Billionaire Ken Fisher’s Top 5 Stock Picks

In this article, we will take a look at billionaire Ken Fisher’s top 5 stock picks. If you want to see more stocks in this selection, go to Billionaire Ken Fisher’s Top 10 Stock Picks.

5. ASML Holding N.V. (NASDAQ:ASML)

Fisher Asset Management’s Holdings: $3,217,200,000
Percentage of Fisher Asset Management’s Portfolio: 1.94%

ASML Holding N.V. (NASDAQ:ASML)’s dominance in the semiconductor-making equipment market, particularly in extreme ultraviolet lithography, positions it to become a $1 trillion company. Despite facing weak demand, the company has achieved a 13% increase in sales in its most recent quarter, with an annualized growth rate of 15% required to reach a $1 trillion valuation by 2023.

In the first quarter of 2023, Fisher Asset Management bought 2,921 shares of ASML Holding N.V. (NASDAQ:ASML) stock, boosting its stake by about 1%. At the end of the quarter, the hedge fund held more than 4.73 million shares of ASML, worth about $3.22 billion.

Here is what ClearBridge Investments said about ASML Holding N.V. (NASDAQ:ASML) in its Q4 2022 investor letter:

“ASML Holding N.V. (NASDAQ:ASML) makes semiconductor chip manufacturing equipment and is a leading supplier of lithography systems to the semiconductor industry. We expect ASML to grow above expectations as its innovative EUV technology is deployed and industry capacity expands. This in turn should lead to margin expansion and earnings leverage. In addition to more visible growth and profitability drivers relative to Intel, ASML also has a stronger balance sheet and higher returns on capital. As a semiconductor capital equipment provider, ASML directly improves the energy efficiency of semiconductor manufacturing, and governance and diversity initiatives at ASML are best in class.”

4. Amazon.com, Inc. (NASDAQ:AMZN)

Fisher Asset Management’s Holdings: $4,272,714,000
Percentage of Fisher Asset Management’s Portfolio: 2.58%

Amazon.com, Inc. (NASDAQ:AMZN) is a retail giant that sells consumer products and subscriptions online and in physical stores worldwide.

Amazon.com, Inc. (NASDAQ:AMZN) has featured on Fisher Asset Management’s portfolio since the third quarter of 2015.

In its investor letter for Q1 2023, Diamond Hill Capital provided a comment regarding Amazon.com, Inc. (NASDAQ:AMZN):

“We did have several strong performing stocks this quarter. Our top contributors to return included NVR, Amazon.com, Inc. (NASDAQ:AMZN), Alphabet, Microsoft and Booking Holdings, all of which posted double-digit gains.

Global online retailer Amazon reported mixed quarterly results as improvement in retail profitability was offset by weakening demand at AWS (Amazon Web Services). Management responded with another round of layoffs (focused in high-margin areas like AWS and advertising) that will help protect margins until cloud and ad demand improves. We believe Amazon’s competitive advantages will continue to grow and that the business has the potential to grow faster than the overall economy in the coming years.”

3. Alphabet Inc. (NASDAQ:GOOG)

Fisher Asset Management’s Holdings: $4,371,802,000
Percentage of Fisher Asset Management’s Portfolio: 2.64%

Alphabet Inc. (NASDAQ:GOOG) is a global company with various products and platforms in Google Services, Google Cloud, and Other Bets.

On April 26, Deutsche Bank’s Benjamin Black reiterated a ‘Buy’ rating on Alphabet Inc. (NASDAQ:GOOG) shares and raised the price target from $120 to $125 after the company reported “solid” Q1 results.

Ken Fisher’s Fisher Asset Management increased its position in the company to 42.15 million shares in the first quarter.

Here is what Diamond Hill Capital said about Alphabet Inc. (NASDAQ:GOOG) in its Q1 2023 investor letter:

“We did have several strong performing stocks this quarter. Our top contributors to return included NVR, Amazon, Alphabet Inc. (NASDAQ:GOOG), Microsoft and Booking Holdings, all of which posted double-digit gains. Shares of media and technology giant Alphabet outperformed as the company announced expense discipline while continuing to invest in its core products of Google Search, YouTube and Google Cloud.”

2. Microsoft Corporation (NASDAQ:MSFT)

Fisher Asset Management’s Holdings: $7,051,906,000
Percentage of Fisher Asset Management’s Portfolio: 4.27%

Microsoft Corporation (NASDAQ:MSFT) develops, licenses, and supports software, services, devices, and solutions worldwide. Deutsche Bank increased Microsoft’s price target to $340 from $310 and maintained a ‘Buy’ rating on the shares after the Q3 earnings report on April 26.

Billionaire Ken Fisher’s Fisher Asset Management has kept a stake in Microsoft Corporation (NASDAQ:MSFT) since Q4 2010.

Diamond Hill Capital made the following comment about Microsoft Corporation (NASDAQ:MSFT) in its Q1 2023 investor letter:

“We did have several strong performing stocks this quarter. Our top contributors to return included NVR, Amazon, Alphabet, Microsoft Corporation (NASDAQ:MSFT) and Booking Holdings, all of which posted double-digit gains.

Shares of software and IT services provider Microsoft rallied as investors became less cautious about the potential for growth deceleration in Azure, its public cloud business, and more focused on opportunities in search after the company announced an investment in and long-term partnership with OpenAI, the company that developed ChatGPT. Microsoft’s net cash balance sheet also seemed to gain appreciation from investors who became more cautious about the economic cycle.”

1. Apple Inc. (NASDAQ:AAPL)

Fisher Asset Management’s Holdings: $8,632,250,000
Percentage of Fisher Asset Management’s Portfolio: 5.22%

Apple Inc. (NASDAQ:AAPL) is a global company that creates, produces, and sells various products including smartphones, personal computers, tablets, wearables, and accessories.

Canaccord analyst T. Michael Walkley maintained a ‘Buy’ rating on Apple Inc. (NASDAQ:AAPL)’s shares and raised the price target from $180 to $185 on May 5. In the first quarter of 2023, Fisher Asset Management held 52.35 million shares of Apple Inc. (NASDAQ:AAPL) worth over $8.63 billion, representing 5.22% of the firm’s total portfolio. The hedge fund decreased its stake in Apple Inc. (NASDAQ:AAPL) by 13% in the first quarter of 2023.

In its Q1 2023 investor letter, RiverPark Advisors shared a comment about Apple Inc. (NASDAQ:AAPL):

“Apple Inc. (NASDAQ:AAPL): Apple shares were our final top contributor for the quarter. While the company reported a rare quarterly earnings miss, investors had expected slower sales due to macro headwinds. Services continue to be a bright spot for the company with an all-time high of $21 billion in quarterly revenue, a 6% year-over-year increase, and management expects iPhone revenue growth to re-accelerate in 2Q. Operating Cash Flow was $34 billion for the quarter, and the company returned $23 billion to shareholders in the last three months, including $4 billion in dividends and $19 billion in share repurchases.

With an installed base of 2 billion active devices and significant growth of the company’s recurring revenue Services segment (now 18% of revenue), we believe that Apple remains one of the most innovative, best-positioned and most profitable companies in the mobile technology industry.”

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