It’s 13F season. Many super investors Many so-called “Smart Money” investors have published their latest quarterly numbers. And that gives us private investors an opportunity to look into their latest trades. In today’s article, we will look at the 10 most held and the 10 most bought stocks by smart money in the last quarter. And at the very end of this post, I will also show you the most sold stocks – which will be a big surprise, I promise.
So first of all, how do I know what stocks smart money is buying? In the US, investment funds with at least $100m in assets under management have to disclose their equity holdings and trades every quarter. And these have to be filed 45 days after each quarter. We actually got this data from dataroma.com which collects investment information of 78 of the biggest investment companies globally.
Some of these are Bill Ackman’s Pershing Square Capital Management fund, Charlie Munger, Michael Burry’s Scion Asset Management fund, and Berkshire, the investment company of Warren Buffett.
Top 10 Most Held Stocks
Right, let’s look at the 10 most held stocks by smart money.
On number 10, we have Bank of America. It’s the second-largest bank in the US by total assets. The stock is currently held by 15 super investors. Charlie Munger, for example, loves this stock. It’s by far his largest position, making up over 44% of his portfolio. The same goes for Berkshire, where it’s the second-largest position right after Apple.
In position number 9, we have UnitedHealth Group. The company offers health care products and insurance services. UnitedHealth is the world’s eleventh-largest company by revenue and the second-largest healthcare company right behind CVS Health by revenue. And the stock is currently held by 16 investors. It seems like a surprise appearance, but it’s also currently in the top 10 of the largest companies in the S&P 500. So not so surprising after all.
On number 8: Berkshire Hathaway. Berkshire is a mega holding company that owns over 40 publicly traded stocks and a mega portfolio of over 60 private companies from the insurance, railroad, and energy sector. 17 investors currently own this stock, including Bill Gates. By the way, if you want to see my dedicated video on the Berkshire portfolio, then check out the video in the link.
Coming in at number 7: Wells Fargo, the third-largest bank in the US by total assets. 18 investors currently own this stock. Another banking stock that Charlie Munger loves. This one is his second-largest position in his portfolio right after Bank of America.
Next up in position number 6 is Mastercard, which is one of the largest payment processors in the world. With over $6tn, it’s currently number 2 in terms of transactional volume, right behind Visa. The stock is currently held by 18 investors.
In position number 5, we have Mastercard-rival Visa. In terms of payment volume, they are number 1 globally ahead of Mastercard and American Express. 22 investors currently own this stock. And yes, another financial stock.
On number 4, we have Amazon. It’s best known for its e-commerce business. But it also produces its own hardware products like Echo and Alexa devices, Fire TV, and the Kindle. It also offers a video streaming service through Amazon Prime Video. On top of that, Amazon is the biggest player in cloud computing globally through its AWS arm. The stock is currently held by 23 investors. And that’s not surprising at all!
On position number 3, we have Microsoft. It’s the third most valuable company globally right behind Saudi Aramco and Apple. It’s best known for its software products like the operating system Microsoft Windows, the Microsoft Office suite, web services like bing, LinkedIn, or MSN, and hardware products like the Surface line or the Xbox and their cloud service Azure.
Azure has become the second-largest player in the cloud infrastructure space globally right after AWS. The stock is currently held by 25 investors, including Bill Gates’ trust of course.
On number 2, we have Alphabet. Alphabet is Google’s parent company and owns services like Google Ads, Google Cloud, Youtube, Android, and Other Bets which is their venture arm. The stock is currently held by 30 investors. Digital advertising still makes up the majority of Google’s revenue. But the company is heavily investing in other areas like cloud computing and consumer hardware. And that’s where the future growth of the company could come from.
And finally, in position number 1, we have… drum roll, please… Who could it be? Is it Apple or Tesla? No, it’s Meta! Meta is the world’s largest online social network, with 2.5 billion monthly active users. If you look at the 7 largest social networks globally, you will find 4 Meta companies in it: Facebook, WhatsApp, Instagram, and Facebook Messenger.
On top of that, Meta owns VR headset company Oculus which was acquired back in 2014. 31 investors currently own this stock. And there are many good reasons for that. But the stock has come under pressure because of weaker revenue and profit growth. One of the reasons was Apple’s App Tracking Transparency feature that blocks Meta from sending targeted ads to Apple users.
