In this article, we discuss 10 Blue Chip Stocks To Buy Now According To Billionaire Andreas Halvorsen.
Worth $6.6 Billion, Andreas Halvorsen is one of the most well-known investors in the world. He is known for his hedge fund, Viking Global. Andreas used to be an equity trader at Julian Robertson’s Tiger Management and started his own company in 1999.
Ever since starting the fund, Andreas has adopted a research-based, long-term investment strategy which has made him a billionaire. The fund uses fundamental analysis to pick investments which mainly range between private and public equities throughout many industries and geographies. It also looks at the business model of the companies they invest in, the industry trends (both cyclical and secular) and management team qualities. This approach allows Vikings to choose the best investments and capitalize on the most profitable investment opportunities.
Viking Global Investors, as per its last reported 13F filing for Q2 2022, held $21.8 billion in managed 13F securities and had a top 10 holdings concentration of 35.4%. Viking Global Investors’s largest holding is T-Mobile US, Inc. (NASDAQ:TMUS), with 9,170,393 shares held worth over $1.2 billion.
Viking Global Investors also invests a lot in blue chip stocks.
Blue chip stocks are companies that have a great reputation and are generally among the leaders in their sectors. They tend to be consistently profitable and also have solid future prospects. Some examples include JPMorgan Chase & Co., Microsoft Corporation (NASDAQ:MSFT), and Apple Inc. (NASDAQ:AAPL). Because they tend to have great fundamentals, blue chips tend to do well in the long run and many return substantial capital back to shareholders.
While many quality blue chips tend to do well in the long term, the markets have been very volatile in 2022. So far this year, there has been widespread uncertainty due to rising energy prices which has caused shocks across all sectors. Governments around the world have also been forced to raise interest rates to calm down inflation. If economic data continues to miss expectations, stocks could decline further.
Nevertheless, many quality blue chips could be opportunities for long term investors given the low valuations.
Andreas Halvorsen of Viking Global
Methodology
We took 10 stocks from Andreas Halvorsen’s Viking Global’s 13F portfolio at the end of Q2 2022 that we think have the right mixture of industry leadership, strong fundamentals, and growth potential. We then ranked them from #10 to #1 based on the stake value of Viking Global 13F portfolio in those stocks in the second quarter. We also provided the number of hedge funds in our database that held shares in the stock at the end of Q2 2022.
10 Blue Chip Stocks To Buy Now According To Billionaire Andreas Halvorsen
10. The Walt Disney Company (NYSE:DIS)
Viking Global Investor’s Stake Value: $164,398,000
Percentage of Viking Global Investor’s Portfolio: 0.75%
Number of hedge fund holders: 109
The Walt Disney Company (NYSE:DIS), also known as Disney, is one of the largest American multinational mass media and entertainment conglomerates with famous assets such as Marvel and Fox. During Q2 2022, The Walt Disney Company is a new addition to Viking Global’s portfolio as the fund purchased 1,741,500 shares of the company in the quarter. The fund’s total stake in the company amounted to roughly $164 million, which represented 0.75% of its 13F portfolio.
The Walt Disney Company reported strong result for Q3 2022. The company reported revenue of $21.5 billion, an increase of 26% YoY, while normalized EPS was $1.09, beating the market consensus estimate by $0.10. Management attributed the good performance in the quarter to strong growth from Disney parks as well as higher live-sports viewership. The Walt Disney Company also saw growth across all its segments which include direct-to-consumer, advertising, entertainment, and Disney plus.
At the end of Q2 2022, 109 hedge funds tracked by Insider Monkey owned stakes in The Walt Disney Company. Arrowstreet Capital was the stock’s leading stakeholder in Q2, owning The Walt Disney Company shares worth over $366 million. The fund’s position in the stock increased by 4% from Q1 2022.
Alongside Chubb Limited (NYSE:CB), Microsoft Corporation, and Amazon.com, Inc. (NASDAQ:AMZN), The Walt Disney Company is a blue chip holding in billionaire Andreas Halvorsen’s 13F portfolio at the end of Q2 2022.
