In this article, we discuss the 10 best stocks to buy now according to billionaire Ken Fisher.
Ken Fisher is an American billionaire investor, author, financial analyst, and the founder and manager of Fisher Asset Management. Known for being a contrarian, and with an investment philosophy that revolves around a fundamental belief in capitalism, he is one of the most well-known investment managers in the world. According to Forbes, as of 2022, the billionaire investor has a net worth of $5.1 billion, while managing $141.3 billion worth of assets through his hedge fund as of the second quarter.
In the early 1980s, Ken Fisher pioneered the use of the Price-to-Sales Ratio and detailed its relevance as a tool for financial investment analysis. His hedge fund makes use of this tool to help manage small capitalization portfolios for institutional investors across the United States, Europe, Canada, Asia, Australia, and the Middle East. Fisher Asset Management’s philosophy is based on Ken Fisher’s knowledge around the functionality of free markets. The billionaire investor believes supply and demand are the sole determinants of securities pricing and that capital markets are relatively efficient discounters of widely-known information. According to Fisher, in order to add value to their portfolio, a manager must seek out information that is not widely available, or interpret widely-known information uniquely.
In Q2, Fisher Asset Management made 94 new stock purchases and increased the size of its position in 481 stocks, with most of the portfolio dominated by the technology, healthcare and financial sectors. Furthermore, the firm sold out of 109 stocks and reduced its position in 315 stocks by the end of the quarter. Apple Inc. (NASDAQ:AAPL), Amazon.com, Inc. (NASDAQ:AMZN), Alphabet Inc. (NASDAQ:GOOG), and Microsoft Corporation (NASDAQ:MSFT) rank among the investment firm’s top 10 holdings.
Ken Fisher of Fisher Asset Management
Our Methodology
After a thorough analysis of Fisher Asset Management’s 13F portfolio, we picked the 10 most significant stocks that the firm holds as of Q2 2022. The hedge fund sentiment around each stock has been taken from the 895 elite hedge funds tracked by Insider Monkey that filed 13Fs for the second quarter of 2022.
10 Best Stocks to Buy Now According to Billionaire Ken Fisher
10. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
Fisher Asset Management’s Stake Value: $2.15 billion
Percentage of Fisher Asset Management’s 13F Portfolio: 1.52%
Number of Hedge Fund Holders: 72
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is a Taiwanese multinational semiconductor contract manufacturing and design company that manufactures, packages, tests, and sells integrated circuits and other semiconductor devices across the globe. Ken Fisher’s Fisher Asset Management owns more than 26.3 million shares of Taiwan Semiconductor Manufacturing Company Limited as of June 30, which amounts to a stake worth $2.15 billion.
Earlier this July, Susquehanna analyst Mehdi Hosseini lowered the price target on Taiwan Semiconductor Manufacturing Company Limited to $88 from $90 and kept a ‘Neutral’ rating on the shares. According to the analyst, the company’s stronger revenues in 2022 actually make the 2023 comparables more challenging. Although Hosseini was encouraged to hear that the company’s management was taking note of a looming inventory correction, he believes that the 1H23 inventory correction will be more severe than expected.
At the end of Q2 2022, 72 hedge funds were bullish on Taiwan Semiconductor Manufacturing Company Limited, holding stakes worth $9.22 billion. Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital was one of the company’s leading shareholders, with a stake worth approximately $1.19 billion.
Alongside Apple Inc., Amazon.com, Inc., Alphabet Inc., and Microsoft Corporation, Taiwan Semiconductor Manufacturing Company Limited is one of the most prominent stocks in Ken Fisher’s portfolio.
Here is what The Mercator International Opportunity Fund had to say about Taiwan Semiconductor Manufacturing Company Limited in its Q2, 2022 investor letter:
“Another example of this buyers’ strike is Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) (1.81%), down 40% from its high and trading at less than 15 times forward earnings. When TSM announced better-than-expected earnings growth of 67% in the second quarter with no slowdown in sight, the stock barely gained a few percentage points. No matter how good the news, buyers are not showing up. Yet.”
