In this article, we will take a detailed look at the 11 Best Jim Cramer Stocks To Buy According to Billionaires.
There seems to be a consensus among analysts that while the Fed is expected to start cutting interest rates in 2024, these cuts won’t come early in the year. The first six months of 2024 would be crucial as this time period will decide whether or not the Fed’s long battle against inflation was successful. After all, Powell does not want to repeat the central bank’s mistake of 1967, where it was too quick to cut rates, only to see the inflation monster come back. But keep the interest rates high for too long and you exacerbate the risks of tipping the economy into recession. The irony and struggle is real for the central bank and the coming days would be interesting as well as never-racking for investors.
“Short-termism” in Financial Markets: An Opportunity for Wise Investors
This year was marked by the exponential rise in “short termism” of the financial markets, which was already a major problem according to experts. Investors spent most of their time this year looking over their shoulders for the next CPI report or the next Fed decision. On the other hand, a key theme commonly observed in the investment philosophies of billionaires is their incessant focus on long-term horizons and avoidance of giving in to short-term market temptations.
A Goldman Sachs report from 2018 analyzes in detail the problem of short-termism of the markets. It believes the market’s huge focus on short-term market movements have created opportunities for long-term investors:
“We believe that the short-termism of market participants creates opportunities for long-term investors willing to extend their time horizon out three to five years. Economies and markets have benefited immeasurably from advancements in technology over the past half century that have boosted productivity and enabled communications that instantly bridge the world. But these benefits have not come without unintended consequences, particularly when we examine the shrinking attention span and time horizon of our financial markets.”
Methodology
Since billionaires and famous analysts focus on the long-term market outlook, it’s a good idea to see how have they been assessing the market and picking stocks this year. For this article we first listed down all the stocks Jim Cramer has been recommending this year. From this long list of stocks we picked 11 stocks with the highest number of billionaire investors. For that we used Insider Monkey’s proprietary database of billionaire-owned stocks. Some notable names in the list include NVIDIA Corp (NASDAQ:NVDA), Meta Platforms Inc (NASDAQ:META) and Amazon.com, Inc. (NASDAQ:AMZN).
11. Apple Inc (NASDAQ:AAPL)
Number of Billionaire Investors: 19
Jim Cramer has time and again said that Apple Inc (NASDAQ:AAPL) is a stock to buy and hold not trade. He’s been bullish on the stock’s long-term growth prospects despite concerns from some circles that Apple Inc might be touching iPhone sales plateau and Apple Inc would need something special to enjoy growth of the past glory days.
Insider Monkey’s database of billionaires shows that 19 billionaires had stakes in Apple Inc as of the end of the third quarter of 2023. The biggest hedge fund stakeholder of Apple Inc was Warren Buffett who owns a $157 billion stake in Apple Inc.
Here is what White Brook Capital has to say about Apple Inc. in its Q3 2023 investor letter:
“The magnificent seven, that underpin the S&P 500 performance, which includes Apple Inc., 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.”
10. TJX Companies Inc (NYSE:TJX)
Number of Billionaire Investors: 19
Last month, Jim Cramer said that TJX Companies Inc (NYSE:TJX) was a Buy at current levels. Cramer said in a program that he thinks TJX Companies Inc should be bought “right here, right now.” Cramer was comparing TJX with Ross Stores and praised the former’s business and products.
TJX Companies Inc stock has gained about 12% year to date through December 11.
A total of 19 billionaires tracked by Insider Monkey had stakes in TJX Companies Inc. Some notable stakeholders of TJX Companies Inc are D. E. Shaw, Cliff Asness, Joel Greenblatt, among many others.
ClearBridge Multi Cap Growth Strategy made the following comment about The TJX Companies, Inc. in its Q2 2023 investor letter:
“Top heavy leadership has overshadowed weakness across much of the equity market. We took advantage of the narrow breadth in the second quarter to increase our exposure to the consumer discretionary sector with two purchases that further enhance portfolio diversification and should help support consistent performance through a full cycle.
The TJX Companies, Inc. (NYSE:TJX) is the leading off-price apparel and home furnishings retailer known for its TJ Maxx, Marshalls and HomeGoods brands, with 4,800 global locations. We see TJX as a differentiated retailer offering shoppers a combination of value and convenience with continued share gain opportunity against large addressable U.S. markets for apparel and home decor. We also see room for TJX to modestly expand margins on the back of sales leverage and as freight, shrink and wage pressures ease. While TJX is not immune to macro risks, we see the company as relatively well-positioned even in the event of an economic deterioration as benefits from better inventory availability and consumer trade-down accrue.”
