David Einhorn of Greenlight Capital manages a 13F portfolio that was worth more than $2.8 billion at the end of the fourth quarter of 2025. Einhorn is a long-short value investor renowned for his forensic approach to financial analysis. Since launching his firm in 1996, he has specialized in identifying deep-value opportunities while simultaneously executing high-profile short positions against companies with questionable accounting or flawed business models. Einhorn gained legendary status for his prescient 2008 short call on Lehman Brothers. In his latest investor letter, Einhorn has signaled a pivot toward extreme caution, prioritizing “capital preservation” despite a surging stock market. While the S&P 500 has staged a rebound to erase losses since the onset of the US-Iran conflict, Einhorn warned that market participants are dangerously complacent regarding geopolitical and macroeconomic risks.
READ MORE: 15 Best Stocks to Buy According to Billionaire Ray Dalio.
In the letter, Einhorn criticized the current investment climate, suggesting that even those who claim to be wary are not truly de-risking. He observed that investors are operating with a “Sammy Hagar inspired mentality: one foot on the brake and one on the gas.” According to Einhorn, this behavior stems from a fear of being left behind, as “nobody wants to miss the V- or even the checkmark-shaped recovery.” This optimism persists even though recent diplomatic efforts have faltered. While the market rallied on the hope of a breakthrough, Einhorn remains skeptical of the current valuations, noting that there is “so little downside priced in” to current equity levels. Despite his defensive posture, Greenlight Capital outperformed the broader market in the first quarter of 2026.
READ MORE: 10 Best Stocks to Buy According to Billionaire Paul Tudor Jones.
Our Methodology
To compile our list of the best stocks to buy according to billionaire David Einhorn, we reviewed the latest 13F filings of Greenlight Capital. Next, we focused on the top 10 stocks in his portfolio. Data for the hedge fund sentiment surrounding each stock was taken from Insider Monkey’s Q4 2025 database of 1041 elite hedge funds.
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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
David Einhorn Stock Portfolio: Top Stock Picks
10. Teva Pharmaceutical Industries Limited (NYSE:TEVA)
Greenlight Capital’s Stake: $95 Million
Teva Pharmaceutical Industries Limited (NYSE:TEVA) has featured in the 13F portfolio of Greenlight Capital since the fourth quarter of 2023. Back then, this position comprised 268,000 shares. In the coming quarters, the fund steadily loaded up on the stock, increasing the stake by 21%, 44%, and 21%. A massive buying activity was registered in the second quarter of 2025 when the fund increased this holding by more than 550%. Filings for the fourth quarter of 2025 show that the fund owns just over 3 million shares in the pharma firm, down close to 20% compared to filings for the third quarter of 2025.
Teva Pharmaceutical Industries Limited (NYSE:TEVA) has been on the radar of elite hedge funds as the firm makes a strategic shift toward innovative, high-margin brand drugs. The best example of this is AUSTEDO, a treatment for tardive dyskinesia whose sales grew significantly in 2025 and are projected to hit $2.5 billion by 2027. Another catalyst for the shares is that in the fourth quarter of 2025, for the first time, Teva’s innovative brands – AUSTEDO, AJOVY, and UZEDY – collectively delivered over $1 billion in a single quarter. Pipeline drugs look promising as well. Teva is developing a potential blockbuster for inflammatory bowel disease. Recent data positions it as a best-in-class therapy. Institutional interest peaked after a $400 million funding agreement with Blackstone to accelerate its development.
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