9. ASML Holding N.V. (NASDAQ:ASML)
Fisher Asset Management’s Stake Value: $2.18 billion
Percentage of Fisher Asset Management’s 13F Portfolio: 1.54%
Number of Hedge Fund Holders: 47
ASML Holding N.V. (NASDAQ:ASML), originally standing for “Advanced Semiconductor Materials Lithography”, is a Dutch multinational corporation that specializes in the development, production, marketing, sale and servicing of advanced semiconductor equipment, consisting of lithography-related systems. Fisher Asset Management raised its stake in ASML Holding N.V. by 4% during Q2, with its total investment valued at $2.18 billion as of June 30.
On July 21, JPMorgan analyst Sandeep Deshpande lowered the price target on ASML Holding N.V. to $794 from $925 but maintained an ‘Overweight’ rating on the shares following the company’s Q2 results.
At the end of Q2 2022, 47 hedge funds were bullish on ASML Holding N.V., holding stakes worth $3.65 billion in the company. That is compared to 46 positions in the preceding quarter that were worth $5.04 billion. Alkeon Capital Management was one of the company’s most prominent stakeholders at the close of Q2, with 726,787 shares worth roughly $330 million.
Here is what ClearBridge Investments had to say about ASML Holding N.V. in its Q1 2022 investor letter:
“During the quarter, we reduced our semiconductor exposure through the trim of ASML (NASDAQ:ASML) to manage concerns of a slowdown due to the risk of double ordering and potential softness in some consumer end markets. We increased our position in IT services with the purchase of Accenture as we remain optimistic about the long-term growth potential these companies provide, which is underpinned by the compressed digital transformation cycle, rising cloud adoption and growth in data-driven insights.
Despite the market volatility and hyper-focus on rising rates, chief information officer surveys continue to forecast resilience in IT budgets this year. Growth in IT spending for 2022 is expected to remain above the 10-year pre-COVID-19 average, according to Morgan Stanley. We believe this is a result of the strong secular underpinnings brought on by digital transformation and businesses focusing on increasing efficiencies through technology.”
8. Adobe Inc. (NASDAQ:ADBE)
Fisher Asset Management’s Stake Value: $2.26 billion
Percentage of Fisher Asset Management’s 13F Portfolio: 1.6%
Number of Hedge Fund Holders: 92
Adobe Inc. (NASDAQ:ADBE), originally called Adobe Systems Incorporated, is an American multinational computer software company that provides creative-cloud services and specializes in digital media and marketing solutions. Regulatory filings revealed that Fisher Asset Management owned over 6.18 million shares of Adobe Inc. at the end of the second quarter of 2022, valued at $2.26 billion, representing 1.6% of the portfolio.
In June, BMO Capital analyst Keith Bachman lowered the price target on Adobe Inc. to $420 from $450 but kept an ‘Outperform’ rating on the shares. According to the analyst, the company’s quarter net of FX was “very solid” and its management also maintained its FY22 guidance for revenue and ARR. On the other hand, the analyst states that management’s outlook for Q3 fell below forecasts.
According to Insider Monkey’s database, Adobe Inc. was found in the public stock portfolios of 92 hedge funds at the end of June 2022, compared to 93 funds in the earlier quarter. Terry Smith of Fundsmith LLP is one of the company’s leading shareholders, with 2.1 million shares worth roughly $772 million.
Here is what Weitz Investment Management specifically said about Adobe Inc. in its Q2 2022 letter.
“We added a new position in Adobe Inc. (NASDAQ:ADBE) as software stocks continued their fall from grace. Adobe is a leading provider of software in three large segments with nice tailwinds. Creative Cloud, a collection of Adobe’s software and applications, serves professionals, communicators, and consumers in the rapidly growing creator economy.
Document Cloud includes the ubiquitous PDF technology, Acrobat and Adobe Sign applications, and other tools to power digital documents. Experience Cloud is a customer experience platform that is a marketing tech leader alongside Salesforce.com (CRM).
Adobe is a “meat and potatoes” software investment with deeply entrenched competitive positions, exceptional margins and free cash flows, and long runways for sustainable, above-average growth. Most importantly, we think this well-managed business trades at a very fair price to a long- term owner.”
7. The Home Depot, Inc. (NYSE:HD)
Fisher Asset Management’s Stake Value: $2.29 billion
Percentage of Fisher Asset Management’s 13F Portfolio: 1.62%
Number of Hedge Fund Holders: 80
The Home Depot, Inc. (NYSE:HD), the largest home improvement retailer in the United States, is an American multinational corporation that sells tools, construction products, appliances, and services. At the end of Q2 2022, Ken Fisher’s hedge fund owned over 8.35 million shares of The Home Depot, Inc., valued at over $2.29 billion, making up 1.62% of Ken Fisher’s portfolio.
