Billionaire Paul Singer’s Top 5 Stock Picks

3. Tesla (NASDAQ: TSLA)

Paul Singer’s hedge fund kept a big convertible debt position in Tesla during the third quarter, accounted for 6.31% of the overall portfolio. The convertible debt position can be exchanged for common stock in the issuing company. He has also hedged its position through Tesla Puts. Tesla is one of the fastest-growing electric vehicle company in the world. It has generated profits in the past six consecutive quarters and plans to deliver 1 million vehicles by 2022.

Last month we shared billionaire Chamath Palihapitiya’s Tesla views in an article. Here is an excerpt:

For Chamath Palihapitiya, Tesla is a distributed energy business and not a mere car company. “They are figuring out how to harness energy, how to store it, and then how to use it in a way to allow humans to be productive”. He also stated that the ‘big disruption’ that’s coming is to power utilities. “There are trillions of dollars of bonds, of CapEx, of value sitting inside the energy generation infrastructure of the world that is going to go upside down and when that goes pear-shaped, Tesla will double and triple again,” he said.

Palihapitaya marked that a person fighting against climate change could potentially be the world’s first ‘trillionaire‘ because delivering clean energy and allowing the world to be sustainable is an ‘incredibly’ important thing to do that will be rewarded by markets and individuals.

“I don’t understand why people are so focused on selling things that work… Let’s just say I owned a billion dollars of Tesla stock, if I sold it now, I’ll have a billion-dollar problem. What do I do with that money?” Palihapitiya pointed out that when things are working, people are paid to stay with certain people that know what they are doing. “This is a guy who has consistently been one of the most important entrepreneurs in the world and so why bet against him?… You get behind these people who have an incredibly strong character, who know what they’re doing, who aren’t going to bend short-term profits and we’re just going to drive the train for 10 or 20 years and make the world a better place”.