In this article, we will discuss: 5 Best Stocks to Buy According to Billionaire Richard Chilton. For more stocks, you can head to 10 Best Stocks to Buy According to Billionaire Richard Chilton.
Richard Chilton of Chilton Investment Company
5. Mastercard Incorporated (NYSE:MA)
Chilton Investments’ Stake: $202 million
Payment platform Mastercard Incorporated (NYSE:MA)’s shares are down by 8.8% over the past year and 11.7% year-to-date. In today’s AI-driven market, the firm made a key announcement on June 10th when it announced its Agent Pay for Machines platform. The platform enables transactions between AI agents and its network. A day earlier, on the 9th, Mastercard Incorporated (NYSE:MA) and peer firm Visa’s longstanding dispute with merchants also made headway after a court granted preliminary approval to a $38 billion settlement.
As part of its fiscal first quarter 2026 earnings, Mastercard Incorporated (NYSE:MA) posted $8.4 billion in net revenues and $4.60 in adjusted earnings per share. The figures beat analyst estimates of $8.26 billion and $4.41. The shares currently trade at a forward P/E ratio of 24.94, which is slightly higher than the S&P’s 21.
L1 Capital International Fund discussed Mastercard Incorporated (NYSE:MA) in its Q1 2026 investor letter:
“Mastercard Incorporated (NYSE:MA) and Visa remain two of the Fund’s largest holdings. Both businesses continue to deliver consistent financial performance, with double-digit earnings growth. Despite this, share prices have drifted over the past 12 months and underperformed the broader market, including a decline of more than 10% during the March quarter. This underperformance reflects concerns that emerging technologies – including agentic commerce, stablecoins and alternative payment rails – may disrupt the traditional payments ecosystem.”
4. Republic Services, Inc. (NYSE:RSG)
Chilton Investments’ Stake: $274 million
Republic Services, Inc. (NYSE:RSG) is one of the largest waste collection companies in America. Its shares are down by 11.5% over the past year and are up by 3% year-to-date. Citi discussed the firm on May 12th as it cut the share price target to $247 from $253 and kept a Buy rating on the shares. Similarly, CIBC also reduced the share price target. It lowered it to $249 from $251 and kept an Outperform rating on the stock. The financial firm discussed Republic Services, Inc. (NYSE:RSG)’s first-quarter earnings and remarked that despite macroeconomic struggles, the results were solid. As part of its earnings, the waste collection firm posted $4.11 billion in revenue and $1.70 in earnings per share to beat analyst estimates of $4.10 billion and $1.64.
Republic Services, Inc. (NYSE:RSG)’s shares are trading at a forward P/E ratio of 29.67, which is higher than the S&P’s 21. The firm scored a win earlier this month after the Federal Trade Commission allowed it to acquire assets from TD*X Associates. The latter operates facilities to process hazardous waste.
3. The Sherwin-Williams Company (NYSE:SHW)
Chilton Investments’ Stake: $315 million
The Sherwin-Williams Company (NYSE:SHW) is a specialty chemicals company that makes and sells paints, coatings, and other associated products. The shares are flat over the year and up by 4.5% year-to-date. Citi discussed the firm on June 24th as it raised the share price target to $380 from $355 and kept a Buy rating on the shares. Citi had reinstated coverage of The Sherwin-Williams Company (NYSE:SHW) on June 3rd and set a $355 price target along with a Buy rating. It had viewed the price back then as an attractive entry opportunity, as it could offer upside in case of a cyclical recovery.
UBS cut the share price target to $330 from $385 and reduced the rating to Neutral from Buy on June 2nd as part of a more balanced risk-reward outlook. The Sherwin-Williams Company (NYSE:SHW)’s shares trade at a forward P/E multiple of 28.82, which is higher than the S&P 500’s 21.