On August 17, Truist analyst Scot Ciccarelli raised the price target on The Home Depot, Inc. to $399 from $375 and kept a ‘Buy’ rating on the shares. According to the analyst, the company’s Q2 results were “solid” and its business trends remain strong despite macro concerns. Although there is a substantial supply/demand imbalance in the housing market, Ciccarelli remains bullish on the home improvement sector.
In the second quarter of 2022, the company experienced positive hedge fund sentiment, with 80 elite funds tracked by Insider Monkey owning stakes in the company, up from 75 in the previous quarter. The aggregate value of those stakes was roughly $5.35 billion. Jim Simons’ Renaissance Technologies is one of the leading shareholders of The Home Depot, Inc., with a position valued at $480.2 million.
Here is what Diamond Hill Large Cap Fund had to say about The Home Depot, Inc. in its Q1 2022 investor letter:
“Home Depot shares underperformed as continued solid fundamental results were outweighed by concerns about the impact rising mortgage rates may have on the housing market and general inflationary pressures potentially leading to a consumer spending slowdown. We view the long-term prospects and multi-year fundamental outlook as unchanged.”
6. Salesforce, Inc. (NYSE:CRM)
Fisher Asset Management’s Stake Value: $2.58 million
Percentage of Fisher Asset Management’s 13F Portfolio: 1.83%
Number of Hedge Fund Holders: 116
Salesforce, Inc. (NYSE:CRM) is an American cloud-based software company that provides customer relationship management software and applications. Billionaire Ken Fisher increased his stake in Salesforce, Inc. by 3% as of Q2 2022, with a total stake value of more than $2.58 billion.
BMO Capital analyst Keith Bachman lowered the price target on Salesforce.com, Inc. to $207 from $223 but maintained an ‘Outperform’ rating on the shares after the company’s Q2 results and guidance on August 25. Although the company’s reported Q2 current remaining performance obligation, or CRPO, and Q3 CRPO guides were reasonable in a weak backdrop of elongated sales cycles, Bachman believes that the company’s maintained operating margin outlook for the fiscal year 2023 is a positive.
Salesforce, Inc. earned $1.19 per share on an adjusted basis, beating market estimates of $1.02 per share. The company’s revenue for the quarter rose by 26% on a year-over-year basis to $7.72 billion, surpassing the consensus by $23.1 million.
Among the hedge funds tracked by Insider Monkey, 116 were long Salesforce, Inc. in the second quarter of 2022, compared to 114 funds in the previous quarter. Chicago-based investment firm Harris Associates is a notable shareholder of Salesforce, Inc., with 5.02 million shares worth approximately $829 million.
Much like Apple Inc., Amazon.com, Inc., Alphabet Inc., and Microsoft Corporation, Salesforce, Inc. is one of Ken Fisher’s favorite stocks. See the rest of them by clicking the link below.
5. Visa Inc. (NYSE:V)
Fisher Asset Management’s Stake Value: $2.68 billion
Percentage of Fisher Asset Management’s 13F Portfolio: 1.89%
Number of Hedge Fund Holders: 166
Visa Inc. (NYSE:V) is an American multinational financial services corporation that facilitates electronic funds transfers throughout the world. As of Q2 2022, Fisher Asset Management owned about 13.6 million Visa Inc. shares, worth $2.68 billion, representing 1.89% of the value of the fund’s 13F securities.
Earlier this July, Mizuho analyst Dan Dolev raised the price target on Visa Inc. to $220 from $215 and kept a ‘Neutral’ rating on the shares of the company. According to Dolev, U.S. debit growth was stronger at Visa Inc. in Q2, which led to a divergence in growth in favor of the company.
Among the hedge funds tracked by Insider Monkey, Chris Hohn’s TCI Fund Management is the leading position holder in Visa Inc., with almost 20 million shares worth around $4 billion. Overall, Visa Inc. was found in 166 hedge funds’ portfolios at the end of Q2 2022, compared to 159 funds in the prior quarter.
