In this article, we will take a look at the 12 Major Stocks to Buy According to Billionaires.
The U.S. stock market had one of the worst starts, at least the worst start to a presidency since 1928. The S&P 500 is just recovering following the latest U.S.-China trade deal update, as both countries have agreed to significantly cut tariffs on each other’s imports for 90 days. The S&P 500 index is up by a meagre 0.30% year-to-date, as tech stocks rallied following the tariff reduction.
ALSO READ: 13 Best Technology Stocks to Buy for Long-Term Investment
Tariffs on Hold
Markets finally had a sigh of relief after the U.S.-China trade deal. The tariff reduction potentially negates all bear cases anticipated by Wall Street analysts based on the tariff risks. Sylvia Jablonski, CEO and CIO of Defiance ETFs called the tariff cut a “game changer” in a recent appearance on a CNBC show.
“I think both countries probably saw a little bit of the demise of what would be here with a non-tariff deal as the data came in. You had a lot of complaints around China across all sectors, and then in the US, retailers were reaching out to President Trump and saying that shelves are empty and, you know, a lot of panic about semiconductor software companies. I think that this is really a game changer for both countries, and the big message here is that both countries, it sounds like, decided that they really don’t want to decouple, and, you know, make America great might also mean that, you know, China stays.”
President Trump’s Betting Big on AI
President Trump and his team at the White House have secured around $2 trillion in new company investments since Inauguration Day. The administration emphasizes that these investments indicate a broad economic renaissance. The tech giants are investing following the President’s plan to bring investments into the US. According to Yahoo Finance, these investments are mainly clustered in the world of Big Tech and largely come from sectors where Trump’s Final tariff plans are most uncertain.
Apple and Nvidia have promised to invest $500 billion each in AI infrastructure, manufacturing, and training. Healthcare and new pharmaceutical manufacturing account for almost 11% of the total investments to be made in the U.S., as per Yahoo Finance.
With that, let’s take a look at the 12 Major Stocks to Buy According to Billionaires.
Our Methodology
We have listed the 12 Major Stocks to Buy According to Billionaires, according to Insider Monkey’s database. We picked the 12 stocks with the highest number of billionaire investors, updated as of Q4 2024. All of these billionaire investors are founders or managers of some of the top hedge funds in the world. We have also mentioned the number of hedge funds holding stakes in these stocks. The best major stocks are ranked in ascending order of the number of billionaires that have stakes in them.
Why are we interested in the stocks that hedge funds and billionaire investors pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
12 Best Major Stocks to Buy According to Billionaires
12. Salesforce, Inc. (NYSE:CRM)
No. of Billionaire Holders: 23
No. of Hedge Fund Holders: 162
Salesforce, Inc. (NYSE:CRM) is a leading provider of customer relationship management (CRM) technology. The company’s CRM platform provides Salesforce Starter, Tableau, Slack, Agentforce, Industries AI, Data Cloud, and integration and analytics solutions.
On May 12, Bradley Sills from Bank of America reiterated a Buy rating with positive views regarding Salesforce’s Sales Cloud offering. Despite a price target reduction from $440 to $350, Sills believes that Sales Cloud will maintain a 25% market share in the $39 billion Sales CRM industry through 2027. Sales Cloud growth rate could increase from 9-10% to a sustainable 12%, added Sills. The analyst also highlighted that high-priced products such as Industry Cloud, Revenue Cloud, and Agentforce will be a key growth factor.
Wall Street analysts expect Salesforce, Inc. (NYSE:CRM) to post adjusted earnings of $2.55 per share during Q1 FY2026, flat year-over-year. The revenue is projected to be around $9.75 billion, up 6% from a year ago, driven by Agenforce adoption and Data Cloud. Both earnings and revenue are anticipated to miss consensus estimates by a slight margin, due to higher R&D for Agentforce 2.0 and tariff costs.
11. Eli Lilly and Company (NYSE:LLY)
No. of Billionaire Holders: 23
No. of Hedge Fund Holders: 115
Eli Lilly and Company (NYSE:LLY) is a leading medicine company which discovers, develops, manufactures, and markets products in the pharmaceutical products segment. The company recently released new trial data showing its weight loss drug, Zepbound, posted stronger results than its peer’s drug Wegovy.
Eli Lilly and Company (NYSE:LLY) reported strong financial results during the first quarter of 2025, driven by the sales of its weight loss drugs, including Mounjaro and Zepbound. The quarterly sales of Mounjaro and Zepbound were around $3.8 billion and $2.3 billion, a significant increase from a year ago. Overall, the total revenue was around $12.73 billion, up by almost 45% year-over-year and exceeding estimates by $6.85 million. The adjusted earnings came in at $3.34 per share, missing the estimates by $0.12. The EPS was impacted by IP R&D charges, which impacted the earnings by $1.72 per share. For the second quarter, the company expects revenue to be around $13.8 billion and adjusted earnings to be around $4.10 per share, driven by Mounjaro, Zepbound, and Verzenio. Despite the tariff and competitive pressures, analysts expect the company to do better.
On May 2, UBS analyst Trung Huynh reduced the price target on LLY from $1,100 to $1,050. Despite the downgrade in price target, Huynh maintains a Buy rating on LLY.