9. Meta Platforms, Inc. (NASDAQ:META)
Viking Global Investor’s Stake Value: $462,121,000
Percentage of Viking Global Investor’s Portfolio: 2.11%
Number of hedge fund holders: 184
Previously known as Facebook, Meta Platforms, Inc. (NASDAQ:META) is the owner of Facebook, Instagram, and WhatsApp, three of the most widely used social media apps in the world, making it the biggest online social network operator in the world. During Q2 2022, Viking Global boosted its stake in the company by 137%. The fund’s total stake in the company amounted to roughly $462 million, which represented 2.11% of its 13F portfolio. As a result, Meta Platforms, Inc. ranks #9 on our list of 10 Blue Chip Stocks To Buy Now According To Billionaire Andreas Halvorsen.
Meta Platforms, Inc. reported a relatively weak performance in Q2 2022. The company reported revenue of $28.8 billion for the quarter, a decline of 0.88% YoY, and EPS of $2.46, which missed the consensus estimate by $0.09. The company is facing macro headwinds as the advertising business remains under pressure as businesses cut marketing budgets in a slowing economy.
At the end of Q2 2022, 184 hedge funds tracked by Insider Monkey owned stakes in Meta Platforms, Inc.. Fisher Asset Management was the stock’s leading stakeholder in Q2, owning Meta Platforms, Inc. shares worth over $1.8 billion.
8. Visa Inc. (NYSE:V)
Viking Global Investor’s Stake Value: $503,223,000
Percentage of Viking Global Investor’s Portfolio: 2.3%
Number of hedge fund holders: 166
Headquartered in San Francisco, Visa Inc. (NYSE:V) facilitates electronic payment systems all over the world through Visa debit cards, credit cards, and pre-paid cards. During Q2 2022, Viking Global decreased its stake in the company by 2%. The fund’s total stake in the company amounted to roughly $503 million, which represented 2.3% of its 13F portfolio.
Visa Inc. recently announced volume and transaction data for July and from August 1-28 in a regulatory filing. The company noted:
“August U.S. payments volume on a year-over-year basis was up 11%, flat with July, while Credit and Debit grew 17% and 7%, respectively, both up 1 point from July.”
At the end of Q2 2022, 166 hedge funds tracked by Insider Monkey owned stakes in Visa Inc.. TCI Fund Management was the stock’s leading stakeholder in Q2, owning Visa Inc. shares worth over $3.9 billion. The fund’s position in the stock remained unchanged from Q1 2022.
7. American International Group, Inc. (NYSE:AIG)
Viking Global Investor’s Stake Value: $516,859,000
Percentage of Viking Global Investor’s Portfolio: 2.36%
Number of hedge fund holders: 44
American International Group, Inc. (NYSE:AIG) is one of the world’s major insurance and financial services companies. It provides property, casualty, and life insurance through a network of subsidiaries. Its income is nearly equally split between commercial and consumer lines. American International Group, Inc. is a new addition to Viking Global’s portfolio as the fund purchased 10,108,715 shares of the company during Q2 2022. The fund’s total stake in the company amounted to roughly $516 million, which represented 2.36% of its 13F portfolio. As a result, American International Group, Inc. ranks 10 Blue Chip Stocks To Buy Now According To Billionaire Andreas Halvorsen.
As a blue chip, American International Group, Inc. has considerable scale and earnings power that could help it increase its dividend in the future. Currently, the stock has a forward dividend per share of $1.28, which represents only around a fifth of its profits.
At the end of Q2 2022, 44 hedge funds tracked by Insider Monkey owned stakes in American International Group, Inc.. Harris Associates was the stock’s leading stakeholder in Q2, owning American International Group, Inc. shares worth over $1.3 billion. The fund’s position in the stock decreased by 7% from Q1 2022.
6. Brookfield Asset Management Inc. (NYSE:BAM)
Viking Global Investor’s Stake Value: $539,474,000
Percentage of Viking Global Investor’s Portfolio: 2.46%
Number of hedge fund holders: 34
Brookfield Asset Management Inc. (NYSE:BAM) is sixth on our list. It is a Canadian company that has $725 billion in assets under management. It posted a revenue of $23.26 billion which converted to a profit of $590 million ($0.34 per share) this quarter. During Q2 2022, Viking Global decreased its stake in the company by 26%. The fund’s total stake in the company amounted to roughly $539 million, which represented 2.46% of its 13F portfolio.
