5 Best Stocks to Buy According to Billionaire David Abrams

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1. Loar Holdings Inc. (NYSE:LOAR)

Abrams Capital Management’s Stake: $2.1 Billion

Loar Holdings Inc. (NYSE:LOAR) is a relatively recent addition to the 13F portfolio of Abrams Capital Management, compared to other long-term holdings. The fund purchased a stake in the company back in the second quarter of 2024. Back then, this position comprised over 38 million shares. Abrams trimmed this holding by nearly 14% during the second quarter of 2025, bringing the shares owned to around 32 million. Loar remains the largest holding of the fund. The company designs, manufactures, and sells aerospace and defense components for aircraft, and aerospace and defense systems in the United States and internationally. It offers airframe components, structural components, avionics, composites, braking system components, de-ice and ice protection, as well as electro-mechanical and engineered materials.

Loar Holdings Inc. (NYSE:LOAR) is popular among elite investors on Wall Street for a number of reasons. One of these is that the company specializes in acquiring small, niche aerospace companies and integrating them into its higher-margin platform. The late 2025/early 2026 acquisitions of LMB Fans & Motors and Harper Engineering have been key catalysts. Hedge funds are also betting that Loar can expand the Adjusted EBITDA margins of these acquired companies to its corporate target of 40%. Management recently raised its 2026 net sales target to $640 million–$650 million specifically because of these successful integrations.

While we acknowledge the potential of LOAR to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than LOAR and that has 100x upside potential, check out our report about the cheapest AI stock.

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