Here is what Polen Global Growth Fund had to say about Visa Inc. in its Q1 2022 investor letter:
“We added to both Visa and Mastercard during the final quarters of 2021, based on the belief that both businesses were trading at attractive prices and poised to deliver, double-digit returns over the next three to five years. Cross-border transactions–a highly profitable business segment for both companies–represent roughly 10% of Visa and Mastercard’s volumes and 25% of their gross revenues, so lockdowns have severely impacted this segment due to stifled travel. While it was impossible to know when people would begin traveling again, we accepted this reality with the belief that travel would eventually return. Both companies have commented that as soon as a country or geography reopens, cross-border volumes reignite, amplifying each business’s growth and profitability. We think these near- term headwinds have created an attractive long-term investment opportunity.”
4. Alphabet Inc. (NASDAQ:GOOG)
Fisher Asset Management’s Stake Value: $4.56 billion
Percentage of Fisher Asset Management’s 13F Portfolio: 3.22%
Number of Hedge Fund Holders: 153 (GOOG), 191 (GOOGL)
Alphabet Inc. is an American multinational technology conglomerate holding company that operates as the parent company of leading technology brands like Google and YouTube, among other notable names. A large position in Alphabet’s class A shares accounts for about 3.22% of Fisher Asset Management’s portfolio, with the hedge fund owning a $4.56 billion stake in the shares.
On August 3, Tigress Financial analyst Ivan Feinseth raised the price target on Alphabet Inc. to $186 from $183 and maintained a ‘Strong Buy’ rating on the shares, citing his view that the tech giant’s recently reported Q2 results highlight the resiliency of its core business in Cloud and Search. The analyst also states that Alphabet’s ongoing investment in Artificial Intelligence will further drive “increasingly focused and helpful experiences for users and businesses.”
Alphabet Inc.’s class C shares were held by 153 hedge funds at the end of the second quarter of 2022, while its class A shares were owned by 191. Among the hedge funds being tracked by Insider Monkey, London-based investment firm TCI Fund Management is a leading shareholder in Alphabet Inc., with 2.3 million class C shares worth more than $6.6 billion.
Here is what Arch Capital had to say about Alphabet Inc. in its Q2 2022 investor letter:
“In May we decided to buy Alphabet (parent company of Google, YouTube, and Android). Our thesis was simple. Alphabet has billions of locked-in users around the globe with businesses like Search, Maps, and YouTube that should grow in-line or faster than worldwide GDP. With all the cash these businesses generate, management is able to reinvest in Google Cloud, Other Bets projects like Waymo, and return cash to shareholders via share repurchases. At an enterprise value-to-free cash flow (EV/FCF) of around 20 at the time of our purchase, we believe this sets up shareholders for low risk 15%+ returns over the next five years.”
3. Amazon.com, Inc. (NASDAQ:AMZN)
Fisher Asset Management’s Stake Value: $5.16 billion
Percentage of Fisher Asset Management’s 13F Portfolio: 3.65%
Number of Hedge Fund Holders: 252
Fisher Asset Management acquired a position in Amazon.com, Inc., the largest e-commerce company in the world and one of the Big Five tech companies, in the first quarter of 2011. The hedge fund raised its Amazon.com, Inc. stake by a staggering 1,959% in Q2, holding 48.6 million shares worth $5.16 billion, representing 3.65% of the fund’s total 13F securities.
Bernstein analyst Mark Shmulik maintained an ‘Outperform’ rating and a price target of $160 on Amazon.com, Inc. shares on August 24. The analyst believes things “are looking up” in a challenging macro environment as “we move past tougher compares” and that the e-commerce giant remains well positioned to retake its share in the second half of 2022. Shmulik states that he is “encouraged” by the company’s progress in clearing up its missteps, and that progress on OI margins will be the key catalyst for outperformance in the second half of the year.
According to Insider Monkey’s Q2 data, 252 hedge funds were bullish on Amazon.com, Inc. on June 30, compared to 271 funds in the previous quarter. Skye Global Management is a prominent position holder in the company, with 15.4 million shares worth $1.6 billion.
