4 Top Stock Picks of Billionaire Nicholas J. Pritzker’s Tao Capital

Below is the list of 4 top stock picks of billionaire Nicholas J. Pritzker’s Tao Capital. For a comprehensive list and Nicholas J. Pritzker’s investment philosophy and professional background please see Top Stock Picks of Billionaire Nicholas J. Pritzker’s Tao Capital.

4. Tesla, Inc. (NASDAQ:TSLA)

Tao Capital‘s Stake Value: $39 million

Percentage of Tao Capital’s 13F Portfolio: 8.97% 

Number of Hedge Fund Holders: 60

Tesla, Inc. (NASDAQ:TSLA) has been a member of Nicholas J. Pritzker’s stock portfolio since the final quarter of 2019. Tesla stock price saw staggering gains last year on the back of several factors including deliveries growth, broader move towards electric vehicles along the S&P 500 inclusion. However, its stock price underperformed so far this year amid investors’ shift towards value stocks. 

In the third quarter investor letter, Worm Capital LLC, an investment management firm, expressed confidence in Tesla’s performance. Here is what Worm Capital LLC stated: 

“Our core portfolio as of this writing—TSLA, SPOT, SHOP, ABNB, and AMZN—are all premier examples of companies that use the concept of aggregation of marginal gains to continuously improve their value proposition for customers. After all, what is innovation if not just a continuous search for fractional advantages in business?

The way we see it, Tesla is perhaps the generational example of the marginal gain aggregation theory. It’s also been our largest position for several years now. There are many ways to characterize and value this business (see previous letters for long-form write-ups), but perhaps the best way to think about the company is that it is a highly vertically integrated software and hardware firm that’s devoted entirely to aggregating marginal gains across its organization. The goal? Lower costs, improve thruputs, and dramatically enhance the value proposition—at scale—for consumers…” (Click here to see the full text)