Here is what SaltLight Capital Management specifically said about Brookfield Asset Management Inc. in its Q2 2022 investor letter:
“In our letter last quarter, we talked in detail about our investment in Brookfield Asset Management Inc. and a potential value-unlock transaction. BAM also operates a large holding company trading at a substantial discount. However, management has a better track record in unlocking value.
In our letter we wrote:
During the quarter, management announced that they’re considering splitting their ‘asset heavy’ investments and the ‘asset light’ asset management business. Nothing has been crystalized, but this could be an additional value unlock. In May, BAM confirmed that they are indeed going through with a transaction to spin off a portion of their ‘asset light’ asset management business by the end of the year…”
At the end of Q2 2022, 34 hedge funds tracked by Insider Monkey owned stakes in Brookfield Asset Management Inc.. Akre Capital Management was the stock’s leading stakeholder in Q2, owning Brookfield Asset Management Inc. shares worth over $591 million. The fund’s position in the stock increased by 2% from Q1 2022.
Like Brookfield Asset Management Inc., Chubb Limited, Microsoft Corporation, and Amazon.com, Inc. are blue chip stocks that are in billionaire Andreas Halvorsen’s 13F portfolio at the end of Q2 2022.
5. General Electric Company (NYSE:GE)
Viking Global Investor’s Stake Value: $557,132,000
Percentage of Viking Global Investor’s Portfolio: 2.54%
Number of hedge fund holders: 49
General Electric Company (NYSE:GE) is one of the oldest companies in America and is invested in many sectors such as aviation, power, healthcare, renewable energy and a lot more. Such diversification in investments and the company’s considerable scale makes it a blue chip company. During Q2 2022, Viking Global decreased its stake in General Electric Company by 32%. The fund’s total stake in the company amounted to roughly $557 million, which represented 2.54% of its 13F portfolio.
In terms of analysts, Nicole DeBlase at Deutsche Bank reduced the firm’s price target on General Electric Company to $88 from $90 while maintaining a buy recommendation on the stock. The analyst is “a little surprised” that General Electric Company shares rose in response to the Q2 earnings report, as she expected the market to focus on the 2022/2023 free cash flow guidance-down rather than the better-than-expected Q2 performance.
At the end of Q2 2022, 49 hedge funds tracked by Insider Monkey owned stakes in General Electric Company. Eagle Capital Management was the stock’s leading stakeholder in Q2, owning General Electric Company shares worth over $834 million. The fund’s position in the stock decreased by 2% from Q1 2022.
4. Mastercard Incorporated (NYSE:MA)
Viking Global Investor’s Stake Value: $726,331,000
Percentage of Viking Global Investor’s Portfolio: 3.32%
Number of hedge fund holders: 137
Mastercard Incorporated (NYSE:MA) processed about $6 trillion in purchasing transactions in 2021, making it the world’s second-largest payment processor. Mastercard is accepted in over 200 countries and processes transactions in over 150 currencies. During Q2 2022, Viking Global boosted its stake in the company by 29%. The fund’s total stake in the company amounted to roughly $726 million, which represented 3.32% of its 13F portfolio.
In August, James Fotheringham, an analyst at BMO Capital raised the firm’s price target on Mastercard Incorporated to $422 from $402 and maintains an outperform rating on the stock. According to the analyst, the company’s Q2 earnings benefited from higher exposure to cross-border travel recovery and credit while consumer spending remained strong.
At the end of Q2 2022, 137 hedge funds tracked by Insider Monkey owned stakes in Mastercard Incorporated. Akre Capital Management was the stock’s leading stakeholder in Q2, owning Mastercard Incorporated shares worth over $1.8 billion. The fund’s position in the stock increased by 1% from Q1 2022.
3. Chubb Limited (NYSE:CB)
Viking Global Investor’s Stake Value: $741,937,000
Percentage of Viking Global Investor’s Portfolio: 3.39%
Number of hedge fund holders: 35
Third on our list of 5 and 10 Blue Chip Stocks To Buy Now According To Billionaire Andreas Halvorsen is insurer Chubb Limited. With operations in 54 countries and territories, Chubb Limited is the world’s largest publicly traded P&C insurance company and a blue chip in the financial sector. During Q2 2022, Viking Global increased its stake in the company by 18% to roughly $741 million, which represented 3.39% of its 13F portfolio.
