This Billionaire Investor Is Betting Big on Five Tech Stocks; Should You Follow Him?

#3 Visa Inc (NYSE:V)

Shares held (as of September 30): 14.63 million
Total Value (as of September 30): $1.02 billion
Percent of Portfolio (as of September 30): 2.12%

At a forward P/E of 25.7, Visa Inc (NYSE:V) isn’t cheap, but shares have done well with the stock up 18.19% year-to-date. The financial payments company is the leader in a duopoly, giving the company high margins and investors great visibility on future cash flows. Analysts expect good things from the company in the next five years, with an average next 5-year EPS growth rate of 18.1%, as the U.S. economy chugs ahead. The invention of the blockchain is a threat in the long run, but for now, it’s just hypothetical.  Lansdowne Partners owned 13 million shares at the end of June.

#2 Apple Inc. (NASDAQ:AAPL)

Shares held (as of September 30): 11.12 million
Total Value (as of September 30): $1.23 billion
Percent of Portfolio (as of September 30): 2.56%

The market doesn’t like one-product companies because the profit from a single product is not as sustainable as the profit from a broad portfolio of products. While there is no question that the majority of Apple Inc. (NASDAQ:AAPL)’s profits come from the iPhone, the data show that iPhone profits are sustainable. Apple’s EPS has been steadily growing since Steve Jobs launched the iPhone in 2007. Apple’s strong ecosystem and luxury brand keep customers coming back each time. The smartphone may be more or less commoditized, but Apple’s profits haven’t. Meanwhile, virtual reality, smart cars, and artificial intelligence will offer more growth and diversification opportunities in the future. Carl Icahn‘s Icahn Capital LP, who thinks Apple should trade for $240 per share, owned 52.76 million shares at the end of June.