9. Netflix Inc (NASDAQ:NFLX)
Number of Billionaire Investors: 20
Earlier this year Jim Cramer praised Netflix Inc’s (NASDAQ:NFLX) results and said Netflix Inc saw growth amid its crackdown against password sharing. But Cramer said Netflix did not give a strong guidance which puts the sustainability of its growth into question. In July Cramer said that Netflix Inc was suffering a hard selloff but predicted the stock would rebound strongly.
On a year-to-date basis the stock is up by about 53%.
Insider Monkey’s database of billionaires shows that 20 billionaire-led hedge funds had stakes in Netflix Inc. The biggest stakeholder of Netflix Inc during this period was Ken Fisher’s Fisher Asset Management which owns a $1.5 billion stake in Netflix Inc.
Carillon Clarivest Capital Appreciation Fund made the following comment about Netflix, Inc. in its Q3 2023 investor letter:
“During the third quarter of 2023, an underweight to real estate and an overweight to healthcare helped performance, while an overweight to information technology and an underweight to energy detracted. Stock selection was strong within information technology and consumer staples but was weak within financials and communication services. Netflix, Inc. (NASDAQ:NFLX), the internet streaming subscription service company, missed expectations. That suggested the company’s crackdown on pass-word sharing has yet to deliver the sales growth analysts expect.”
8. Eli Lilly And Co (NYSE:LLY)
Number of Billionaire Investors: 20
Eli Lilly And Co (NYSE:LLY) earlier this month announced a whopping 15% raise in its quarterly dividends. Eli Lilly And Co is in Jim Cramer’s Trust portfolio. Recently, Cramer talked about the stock in his program and said Eli Lilly And Co’s weight loss drug has strong prospects.
Recently, a study published on medRxiv found that Eli Lilly And Co’s anti-obesity medication tirzepatide is three times more likely to cause a 15% weight reduction compared to Novo Novo Nordisk A/S (NYSE:NVO)’s rival therapy, semaglutide.
Like NVIDIA Corp, Meta Platforms Inc and Amazon.com, Inc., hedge funds and Jim Cramer are bullish on LLY.
Carillon Clarivest Capital Appreciation Fund made the following comment about Eli Lilly and Company in its Q3 2023 investor letter:
“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.”
7. Lennar Corp (NYSE:LEN)
Number of Billionaire Investors: 20
Jim Cramer recently gave bullish comments on Lennar Corp (NYSE:LEN) as he praised Lennar Corp’s earnings. Cramer said that Lennar Corp is “not that expensive.” Cramer is bullish on the homebuilder sector amid growing demand and low competition. He said that homebuilding stocks is a group he’s least worried about.
A total of 20 billionaires tracked by Insider Monkey had stakes in Lennar Corp. The biggest hedge fund stakeholder of Lennar Corp during this period was Edgar Wachenheim’s Greenhaven Associates which owns a $1 billion stake in Lennar Corp.
6. UnitedHealth Group Inc (NYSE:UNH)
Number of Billionaire Investors: 21
UnitedHealth Group Inc (NYSE:UNH) is one of the best of breed stocks according to Jim Cramer, given the size and market share UnitedHealth Group Inc enjoys in the insurance business. Back in December 2022, Cramer recommended the stock for 2023.
As of December 11, UnitedHealth Group Inc shares have gained about 6% year to date.
A total of 21 billionaires reported owning stakes in UnitedHealth Group Inc as of the end of September this year. Rajiv Jain’s GQG Partners owns a $1.6 billion stake in UnitedHealth Group Inc.
In addition to UNH, Jim Cramer and billionaires also like NVIDIA Corp, Meta Platforms Inc and Amazon.com, Inc..
Carillon Eagle Mid Cap Growth Fund made the following comment about UnitedHealth Group Incorporated in its Q3 2023 investor letter:
“UnitedHealth Group Incorporated (NYSE:UNH) reported better than feared second-quarter results, although the company acknowledged that healthcare utilization trends have increased year to date. The company also benefitted from improving sentiment for the managed care industry as a whole, which was likely related to the recent rise in Treasury yields.”
5. Uber Technologies Inc (NYSE:UBER)
Number of Billionaire Investors: 23
Last month, Jim Cramer gave some bullish comments on Uber Technologies Inc (NYSE:UBER) while answering a question about Uber Technologies Inc. Cramer said the company posted some “amazing numbers” for the recently reported quarter.
Uber Technologies Inc is all set to join the S&P 500 index later this month. Argus recently increased its price target on Uber Technologies Inc to $69. The firm praised Uber Technologies Inc’s cost-cutting measures which helped it swing to profitability.
