10 Stocks to Invest in Today According to Billionaire Kerr Neilson

In this article, we examined billionaire Kerr Neilson’s portfolio management strategy and approach to investing in stocks. We also reviewed 10 stocks to invest in today according to billionaire Kerr Neilson’s portfolio. You can skip our detailed discussion about Kerr Neilson’s investment philosophy and portfolio management strategies and jump directly to 5 Stocks to Invest in Today According to Billionaire Kerr Neilson.

Australian billionaire Kerr Neilson is often compared to Warren Buffett due to his value-based contrarian stock-picking strategies. The 71-year-old billionaire, who bought his first stock when he was 13 years old, is now ranked among Australia’s 50 richest people. He earned a bachelor’s degree in commerce from the University of Cape Town and then moved to Australia to work for Bankers Trust Australia Limited. He founded Platinum Asset Management in 1994, with financial backing from legendary investor George Soros. 

Platinum Asset Management has only experienced a few underperforming years since its inception. Its flagship fund has generated a 12.4% return since inception through September 2011, compared to 3.7% for the benchmark world index. As of the end of September, Kerr Neilson’s investment firm held $3.55 billion in 13F securities and around $17 billion in assets under management.  

Investments made by the firm are not limited to a single industry. Platinum Asset Management currently invests across several sectors, with its major holdings concentrated in information technology, industrials, consumer discretionary, and materials sectors. 

Kerr Neilson’s top 10 holdings represent 58.31% of the entire 13F portfolio as of September. Booking Holdings Inc. (NASDAQ:BKNG), General Electric Company (NYSE:GE), Gilead Sciences, Inc. (NASDAQ:GILD), Barrick Gold Corporation (NYSE:GOLD), and The Mosaic Company (NYSE:MOS) were among the 10 largest stock holdings of billionaire Kerr Neilson’s portfolio.

ZTO Express (Cayman) Inc. (NYSE:ZTO), Platinum Asset Management’s largest stock holding, represents 13.69% of its portfolio and has an investment value of about $486 million. The Shanghai-based ZTO Express (Cayman) Inc. is considered as a growth stock with 21% average revenue growth over the last three years. The firm also lifted its stake in Trip.com Group Limited (NASDAQ:TCOM) by 35% during the third quarter to make it the second-largest stock holding of the portfolio.  

Our Methodology

This analysis is conducted using Platinum Asset Management’s 13F portfolio as of September 2021. The following is a list of 10 stocks to invest in today according to billionaire Kerr Neilson. 

Kerr Neilson of Platinum Asset Management

10 Stocks to Invest in Today According to Billionaire Kerr Neilson 

10. Booking Holdings Inc. (NASDAQ:BKNG)

Platinum Asset Management’s Stake Value: $88.6 million

Percentage of Platinum Asset Management’s 13F Portfolio: 2.49%

Number of Hedge Fund Holders: 99

Booking Holdings Inc. (NASDAQ:BKNG) has been a member of the billionaire Kerr Neilson’s portfolio since the beginning of 2019. The stock price rally of Booking Holdings Inc. (NASDAQ:BKNG) contributed positively to Platinum Asset Management’s returns in the past two years. Like ZTO Express (Cayman) Inc. (NYSE:ZTO) and Trip.com Group Limited (NASDAQ:TCOM), the stock price of Booking Holdings Inc. (NASDAQ:BKNG) gained a lot of investors attention since early 2020. 

Despite recent gains, market analysts are expecting more upside ahead. RBC Capital Markets set an outperform rating for Booking Holdings Inc. (NASDAQ:BKNG) stock with a price target of $2700. The share price of Booking Holdings Inc. (NASDAQ:BKNG) is currently trading around $2400. 

In the third quarter investor letter, L1 Capital, an investment management firm, mentioned a few stocks including Booking Holdings Inc. (NASDAQ:BKNG). Here is what  L1 Capital stated about Booking Holdings Inc. (NASDAQ:BKNG):

“We reinvested the proceeds from our successful investment in Thermo Fisher in Booking Holdings (Booking). Booking was an investment in the Fund at Inception and was featured in our inaugural June 2019 Quarterly Report. The company owns the world’s largest online travel agent (OTA), Booking.com. To say the past 2.5 years has been volatile for Booking Holdings Inc. (NASDAQ:BKNG) is a major understatement. Booking’s management has had to address the COVID-19-driven collapse in demand for travel accommodation, as well as to manage volatile demand as the world gradually recovers, interrupted by second and third waves of COVID-19 as variants arise.

Throughout these volatile market conditions, Booking Holdings Inc. (NASDAQ:BKNG)’s management has executed against a consistent strategy, investing in its platform and network of accommodation providers, and expanded its associated services while improving efficiencies. We believe Booking will come out of the COVID-19 environment a stronger business, with less competition and consumers more predisposed to booking their travel accommodation online. Travel is recovering strongly as vaccination rates increase and COVID-19 related restrictions are lifted, and we expect Booking’s earnings and cashflow to also recover strongly over the coming years.”

9. General Electric Company (NYSE:GE)

Platinum Asset Management’s Stake Value: $96.8 million

Percentage of Platinum Asset Management’s 13F Portfolio: 2.72%

Number of Hedge Fund Holders: 54

General Electric Company (NYSE:GE) is among the 10 stocks to invest in today according to billionaire Kerr Neilson. Platinum Asset Management initiated a brand new position in General Electric Company (NYSE:GE) during the third quarter. General Electric Company (NYSE:GE) is a transformational story with an innovative path to simplifying the company’s operations. The company plans to break up into three public companies.   

