We recently published a list of Ken Fisher Stock Portfolio: Top 10 Stock Picks. In this article, we are going to take a look at where mazon.com, Inc. (NASDAQ:AMZN) stands against other stock picks from Ken Fisher’s portfolio.
Ken Fisher is an American billionaire investment analyst and founder of Fisher Investments, a renowned money management firm in the financial world with over 170,000 clients globally and assets of $299 billion as of the end of 2024.
READ ALSO: 12 Best Long-Term Stocks to Buy According to Ken Fisher and Billionaire Ken Fisher’s Top 10 High Growth Stock Picks.
Ken Fisher’s Investment Philosophy and Strategies
He founded Fisher Investments in 1979 and managed to grow it to big proportions through aggressive advertisements. It is one of the most advertised investment advisors in the country, with the company reaching out directly to clients and prospects to promote its products.
Another factor that has significantly contributed to the firm’s growth is that it targets high net worth individuals for investments. The company also has a positive reputation in the market for retaining portfolio management talent, which is evident from its low turnover compared to other companies in the industry, and has helped the firm have a continuity of policies and strategies.
The firm’s investment philosophy is based on Fisher’s fundamental belief in capitalism and free markets, where demand and supply determine the prices of securities. It also has a firm reliance on market research and metrics such as price-to-sales ratio to find undervalued growth stocks.
Fisher stepped down as CEO in 2016, but still has an active role to play in the firm as its Executive Chairman and Co-Chief Investment Officer. Moreover, his influence on financial markets extends well beyond asset management as he is an author of 11 books, four of which became best-sellers. The billionaire has also published many papers and is a columnist for several notable newspapers and magazines.
Recent Developments
In January this year, Fisher Investments announced that Advent International, a wholly owned subsidiary of the Abu Dhabi Investment Authority, had completed a $3 billion minority stock investment in the firm. The transaction values Fisher Investments at $12.75 billion. The strategic partnership is part of Ken Fisher’s long-term estate planning, and will ensure that the firm maintains its private independence and commitment to exceptional client service.
While Trump’s tariffs have sent shockwaves through the markets, Fisher Investments is confident about the long-term outlook. Here is what the firm stated on its weekly website series, This Week in Review:
“While more downside is possible, we think the biggest risk for investors is making any knee jerk decisions amid fast moving tariff news. Market volatility can feel unsettling. However, selling stocks during a downturn can lead to missing out on gains if the market rebounds, which we believe will happen this year.”
Methodology
We scanned Fisher Asset Management’s 13F portfolio, as of December 31, 2024. From there, we picked the top 10 stocks according to their stake value and ranked them in ascending order. ETFs have been excluded from our list.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A customer entering an internet retail store, illustrating the convenience of online shopping.
Amazon.com, Inc. (NASDAQ:AMZN)
Stake Value as of Q4 2024: $9,907,594,875
Amazon.com, Inc. (NASDAQ:AMZN) is an American multinational technology company that engages in e-commerce, online advertising, cloud computing, artificial intelligence, and digital streaming.
On February 6, the company declared financial results for the fourth quarter of fiscal 2024. It reported net sales of $187.8 billion, increasing 10% from last year, driven by robust sales growth in the North America and International segments. AWS segment sales were also up 19% year-over-year to $28.8 billion.
Amazon.com, Inc. (NASDAQ:AMZN)’s operating income increased to $21.2 billion, improving substantially from $13.2 billion during the prior year’s period. Net income jumped 88% year-over-year to $20 billion. Diluted EPS was logged at $1.86, smashing expectations of $1.49 per share.
This was the first instance of Amazon.com, Inc. (NASDAQ:AMZN) dethroning Walmart in quarterly revenue. The strong show in Q4 has led to a bullish sentiment around the company. Wall Street analysts have a consensus Strong Buy rating for the stock, with an average share price upside potential of 34%.
According to Insider Monkey’s database, Amazon.com, Inc. (NASDAQ:AMZN) is the most owned stock by hedge funds. As of Q4 2024, 339 firms held a stake in the company, up from 286 at the end of the third quarter. Below is an excerpt from RiverPark Large Growth Fund’s Q4 2024 investor letter:
“With its ability to continue its market share gains in its three leading businesses (e-commerce, web services and online advertising), plus a multi-year operating margin expansion opportunity (from improved e-commerce margins and greater contribution from the faster growing, higher margin AWS and advertising segments), we believe Amazon remains one of the best-positioned global growth companies in the world.”
Amazon.com, Inc. (NASDAQ:AMZN) is among the top picks from the Ken Fisher stock portfolio, with a stake value of approximately $9.9 billion.
Overall, AMZN ranks 4th on our list of stock picks from Ken Fisher’s portfolio. While we acknowledge the potential of technology companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AMZN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
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