5 Best Stocks to Buy According to Billionaire David Harding

In this article we discuss the 5 best stocks to buy according to billionaire David Harding. If you want to read our detailed analysis of the banking industry, go directly to 10 Best Stocks to Buy According to Billionaire David Harding.

At Insider Monkey we leave no stone unturned when looking for the next great investment idea. For example, lithium mining is one of the fastest growing industries right now, so we are checking out stock pitches like this emerging lithium stock. We go through lists like the 10 best hydrogen fuel cell stocks to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our homepage. Keeping this in mind, let’s take a look at Harding’s top stock picks:

5. CME Group Inc. (NASDAQ: CME)

Value: $10,947,000
Percent of David Harding’s 13F Portfolio: 0.79%
Number of Hedge Fund Holders as of Q1: 60

CME Group Inc. (NASDAQ: CME) is an American global markets company, which provides electronic trading on its CME Globex platform. The company also operates a central counterparty clearing provider, CME Clearing, and is one of the biggest financial exchanges.  The pandemic affected the stock due to the lower volumes in energy and interest rate contracts over the recent quarters. However, since late March, the stock has gained 30% from seeing an all-time low of $140. Moreover, in 2020, the revenue of the company stood at $4.9 billion, with an operating income of $2.6 billion.

CME Group Inc. (NASDAQ: CME) has increased its dividend for the last 11 years, and this year its dividend is raised to $0.90 per share. Also, it has a five-year annual growth rate of about 10%.

Cooper Investors Global Equities Fund has mentioned CME Group Inc. (NASDAQ: CME) in their Q1 2021 investor letter. Here is what the fund has to say:

“CME has been owned by the portfolio for five years. CME’s strategic positioning as a monopolistic global financial exchange operator will continue to afford the business a highly attractive margin profile. CME is well managed however we can no longer identify clear value latency opportunities for the management team to execute against and so decided to exit our position.”