In this article, we discuss the 10 best Stan Druckenmiller stocks other billionaires are also piling into.

Billionaire Stanley Druckenmiller is overly skeptical about the stock market outlook, having become “really nervous” about the economy. He joins a growing list of high-profile investors that are sounding the alarm bells after one of the biggest rallies in recent history. US equities have been on a roll in 2023, with the S&P 500 gaining about 21% in the period.

Druckenmiller is best remembered for “breaking” the Bank of England in partnership with famed investor George Soros by betting against the British Pound in 1992. The duo ended up making over $1 billion on the trade. Nevertheless, his track record at Duquesne Capital, a hedge fund he helped found, has propelled him to stardom status on Wall Street.

Druckenmiller believes earnings will be flat next year, something that could take a significant toll on the market’s overall size. In addition, he is concerned over the forces influencing the economy and the overall stock market outlook.

Druckenmiller believes Janet Yellen has been behind the biggest blunder in the history of America’s treasury in failing to take advantage of the ultra-low interest rates era.

“When rates were practically zero, every Tom, Dick and Harry in the U.S. refinanced their mortgage… corporations extended [their debt],” he said. “Unfortunately, we had one entity that did not: the U.S. Treasury.”

Our Methodology

To compile the list, we first looked at Duquesne Capital 13F filings and selected the top stocks. We then ranked the stocks based on the number of billionaires that hold stakes in them.

Best Stan Druckenmiller Stocks Other Billionaires Are Also Piling Into 

10. News Corporation (NASDAQ:NWS)

Number of Billionaires Holding Stakes: 10

Duquesne Capital’s Equity Stakes: $95.73 Million

News Corporation (NASDAQ:NWS), a New York-based company, provides media and information services and produces and delivers compelling content and other consumer products and services.

News Corporation (NASDAQ:NWS) remains one of the best Stan Druckenmiller stocks other billionaires are piling into in the communication service sector. Duquesne Capital increased its stake in News Corporation (NASDAQ:NWS) by 6% in Q3 2023 to $95.73 million and is poised to benefit from the 0.87% yield on offer.

9. Lamb Weston Holdings, Inc. (NYSE:LW)

Number of Billionaires Holding Stakes: 12

Duquesne Capital’s Equity Stakes: $168.84 Million

Lamb Weston Holdings, Inc. (NYSE:LW) is one of the consumer defensive plays that billionaires are increasingly pilling into. Lamb Weston Holdings, Inc. (NYSE:LW) produces, distributes, and markets frozen potato products worldwide. It offers frozen potatoes, commercial ingredients, and appetizers under the Lamb Weston brand, as well as under various customer labels.

8. Teck Resources Ltd (USA) (NYSE:TCK)

Number of Billionaires Holding Stakes: 13

Duquesne Capital’s Equity Stakes: $176.93 Million

Teck Resources Ltd (USA) (NYSE:TCK) has to be one of the best Stan Druckenmiller stocks other billionaires are piling into for anyone eying exposure to the basic materials sector. Teck Resources Ltd (USA) (NYSE:TCK) explores for, acquires, develops, and produces natural resources. 

Teck Resources Ltd (USA) (NYSE:TCK) has gained about 5% year to date amid solid product demand amid the booming global economy. While trading with a P/E of 11, the stock offers a solid 1.06% yield for investors seeking to generate passive income. Duquesne Capital increased its stake in Teck Resources Ltd (USA) (NYSE:TCK) by 21% to $176.93 million in Q3 2023.

7. Coupang, Inc. (NYSE:CPNG)

Number of Billionaires Holding Stakes: 15

Duquesne Capital’s Equity Stakes: $355.37 Million

Coupang, Inc. (NYSE:CPNG) is an internet retail giant in Druckenmiller’s portfolio that billionaires are also piling into as a consumer cyclical investment play. Coupang, Inc. (NYSE:CPNG) operates e-commerce through its mobile applications and internet websites in South Korea. It offers products in various categories of apparel, beauty products, fresh food, electronics, and groceries.