“We note that Uber has significant size and scale advantages over Lyft and believe that it has moved past a multiyear period of operating losses. We also expect it to begin share buybacks,” Argus said.
Here is what Polen U.S. Opportunistic High Yield Fund has to say about Uber Technologies, Inc. in its Q3 2023 investor letter:
“Uber Technologies provides ride hailing services to customers worldwide. The Company develops applications for road transportation, navigation, ride sharing, and payment processing solutions. Polen Capital originally purchased the 4.5% Senior Unsecured Notes due 2029 in our client accounts on the back of the Company’s new focus on profitability and free-cash-flow generation. Our view was that the Company’s credit metrics would improve over the next two-to-three years to levels on par with investment grade issuers. The Company’s fundamental profile has improved which resulted in spread tightening. Given the yield currently offered on the Notes, Polen Capital sold down its exposure and used the proceeds to purchase higher yielding debt instruments.”
4. NVIDIA Corp (NASDAQ:NVDA)
Number of Billionaire Investors: 29
Cramer has been praising NVIDIA Corp due to its AI-fueled rally and long-term growth prospects. Cramer was excited about NVIDIA Corp’s release of its latest chip H200 and said this is “the one everyone’s been waiting for.”
Cramer’s Charitable Trust has a stake in NVIDIA Corp, according to CNBC.
Billionaires are also piling into NVIDIA Corp shares this year. Insider Monkey’s proprietary database shows that 29 billionaires had stakes in NVIDIA Corp. The biggest stakeholder of NVIDIA Corp was Rajiv Jain’s GQG Partners which owns a $6.1 billion stake in NVIDIA Corp.
Here is what White Brook Capital has to say about NVIDIA Corporation in its Q3 2023 investor letter:
“The magnificent seven, that underpin the S&P 500 performance, which includes NVIDIA Corporation, 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.”
3. Meta Platforms Inc (NASDAQ:META)
Number of Billionaire Investors: 32
Meta Platforms Inc is another stock Jim Cramer has been bullish on due to the AI-led rally. Earlier this year, Cramer said despite problems he stuck with Meta Platforms, Inc.. When ChatGPT came along, it acted as a game changer and gave a boost to Meta Platforms Inc amid the generative AI boom. The stock has gained about 166% year to date through December 11.
As of the end of the third quarter of 2023, 234 hedge funds reported owning stakes in Meta Platforms, Inc.. The biggest stakeholder of Meta Platforms, Inc. was Rajiv Jain’s GQG Partners which owns a $3.3 billion stake in Meta Platforms Inc.
Here is what White Brook Capital has to say about Meta Platforms, Inc. in its Q3 2023 investor letter:
“The magnificent seven, that underpin the S&P 500 performance, which includes Meta Platforms, Inc., 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.”
2. Amazon.com Inc (NASDAQ:AMZN)
Number of Billionaire Investors: 33
Jim Cramer earlier this year said that Andy Jassy, Amazon.com, Inc.’s CEO, is “back” and he’s in his “prime.” Jassy recently sat down with Cramer for an interview and they spent most of their time discussing AI and how Amazon.com Inc (NASDAQ:AMZN would benefit from the AI revolution.
Billionaires have been piling into Amazon.com Inc shares this year. A total of 33 billionaires in Insider Monkey database had stakes in Amazon.com Inc as of the end of the September quarter. Some notable billionaires having stakes in Amazon.com Inc include Ken Fisher, Rajiv Jain, Philippe Laffont and Warren Buffett.
Here is what White Brook Capital has to say about Amazon.com, Inc. in its Q3 2023 investor letter:
“The magnificent seven, that underpin the S&P 500 performance, which includes Amazon.com, Inc., 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.”
1. Microsoft Corp (NASDAQ:MSFT)
Number of Billionaire Investors: 34
Jim Cramer kept praising Microsoft Corp (NASDAQ:MSFT) this year. He’s excited about Microsoft Corp’s AI offerings, including the Copilot product.
“I think it’s better to put Microsoft Corporation front and center in AI. They’ve got a real AI product. That is definitely, as Citi says, ‘a rich catalyst.’” Cramer said in a program on CNBC.
Here is what White Brook Capital has to say about Microsoft Corporation in its Q3 2023 investor letter:
“The magnificent seven, that underpin the S&P 500 performance, which includes Microsoft Corporation, 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. 11 Best Jim Cramer Stocks To Buy According to Billionaires was initially published on Insider Monkey.
