In this piece, we will analyze which of the top 20 brands in the world are also great investments. For more brands, head on over to 5 Most Valuable Brands That Are Great Investments Now.
Cover even a basic course in finance and you are likely to come across several different ways to value a company. These range from simple ratios to complex methods such as discounted cash flow (DCF) analysis which involves projecting a firm’s cash flows into the future and then discounting them back to gain a sense of its fair value. Another popular, and easy, method is market capitalization, which simply multiplies the firm’s outstanding shares with its share price.
However, capturing the non-intrinsic value of a company – one that is determined by customer goodwill, corporate practices, and brand strength – is more difficult simply due to the qualitative nature of these factors. Calculating this value becomes crucial at the time of mergers or acquisitions, as the acquiring firm often ends up paying a premium for the target if the latter is a strong brand. This premium is called synergy during the acquisition phase, and its value is reflected as goodwill on the balance sheet of the acquiring entity. The balance sheet adjustment has to be made because the price paid for a firm is often higher than the value of its assets, and an adjustment is necessary to balance the ‘balance’ sheet.
Today’s piece will look at some of the most valuable brands in the world, and determine if they are also popular with hedge funds. The top picks are Meta Platforms, Inc. (NASDAQ:META), Microsoft Corporation (NASDAQ:MSFT), and Amazon.com, Inc. (NASDAQ:AMZN).
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Our Methodology
We took a look at Kantar’s BrandZ Most Valuable Brands report for 2022, which is the latest of its kind, and then checked which of these firms are among the top 20 in terms of hedge fund investments from our study of 920 funds for Q3 2022.
It turns out that out of the 20 most valuable brands, 17 are great investments now, according to the smart money. That’s why in this article we list 17 of these 20 most valuable brands because these 17 companies are among the top stock picks of elite hedge funds.
Which of the 20 Most Valuable Brands in the World Are Great Investments Now?
17. Bank of America Corporation (NYSE:BAC)
Kantar’s BrandZ Ranking: 69
Kantar’s BrandZ Value: $30.8 billion
Q3 2022 Hedge Fund Stakeholders: 97
The Bank of America Corporation (NYSE:BAC) is an American bank that is one of the largest in the world in terms of total assets. It provides several services such as asset management, investment advice, and different accounts.
The Bank of America Corporation (NYSE:BAC) has a $30.8 billion in brand value according to Kantar, placing it at a respectable 69. Insider Monkey scanned 920 hedge fund portfolios for their Q3 2022 investments to discover that 97 had bought its shares.
The Bank of America Corporation (NYSE:BAC)’s largest shareholder is Warren Buffett’s Berkshire Hathaway. It owns one billion shares that are worth $30 billion.
16. T-Mobile US, Inc. (NASDAQ:TMUS)
Kantar’s BrandZ Ranking: 32
Kantar’s BrandZ Value: $64.6 billion
Q3 2022 Hedge Fund Stakeholders: 100
T-Mobile US, Inc. (NASDAQ:TMUS) is an American telecommunications company that provides internet, telephonic packages, and other services. It is headquartered in Bellevue, Washington.
Insider Monkey’s Q3 2022 survey outlined that 100 hedge funds had invested in T-Mobile US, Inc. (NASDAQ:TMUS). The firm ranks 32 on Kantar’s list with a brand value of $64.6 billion.
T-Mobile US, Inc. (NASDAQ:TMUS)’s largest investor is Warren Buffett’s Berkshire Hathaway which owns 5.2 million shares that are worth $703 million.
15. Alibaba Group Holding Limited (NYSE:BABA)
Kantar’s BrandZ Ranking: 9
Kantar’s BrandZ Value: $169.9 billion
Q3 2022 Hedge Fund Stakeholders: 105
Alibaba Group Holding Limited (NYSE:BABA) is a Chinese holding company that is best known for its online retail platform that connects businesses with other businesses and the everyday consumer. It also has other divisions such as cloud computing.
Alibaba Group Holding Limited (NYSE:BABA) is one of the most valuable brands in the world, as it ranks nine on Kantar’s list. According to our third quarter of 2022 survey, 105 hedge funds out of 920 had invested in the company.
David Blood and Al Gore’s Generation Investment Management is Alibaba Group Holding Limited (NYSE:BABA)’s largest shareholder. It owns 4.5 million shares that are worth $360 million.
14. UnitedHealth Group Incorporated (NYSE:UNH)
Kantar’s BrandZ Ranking: 75
Kantar’s BrandZ Value: $28.3 billion
Q3 2022 Hedge Fund Stakeholders: 110
UnitedHealth Group Incorporated (NYSE:UNH) is a healthcare company that provides benefit plans, a care provider network, and pharmaceutical and software products. It is based in Minnetonka, Minnesota.
By the end of this year’s third quarter, 110 out of the 920 hedge funds profiled by Insider Monkey had invested in UnitedHealth Group Incorporated (NYSE:UNH).
UnitedHealth Group Incorporated (NYSE:UNH) largest hedge fund investor in our database is Rajiv Jain’s GQG Partners which owns 3.2 million shares that are worth $1.6 billion.
13. JPMorgan Chase & Co. (NYSE:JPM)
Kantar’s BrandZ Ranking: 59
Kantar’s BrandZ Value: $57.4 billion
Q3 2022 Hedge Fund Stakeholders: 110
JPMorgan Chase & Co. (NYSE:JPM) is an American banking company that is one of the oldest of its kind in the world since it was set up in 1799. The firm provides consumer, corporate, investment, commercial, and community banking services.
110 out of the 920 hedge funds polled by Insider Monkey for their Q3 2022 holdings had held JPMorgan Chase & Co. (NYSE:JPM)’s shares.