Even though Coupang, Inc. (NYSE:CPNG) is up by 7.6%, underperforming the S&P 500, which is up by about 21%, about 15 billionaires hold stakes in the company. Druckenmiller’s hedge fund held stakes worth $355.37 million in Coupang, Inc. (NYSE:CPNG) as of the end of the third quarter.

6. T-Mobile Us Inc (NASDAQ:TMUS)

Number of Billionaires Holding Stakes: 17

Duquesne Capital’s Equity Stakes: $105.97 Million

Bellevue, Washington-based T-Mobile Us Inc (NASDAQ:TMUS) is one of the largest wireless carriers in the US that provides mobile communications services. T-Mobile US Inc (NASDAQ:TMUS) offers customers voice, messaging, and data services in postpaid, prepaid, wholesale, and other services. 

T-Mobile Us Inc (NASDAQ:TMUS) is one of the best Stan Druckenmiller stocks other billionaires are piling into for exposure in the communication services sector. About 17 billionaires hold stakes in the company; T-Mobile US Inc (NASDAQ:TMUS) has gained 13% year to date while offering a yield of 0.42%. Duquesne Capital trimmed its stake in the company by 36% in Q3 2023 to $105.97 million.

Here is what ClearBridge Dividend Strategy said about T-Mobile US, Inc. (NASDAQ:TMUS) in its Q3 2023 investor letter:

“During the quarter we initiated positions in two new names: T-Mobile US, Inc. (NASDAQ:TMUS) and Gilead Sciences. T-Mobile is the best-in-class player in the wireless space, delivering the strongest growth with the lowest cost structure and the best consumer proposition. T-Mobile’s strength is rooted in its advantaged competitive position. Its superior spectrum holdings enable it to provide better wireless service at meaningfully lower cost. T-Mobile’s annual capital expenditures run about $10 billion, on the order of half the amount its peers must spend. Due to its lower cost structure, T-Mobile can undercut its competitors on price while still generating compelling profitability and returns.

This combination — superior service at lower prices — has enabled T-Mobile to outgrow its competition. In the three years since completing its merger with Sprint, T-Mobile has grown its post-paid subscriber base by about 22%. Over the same period, AT&T’s has grown by about 14%, while Verizon’s by less than 5%.

Given the high fixed-cost nature of the wireless business, these steady increases in revenue growth have led to outsize increases in profits and free cash flow. Free cash flow in 2023 is expected to come in around $13.5 billion, up from less than $8 billion last year. In 2024 free cash flow is expected to grow by over 20% to approximately $17 billion — providing a 10% yield based on today’s stock price.

We have long admired T-Mobile, but until recently the stock did not pay a dividend. The company announced its inaugural dividend in September, and we bought the stock shortly thereafter. The initial yield is about 2%, and it is expected to grow about 10% per year.”

5. Eli Lilly And Co (NYSE:LLY)

Number of Billionaires Holding Stakes: 20
Duquesne Capital’s Equity Stakes: $243.92 Million

Indianapolis, Indiana, based Eli Lilly And Co (NYSE:LLY) is one of the healthcare investment plays that billionaires have been piling into.

In its Q3 2023 investor letter, Carillon Clarivest Capital Appreciation Fund commented on Eli Lilly And Co (NYSE:LLY):

“Eli Lilly and Company (NYSE:LLY), the drug manufacturer, announced the completion of previously disclosed acquisitions of Versanis Bio and Sigilon Therapeutics, as it continues to expand its pipeline for diabetes and weight-loss medications. Shares gained after its sales and earnings per share exceeded estimates and a competitor’s study on the beneficial results of these treatments reported positive data.”

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4. General Electric Co (NYSE:GE)

Number of Billionaires Holding Stakes: 21
Duquesne Capital’s Equity Stakes: $81.38 Million

Boston, Massachusetts-based General Electric Co (NYSE:GE) is an industrial investment play.