For Q2 2022, Chubb Limited reported revenue of $9.37 billion, a decrease of 8.96% YoY, and a normalized EPS of $4.20, beating the market consensus estimate by $0.57.
Chairman and CEO of Chubb Limited Evan G. Greenberg commented:
“We had an outstanding quarter that reflects the strong momentum in our company: record operating earnings, underwriting and investment results, and double-digit premium revenue growth in constant dollars. Core operating income per share was $4.20, up 16%; P&C underwriting income topped $1.4 billion, up over 21%, with a combined ratio of 84%; and adjusted net investment income was $950 million – all were records.”
At the end of Q2 2022, 35 hedge funds tracked by Insider Monkey owned stakes in Chubb Limited. Viking Global was the stock’s leading stakeholder in Q2.
2. Microsoft Corporation (NASDAQ:MSFT)
Viking Global Investor’s Stake Value: $761,033,000
Percentage of Viking Global Investor’s Portfolio: 3.48%
Number of hedge fund holders: 258
Founded in 1975, Microsoft Corporation is an American multinational technology corporation that operates within the information technology sector. Microsoft primarily produces and sells personal computing devices, software, cloud system, and services. The company has also expanded into, among many other things, mixed reality, what with its recent investments in Metaverse. During Q2 2022, Viking Global decreased its stake in the company by 11%. The fund’s total stake in the company amounted to roughly $761 million, which represented 3.48% of its 13F portfolio.
Even in this poor macro-economic environment, Microsoft Corporation managed to surpass $25 billion in quarterly revenue for the very first time in its fourth quarter’s report. The company performed well across all segments, including gaming, LinkedIn, Cloud, security and its most famous product, Windows. According to the management, no company is better positioned than Microsoft Corporation to help organizations in all industries to help overcome digital challenges.
At the end of Q2 2022, 258 hedge funds tracked by Insider Monkey owned stakes in Microsoft Corporation. Fisher Asset Management was the stock’s leading stakeholder in Q2, owning Microsoft Corporation shares worth over $7.3 billion. The fund’s position in the stock increased by 3% from Q1 2022.
1. Amazon.com, Inc. (NASDAQ:AMZN)
Viking Global Investor’s Stake Value: $860,822,000
Percentage of Viking Global Investor’s Portfolio: 3.93%
Number of hedge fund holders: 252
Amazon.com, Inc. is a leading online retailer and one of the highest-grossing e-commerce aggregators, with $386 billion in net sales and approximately $578 billion in estimated physical/digital online gross merchandise volume in 2021. During Q2 2022, Viking Global boosted its stake in the company by 1817%. The fund’s total stake in the company amounted to roughly $860 million, which represented 3.93% of its 13F portfolio.
Oakmark Funds, an investment management firm, mentioned Amazon.com, Inc. in its second quarter of 2022 investor letter. Here’s what they said:
“Amazon is the leading e-commerce and cloud-computing provider in the world. Two-thirds of U.S. households are Amazon Prime subscribers, and over half of all online product searches now start on Amazon. We believe the company’s strong customer loyalty and massive infrastructure are significant barriers to entry in a growing e-commerce market. Separately, Amazon Web Services (“AWS”) controls nearly half of the market in cloud computing. We believe AWS has become utility-like in nature and scale, and we expect healthy growth moving forward as I.T workloads continue moving to the cloud. More recently, concerns about rising investment spending have weighed on the stock as they have in times past-providing us another opportunity to purchase shares at a very attractive price. At our purchase price and valuing AWS like its peers, an investor isn’t paying much of anything for the immensely valuable e-commerce franchise.”
At the end of Q2 2022, 252 hedge funds tracked by Insider Monkey owned stakes in Amazon.com, Inc.. Fisher Asset Management was the stock’s leading stakeholder in Q2, owning Amazon.com, Inc. shares worth over $5.1 billion. The fund’s position in the stock increased by 1959% from Q1 2022.
You can also take a look at Harvard University’s Latest Portfolio: 10 Best Biotech Stock Picks and 10 Dividend Stocks to Buy According to Billionaire Stanley Druckenmiller’s Duquesne Capital.
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This article is originally published at Insider Monkey.