JPMorgan Chase & Co. (NYSE:JPM)’s largest investor is Ken Fisher’s Fisher Asset Management which owns 7.8 million shares that are worth $820 million.
12. The Walt Disney Company (NYSE:DIS)
Kantar’s BrandZ Ranking: 38
Kantar’s BrandZ Value: $60.5 billion
Q3 2022 Hedge Fund Stakeholders: 112
The Walt Disney Company (NYSE:DIS) is an iconic brand that is most well known for its thematic parks that are based on the popular cartoon character Mickey Mouse.
The Walt Disney Company (NYSE:DIS)’s brand value is apparent from the fact that it is a household name. It ranks 38 on Kantar’s list, with 112 of the 920 hedge funds polled by Insider Monkey for their September quarter of 2022 investments having invested in the firm.
Ken Fisher’s Fisher Asset Management is The Walt Disney Company (NYSE:DIS)’s largest hedge fund shareholder. It owns 5.1 million shares that are worth $484 million.
11. Netflix, Inc. (NASDAQ:NFLX)
Kantar’s BrandZ Ranking: 30
Kantar’s BrandZ Value: $73.5 billion
Q3 2022 Hedge Fund Stakeholders: 115
Netflix, Inc. (NASDAQ:NFLX) is an online video and entertainment provider which operates its own streaming platform and produces its own content as well. It is headquartered in Los Gatos, California, the United States.
By the end of this year’s third quarter, 115 of the 920 hedge funds part of Insider Monkey’s survey had held a stake in Netflix, Inc. (NASDAQ:NFLX).
Netflix, Inc. (NASDAQ:NFLX)’s largest shareholder is Ken Fisher’s Fisher Asset Management which owns 6.6 million shares that are worth $1.5 billion.
10. Salesforce, Inc. (NYSE:CRM)
Kantar’s BrandZ Ranking: 43
Kantar’s BrandZ Value: $54.9 billion
Q3 2022 Hedge Fund Stakeholders: 117
Salesforce, Inc. (NYSE:CRM) is an American firm that provides customer engagement platforms that allow companies to run marketing campaigns, manage customer support, and generate analytical data.
Insider Monkey studied 920 hedge fund portfolios for their September quarter of 2022 investments to find out that 117 had bought Salesforce, Inc. (NYSE:CRM)’s shares. It ranks at 43 on Kantar’s list, with a $54.9 billion brand value.
Ken Fisher’s Fisher Asset Management is Salesforce, Inc. (NYSE:CRM)’s largest hedge fund investor. It owns 12.7 million shares that are worth $1.8 billion.
9. PayPal Holdings, Inc. (NASDAQ:PYPL)
Kantar’s BrandZ Ranking: 28
Kantar’s BrandZ Value: $78.7 billion
Q3 2022 Hedge Fund Stakeholders: 126
PayPal Holdings, Inc. (NASDAQ:PYPL) is a financial services firm that lets users make and receive payments through a non banking medium. The firm is based in San Jose, California.
PayPal Holdings, Inc. (NASDAQ:PYPL) ranks at 28 on Kantar’s list, and 126 of the 920 hedge funds polled by Insider Monkey during this year’s third quarter had invested in it.
PayPal Holdings, Inc. (NASDAQ:PYPL)’s largest investor is Ken Fisher’s Fisher Asset Management which owns 17.6 million shares that are worth $1.5 billion.
8. Apple Inc. (NASDAQ:AAPL)
Kantar’s BrandZ Ranking: 1
Kantar’s BrandZ Value: $947 billion
Q3 2022 Hedge Fund Stakeholders: 140
Apple Inc. (NASDAQ:AAPL) is an American consumer electronics company that also provides a diverse software services ecosystem.
Apple Inc. (NASDAQ:AAPL) is the world’s most valuable brand according to Kantar, with a value of $947 billion. By Q3 of 2022 end, 140 of the 920 hedge funds part of our study had bought its shares.
Warren Buffett’s Berkshire Hathaway is Apple Inc. (NASDAQ:AAPL)’s largest investor. It owns 894 million shares worth a whopping $123 billion.
7. Uber Technologies, Inc. (NYSE:UBER)
Kantar’s BrandZ Ranking: 79
Kantar’s BrandZ Value: $26.8 billion
Q3 2022 Hedge Fund Stakeholders: 142
Uber Technologies, Inc. (NYSE:UBER) is an American firm that connects riders with those looking for a ride. It also provides package and food delivery services, and is expanding its services to include electric aircraft.
142 of the 920 hedge funds polled by Insider Monkey during this year’s third quarter had invested in Uber Technologies, Inc. (NYSE:UBER). It has a brand value of $26.8 billion according to Kantar.
Uber Technologies, Inc. (NYSE:UBER)’s largest investor is Ken Fisher’s Fisher Asset Management which owns 19.2 million shares that are worth $510 million.
6. Mastercard Incorporated (NYSE:MA)
Kantar’s BrandZ Ranking: 12
Kantar’s BrandZ Value: $117.3 billion
Q3 2022 Hedge Fund Stakeholders: 146
Mastercard Incorporated (NYSE:MA) is an American transactions processing firm that enables customers to digitally make payments. It also provides analytics services to its corporate customers.
By the end of Q3 2022, 146 of the 920 hedge funds polled by Insider Monkey had invested in Mastercard Incorporated (NYSE:MA). The firm ranks 12th on Kantar’s most valuable brands list.
Charles Akre’s Akre Capital Management is Mastercard Incorporated (NYSE:MA)’s largest investor through a $1.6 billion stake that comes via 5.8 million shares.
Click to continue reading and see 5 Most Valuable Brands That Are Great Investments Now.
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Disclosure: None. Which of the 20 Most Valuable Brands in the World Are Great Investments Now?. is originally published on Insider Monkey.