Here is what Vulcan Value Partners specifically said about Amazon.com, Inc. in its Q2 2022 investor letter:
“Amazon.com, Inc. (NASDAQ:AMZN) has three components to its business model: online retail, cloud-based Amazon Web Services (AWS), and online advertising. We believe that the stock price has declined primarily due to its disappointing online retail results. Retail was extremely successful during COVID, and Amazon spent immensely to protect the consumer experience including buying extra inventory, buying inventory ahead of time, securing alternate shipping routes and adding extra warehouse space. We believe this long-term behavior has been successful for Amazon as customer retention and engagement remain at high levels. Post-COVID, the company is in the process of rightsizing its cost structure, and it is facing a tough period of comparisons. The retail segment is the smallest contributor to our overall value. The majority of the company’s value is in AWS, which we believe is one of the best businesses in the world. AWS’ revenue is expected to be approximately $80 billion this year, which is nearly double the amount in 2020. The company’s online advertising has turned into an attractive business that did not exist 15 years ago, and we estimate its revenue to be around $40 billion this year.”
2. Microsoft Corporation (NASDAQ:MSFT)
Fisher Asset Management’s Stake Value: $7.37 billion
Percentage of Fisher Asset Management’s 13F Portfolio: 5.21%
Number of Hedge Fund Holders: 258
Microsoft Corporation is one of the largest cloud infrastructure services providers and a software giant that provides computer software and electronics. On July 26, the company reported that its revenue grew 12.38% year-over-year to come in at $51.9 billion while its net income was $72.7 billion, up 19% on a year-over-year basis. Ken Fisher’s hedge fund currently owns 28.7 million shares of Microsoft Corporation, valued at over $7.37 billion. The company represented 5.21% of the fund’s portfolio weighting.
On August 11, Guggenheim analyst John DiFucci initiated coverage of Microsoft Corporation with a ‘Neutral’ rating and a $292 price target. According to DiFucci, the tech firm could grow revenue and free cash flow in the mid-teens on average in the future on account of the consensus numbers in Azure and Office Commercial 365. On the other hand, he continues to see declines in Windows that he believes are still “not fully reflected in consensus estimates,” stating that he sees a balanced risk/reward at current levels.
At the close of Q2 2022, 258 hedge funds held stakes in Microsoft Corporation worth $56 billion, compared to 259 hedge funds in the previous quarter with stakes worth $65.6 billion. Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital held one of the largest positions in the tech giant in Q2, with a stake valued at over $4.6 billion.
Carillon Tower Advisers mentioned Microsoft Corporation in its Q1 2022 investor letter. Here is what the firm had to say:
“Stock selection contributed the most while sector allocation was also positive. An underweight to communication services and an overweight to energy helped performance, while an underweight to consumer staples and an overweight to materials detracted. Stock selection was strong within healthcare and materials but was weak within information technology and industrials. Microsoft (NASDAQ:MSFT) reported positive results driven by personal computing strength, but analysts were especially positive on its growth outlook for its Azure cloud-computing services.”
1. Apple Inc. (NASDAQ:AAPL)
Fisher Asset Management’s Stake Value: $8.97 billion
Percentage of Fisher Asset Management’s 13F Portfolio: 6.35%
Number of Hedge Fund Holders: 128
Apple Inc. is an American multinational technology company that specializes in consumer electronics, software and online services. Ken Fisher added Apple Inc. to his portfolio back in Q4 2010. As of the second quarter of 2022, his hedge fund holds 65.7 million shares of Apple Inc., worth $8.97 billion, making up 6.35% of his total portfolio value.
On August 19, KeyBanc analyst Brandon Nispel raised his price target on Apple Inc. to $185 from $177 and maintained an ‘Overweight’ rating on the shares. The analyst recommends owning Apple stock and raised the price target “based on strong trends.” According to Nispel, July ended up being the strongest sequential growth month of the company’s fiscal Q4, which, based on his remarks, appears to be off to a strong start.
Apple Inc. issued its quarterly earnings report for its fiscal third quarter of 2022 on July 28. According to the report, the tech firm had EPS of $1.20, beating market estimates by $0.04. Additionally, the company’s revenue for the quarter came in at just under $83 billion.
According to Insider Monkey’s data, 130 hedge funds were bullish on Apple Inc. at the end of Q2, down from 132 funds in the prior quarter. Warren Buffett’s Berkshire Hathaway was Apple Inc.’s biggest shareholder, owning 895 million shares worth approximately $122 billion.
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This article is originally published at Insider Monkey.