On top of that, Meta also showed the first quarterly decline in daily active users ever. But one thing is clear: Meta has become dirt cheap, trading at 50% below its 2021 highs. So no surprise here at all that many super investors got into this stock. If we look at the top 10 most held stocks by super investors, one thing becomes very apparent: It’s incredibly US-focused. It’s very Financials-heavy with 4 companies in the top 10. And a big surprise: Apple, the most valuable US company right now, is not in the Top 10.
Top 10 Most Bought Stocks
Right, so we looked at the most held stocks. But even more interesting: Which stocks did smart money buy in the last quarter? Let’s have a look!
On number 10, we have credit rating agency S&P Global which is surprising. It was bought by 6 super investors last quarter. The average stock price for S&P Global in Q1 was $407. From there, the stock is down 17% today. S&P Global is one of only three major credit rating agencies, next to Moody’s and Fitch. Between those three, Moody’s and S&P control over 80% of the international market share, so very strong moat here.
In position number 9, we have the US bank Citigroup. It was bought by 6 super investors in the last quarter. Their average stock price in Q1 was $62. Since then, it’s down another 17%.
On number 8, we have the online payments platform PayPal. It was bought by 6 investors in the last quarter. Their average stock price in Q1 was $133. Now it’s down 35%. And that’s not all: The share price has been falling for almost a year now from its peak of over $300 and that’s what makes PayPal attractive right now.
Coming in at number 7, you will find Netflix. Another tech stock that was sold off recently. But 6 super investors got into the stock last quarter. There was a lot of negative news surrounding Netflix recently. In their latest earnings call, they reported a user decline – the first one in a decade. More and more companies like Amazon, Disney, and Apple are jumping onto the streaming wagon, making it very difficult for Netflix to grow as fast as it used to.
Their average stock price in Q1 was $419. Since then, it’s down a whopping 52%. And even worse: From its 2021 peak, the stock is down 70%. At this price point, the stock is getting more and more attractive to investors.
Next up on position number 6 is S&P-rival Moody’s. 7 investors bought this stock last quarter. Their average stock price in Q1 was $336. Since then, the stock is down 15%.
In position number 5, we have Visa. It was bought by 7 investors in the last quarter. Their average stock price in Q1 was $216. Since then, it’s only down 2%.
On number 4, we have Amazon. It was bought by 8 investors in the last quarter. Their average stock price in Q1 was $154 – after the stock split. Since then, the stock is down 21% which is very unusual for Amazon. It’s one of those stocks where investors keep buying any dip. And that’s exactly what you can see here.
In position number 3, we have Alphabet. 10 investors bought this stock last quarter. Their average stock price in Q1 was $2,715. Since then, it’s down 16%.
On number 2, we have Microsoft. It was bought by 12 super investors in the last quarter. Their average stock price in Q1 was $301. Since then, the stock is down 10%.
And finally, in position number 1, the most bought stock in the last quarter: Again, it’s Meta! It was bought by 19 super investors in the last quarter. Their average stock price in Q1 was $250. Since then, it’s down 24%. Its PE ratio actually dropped to 13 in Q1 which is disgustingly low for a growth stock and a cash flow beast like Meta.
If we look at the top 10 most bought stocks, there are a few surprises: All stocks are currently down compared to their Q1 price. Also, you won’t find Apple, Tesla, Nvidia, or Berkshire. But hey question to you: Is there any other stock you would have expected in the top 10 most bought stocks? As always: Let me know in the comment section below.
Most Sold Stock
Alright, as promised at the beginning of this article, let’s also have a look at the most sold stock by smart money in the last quarter. Have a guess, who could it be? It’s actually Alphabet. It was sold by 14 investors. One reason for that might be that the stock had a crazy rally in the last few years, being close to all-time highs in Q1 this year. So it’s a good time for investors to lock in the profits and move on to the next investments.
But I wouldn’t put too much emphasis on this. Stocks that are as big as Alphabet are also traded more frequently. And that goes both ways. Yes, it’s been sold by 14 investors. But at the same time, it’s still owned by 30 investors.
There you have it: The 10 most held and bought stocks. But what do you actually think? What was the most surprising stock for you in the top 10? Which stocks have you bought or sold last quarter? As always – let me know in the comment section below.
DISCLAIMER: This article is for educational purposes only and merely cites my own personal opinion. In order to make the best financial decision that suits your own needs, you must conduct your own thorough research and seek the advice of a licensed financial advisor if necessary.