Aoris Investment Management discussed The Sherwin-Williams Company (NYSE:SHW) in its Q1 2026 investor letter:
“The Sherwin-Williams Company (NYSE:SHW) is a leading provider of paints and coatings, with a particularly strong position with professional painters in the US. A key driver of the paint market is the volume of property sales, as homes are often repainted after they’re purchased. Higher mortgage rates and lower population growth in the US have meant the number of property sales has been weak in recent years, affecting Sherwin-Williams’ paint volumes.
Growth in its industrial coatings business has also been weak due to a sluggish industrial economy. Even though Sherwin-Williams has continued to grow its market share, we have become concerned that its end markets are structurally slower growing. We also had the opportunity to purchase a higher quality business in Cintas at a wider discount to fair value.”
2. Costco Wholesale Corporation (NASDAQ:COST)
Chilton Investments’ Stake: $335 million
Membership warehouse retailer Costco Wholesale Corporation (NASDAQ:COST)’s shares are down by 2.4% over the past year and are up by 12.3% year-to-date. The firm reported its latest sales figure earlier this month and posted $24 billion in net sales for May, which marked a 14.5% annual growth. For the first 39 weeks of the year, Costco Wholesale Corporation (NASDAQ:COST) posted $221.9 billion in net sales to mark a 10% annual growth. Morgan Stanley discussed the firm on May 29th as it reiterated a Buy rating and a $1,130 share price target. The bank commented on Costco Wholesale Corporation (NASDAQ:COST)’s strong business as part of its coverage to remark that its supply chain, scale and value proposition could lead to strong performance in today’s tough environment.
Costco Wholesale Corporation (NASDAQ:COST)’s shares trade at a hefty forward P/E multiple of 41.84, which is significantly higher than the market’s 21.
It is also a favorite stock of CNBC’s Jim Cramer. In a recent appearance on Mad Money, the TV host remarked:
“Okay… I think that you buy some here, it’s at 47 times earnings, and then you hope it goes to 45. Now, I know people say, what do you mean, buy some and then hope it goes lower, but that’s how I work. I want value just like I want value at a store. And I think if you start Costco and you let it come in a little, well, that’s the way to play it. The worst that happens is it flies right out, 974 to 1025, and you have to kick it out. Let’s do it that way so that we don’t get caught up at one level because nobody’s that good.”
1. Microsoft Corporation (NASDAQ:MSFT)
Chilton Investments’ Stake: $352 million
Technology giant Microsoft Corporation (NASDAQ:MSFT)’s shares are among the weakest in the market this year as they are down by 22% year-to-date. The firm scored a win earlier this month when it announced on the 23rd that it had completed its first data center in Mount Pleasant. The data center is designed to support supercomputing and artificial intelligence, and Microsoft Corporation (NASDAQ:MSFT) continues to invest in the region until 2028. The firm also made inroads in the global clinical research sector in June after ICON plc selected it as a partner for its enterprise software needs. Through the deal, Microsoft Corporation (NASDAQ:MSFT)’s Microsoft 365 and Copilot software will be deployed by the firm.
Stifel discussed the firm on June 23rd as it reiterated a Hold rating and a $415 share price target. The coverage came after Microsoft Corporation (NASDAQ:MSFT) partnered with Chevron to support its power procurement needs.
Janus Henderson Global Sustainable Equity Fund discussed Microsoft Corporation (NASDAQ:MSFT) in its Q1 2026 investor letter:
“Microsoft Corporation (NASDAQ:MSFT) shares underperformed amid concerns over near-term returns from elevated cloud infrastructure investment and slower growth in the legacy software segment. While we trimmed the position in favor of more attractively valued opportunities, our long-term thesis remains intact. Microsoft benefits from powerful network effects and a deeply embedded ecosystem across productivity, cloud, and developer platforms, reinforcing its competitive moat. Its carbon-neutral Azure cloud platform plays a critical role in enabling businesses to decarbonize energy-intensive computing operations across sectors globally.”
While we acknowledge the potential of MSFT 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 MSFT and that has 100x upside potential, check out our report about the cheapest AI stock.
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