Here is what Longleaf Partners Fund said about General Electric Company (NYSE:GE) in its Q3 2023 investor letter:

“After a busy first half of the year, we initiated one new position in the quarter in a business we have successfully owned previously and were able to buy again at a discount within a new corporate structure. We opportunistically trimmed and added to several positions throughout the quarter, and we exited General Electric Company (NYSE:GE) and our small position in Hasbro after the share price ran away from us. GE was a multi-year portfolio holding for us that started out rocky but ultimately was a good illustration of owning a “quality” business that was temporarily viewed as “value” (aka, perceived as low quality) before ultimately being weighed properly by the market. CEO Larry Culp was a great partner, creating significant value for shareholders and closing the price-to-value gap. Under his leadership, GE materially improved its operations and is well under way on plans to simplify the business by separating it into three world-class companies. The market has finally caught up with reality versus perception and is pricing GE accordingly. Unfortunately, this means we no longer see a margin of safety for the business but will continue to watch GE and Culp closely and hope to have the opportunity to partner with him again.”

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3. NVIDIA Corp (NASDAQ:NVDA)

Number of Billionaires Holding Stakes: 29
Duquesne Capital’s Equity Stakes: $380.47 Million

NVIDIA Corp (NASDAQ:NVDA) remains the talk of Wall Street and one of the best Stan Druckenmiller stocks other billionaires are piling into amid the artificial intelligence frenzy. NVIDIA Corp (NASDAQ:NVDA) has become a trillion-dollar empire amid solid demand for graphic processing units to power data centers, personal computers, and mobile devices.

In its Q3 2023 investor letter, White Brook Capital shared its perspective on NVIDIA Corporation (NASDAQ: NVDA) as follows:

“The magnificent seven, that underpin the S&P 500 performance, which includes NVIDIA Corporation (NASDAQ:NVDA), now comprise almost 30% of the market capitalization of the S&P500. At least three of the seven stocks have heightened downside risk and suffer from already high penetration, weakening end markets, competitive risk, and lofty valuation. They have been remarkably resilient to increased interest rates and the potential for slowing growth. Small and midcap stocks, on the other hand, have been systemically penalized by fears of recession and continue to price that eventuality even as significantly better outcomes have become more probable. Today, it’s relatively easy to find attractive investments in this segment.”

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2. Alphabet Inc (NASDAQ:GOOG)

Number of Billionaires Holding Stakes: 34
Duquesne Capital’s Equity Stakes: $109.71 Million

Alphabet Inc (NASDAQ:GOOG) is one of the best Stan Druckenmiller stocks other billionaires are piling into in the communication service sector.

Alphabet Inc (NASDAQ:GOOG) has been one of the beneficiaries of the artificial intelligence frenzy, having already unveiled its AI-powered chatbot ChatGPT. Alphabet Inc (NASDAQ:GOOG) is one of the latest additions to Duquesne Capital’s portfolio, with the acquisition of stakes worth $109.71 million in Q3 2023.

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1. Microsoft Corporation (NASDAQ:MSFT)

Number of Billionaires Holding Stakes: 34
Duquesne Capital’s Equity Stakes: $321.20 Million

Microsoft Corporation (NASDAQ:MSFT) is the best Stan Druckenmiller stock other billionaires are piling into.

About 34 billionaires hold stakes in the company, which explains why Microsoft Corporation (NASDAQ:MSFT) is up by about 55% for the year. Duquesne Capital increased its stake in Microsoft Corporation (NASDAQ:MSFT) by 23% in the third quarter to $321.2 million.

In its Q3 2023 investor letter, White Brook Capital mentioned about Microsoft Corporation (NASDAQ:MSFT). Here is what it said:

“The magnificent seven, that underpin the S&P 500 performance, which includes Microsoft Corporation (NASDAQ:MSFT), now comprise almost 30% of the market capitalization of the S&P500. At least three of the seven stocks have heightened downside risk and suffer from already high penetration, weakening end markets, competitive risk, and lofty valuation. They have been remarkably resilient to increased interest rates and the potential for slowing growth. Small and midcap stocks, on the other hand, have been systemically penalized by fears of recession and continue to price that eventuality even as significantly better outcomes have become more probable. Today, it’s relatively easy to find attractive investments in this segment.”

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Disclosure: None. 10 Best Stan Druckenmiller Stocks Other Billionaires Are Also Piling Into is originally published on Insider Monkey.