In the third quarter investor letter, Vulcan Value Partners, an investment management firm highlighted reasons for selling a stake in General Electric Company (NYSE:GE). Here is what Vulcan Value Partners stated about General Electric Company (NYSE:GE):

“During the quarter, we sold our positions in General Electric Co. General Electric is a company we followed for a long time. In the past, we removed General Electric Company (NYSE:GE) from the MVP list due to management’s poor capital allocation decisions which resulted in value instability. Larry Culp, the former CEO of Danaher, became CEO of General Electric in 2018. The company implemented a vast restructuring program to simplify the industrial side of its business, sold off non-core assets, paid down debt with the proceeds, and drastically shrunk GE Capital. These restructuring activities allowed its world-class jet engine and healthcare businesses to shine through, and improved value stability. As a result, we added the company back to the MVP list. While the pandemic negatively impacted General Electric’s aviation business in the short run, it also gave us the opportunity to buy General Electric Company (NYSE:GE) in the second quarter of 2020 with a substantial margin of safety. General Electric Company (NYSE:GE) is a good example of a competitively entrenched, yet slower growing MVP business. As its stock price rose rapidly over the last year, its value growth did not keep up, and the price to value gap closed quickly. As our margin of safety diminished, we sold our position in GE and allocated to more discounted companies.”

8. Gilead Sciences, Inc. (NASDAQ:GILD)

Platinum Asset Management’s Stake Value: $101 million

Percentage of Platinum Asset Management’s 13F Portfolio: 2.86%

Number of Hedge Fund Holders: 55

Billionaire Kerr Neilson has been holding a stake in Gilead Sciences, Inc. (NASDAQ:GILD) since 2015. The share price of Gilead Sciences, Inc. (NASDAQ:GILD) hasn’t performed well in the past several years. However, the shareholders benefited from the company’s strategy of returning cash in the form of dividends. Gilead Sciences, Inc. (NASDAQ:GILD) is currently offering a dividend yield of 4.4%. 

Unlike  ZTO Express (Cayman) Inc. (NYSE:ZTO) and Trip.com Group Limited (NASDAQ:TCOM), Gilead Sciences, Inc. (NASDAQ:GILD) shareholders have witnessed an increase in activity from the elite funds. Gilead Sciences, Inc. (NASDAQ:GILD) was in 55 hedge funds’ portfolios at the end of September. 

7. Barrick Gold Corporation (NYSE:GOLD)

Platinum Asset Management’s Stake Value: $128 million

Percentage of Platinum Asset Management’s 13F Portfolio: 3.62%

Number of Hedge Fund Holders: 41

Barrick Gold Corporation (NYSE:GOLD) is among the 10 stocks to invest in today according to billionaire Kerr Neilson. His firm held a stake in the company since 2012. Shares of Barrick Gold Corporation (NYSE:GOLD) have been under pressure over the last twelve months.

According to data tracked by Insider Monkey, the number of long hedge funds’ positions declined to 41 in Barrick Gold Corporation (NYSE:GOLD) as of the end of the third quarter. Jim Simons’ Renaissance Technologies and Ken Griffin’s Citadel Investment Group were among the leading stakeholders of Barrick Gold Corporation (NYSE:GOLD).

6. The Mosaic Company (NYSE:MOS)

Platinum Asset Management’s Stake Value: $137 million

Percentage of Platinum Asset Management’s 13F Portfolio: 3.86%

Number of Hedge Fund Holders: 40

A surge in phosphate and potash crop nutrients prices has led to a substantial increase in The Mosaic Company’s (NYSE:MOS) stock price over the past twelve months. Platinum Asset Management lifted its stake in The Mosaic Company (NYSE:MOS) by 12% during the third quarter to 3.86% of the overall portfolio. In addition to mining phosphate and potash, The Mosaic Company (NYSE:MOS) has segments including international distribution and Mosaic Fertilizantes. 

In the third quarter investor letter, Ariel Investments, an investment management firm, mentioned a few stocks including The Mosaic Company (NYSE:MOS). Here is what Ariel Investments stated about The Mosaic Company (NYSE:MOS):

“Our third quarter contributors generally fit this “happy family” description. The Mosaic Company (NYSE:MOS) is the largest contributor to performance this year as well as our biggest holding as we go to print. The company returned +12.20% in the quarter and +56.16% so far this year. We have long believed The Mosaic Company (NYSE:MOS) is well positioned to help the world feed its 7 billion people with a better diet amid finite agricultural resources. The company’s nutrients, particularly phosphates and potash, are key to improving yields on the limited number of global acres devoted to farming. Mosaic believes up to 60% of the yield on many crops is determined by the appropriate application of nutrients. For this reason, the company has remained focused on expanding its leadership position in this core fertilizer business. For several years, this concentrated effort did not show results. But in 2021, The Mosaic Company (NYSE:MOS)’s focus began to pay off. Strong U.S. crop prices, as well as growing transportation costs for imported fertilizer from overseas mines, have led to improved earnings expectations. Last December, analysts showed a mean estimate for The Mosaic Company (NYSE:MOS) 2021 EPS of $1.43. Today, those same analysts expect the company to earn $4.67! Estimates for 2022 EPS have also increased dramatically from $2.10 as of December 2020 to $4.99 today. We believe Mosaic will also continue to benefit from global inflation.”

Like ZTO Express (Cayman) Inc. (NYSE:ZTO) and Trip.com Group Limited (NASDAQ:TCOM), The Mosaic Company (NYSE:MOS) is among the 10 stocks to invest in today according to billionaire Kerr Neilson.