and fintech, basically a combination of Alibaba and Tencent from ASEAN. Given the strong price reaction, I chose to trim slightly to control position size. "
7. Alibaba Group Holding (BABA)
BABA ranks 7th on our list of the 10 best stocks to invest in right now. The Chinese e-commerce platform Alibaba Group Holding (NYSE: BABA) has been a permanent member of the Coleman portfolio over the years. The hedge fund holds 4.4 million BABA shares valued at $ 1.31 billion, representing 3.88% of the total portfolio. The tech billionaire benefited from his investments in China's largest e-commerce platform as Alibaba shares rose more than 200% in the past five years.
The company posted revenue growth of 30% for the most recent quarter, while earnings per share of $ 2.68 beat consensus estimate by $ 2.65 per share. According to the company, mobile MAUs in China's retail markets hit 881 million in the most recent quarter, up 7 million from June 2020.
In a letter to investors, the Baron Opportunity Fund welcomed Alibaba's future fundamentals. The Baron Opportunity Fund said, “Alibaba Group Holdings Limited is the largest retail and e-commerce company in China. Alibaba operates the Taobao and Tmall shopping platforms and owns 33% of the soon-to-be-listed Ant Financial, which operates Alipay, China's largest third-party online payment provider. Alibaba's shares rose on a continued rebound in core trade, benefiting from an improved purchase frequency and improved spend per order. We believe that Alibaba's core business remains highly profitable, complemented by rapid growth in the cloud business and the inflection in the Cainiao Logistics and New Retail segments. "
6. Carvana Co (CVNA)
The online used car buying and selling platform Ev-Commerce Carvana Co (NYSE: CVNA) is one of the best performers of 2020. The e-commerce platform is the sixth largest stock of Tiger Global and accounts for 3.95% of total sales Portfolio. The company currently owns 6 million shares of Carvana, valued at $ 1.34 billion.
In a letter to shareholders, Steel City Capital expressed its confidence in Carvana. The company said, “I believe that market expectations for Carvana (CVNA) are not in line with what the company is expected to deliver, particularly with respect to the next few quarters. One of the company's key value propositions - buying a car from the comfort of your home with no direct human interaction - is tailored for a world of social distancing. After bottoming out at $ 22.16, stocks are up 6.4x to their current level of $ 141. The market expects more from CVNA today than at the beginning of the year.
"What I don't think investors appreciate is that the company is actually at a momentary disadvantage that should unfold in its third quarter results. In particular, CVNA made a strategic decision to stop buying used vehicles in March and April withdraw to do so. " Maintain liquidity. While the company has since resumed its purchases, the inventory listed on the company's website remains well below the levels reported at the beginning of the year. This, in turn, will weigh on future retail sales volume. "
Click here to read on and see the 5 best stocks you should invest in right now.
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Disclosure: No position. According to tech billionaire, the top 10 stocks to invest in right now are originally published on Insider Monkey.
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