Invest Like A Billionaire

I’ve seen a lot of articles written about what the billionaires are buying, which leaves the question, should we all be following their lead? The short answer, while not one people would love to hear, maybe.

Ken Griffin, Israel Englander, and even the Oracle of Omaha himself have been buying during this recent stock market plunge. From healthcare stocks, to dividend payers, tech and energy, they have been spending millions of dollars on building out positions.

Ken Griffin apparently has been buying stocks like Home Depot (HD), Bank of America (BAC), and even shares of Broadcom (AVGO) and Western Digital (WDC). Warren Buffett made headlines when he increased his stake in Occidental Petroleum (OXY) in order to capitalize on the energy industry heating up like it has been.

If you notice there is a common theme among some of these picks, they’re all seemingly well tailored to this kind of market. Blue-chip names with long track records and that pay some kind of dividend. These positions have stood the tests of time and are in the front running for leaders of their respective industries.

So what does the average investor do with this information? Well, instead of going all in on the names you see above, I want to challenge you to not only consider buying stocks that billionaires are buying, but to consider the themes that underlie their investment thesis.

Try to walk in the shoes of the billionaire investor and understand why they are making the moves they are making. This will not only get you to think like them, but will also teach you how to take what is going on in the world and apply that to your own investment thesis.

Take the oil and gas play made by Buffett. As we look around, this area of the market has given back some ground recently, but for the past year this industry has been on fire, no pun intended. Looking forward, it could be a little risky to invest at the top, but that’s where some of these themes could come into play.

The banks tend to do a little better than most in a higher interest rate environment, which it appears we are going to be entering into. Not only that, most of them always provide you with much needed income so you can generate extra income.

Unfortunately for us, our position sizes aren’t nearly as large as these titans of the industry, so our dividend payments won’t be in the millions sadly, but should that stop us? Absolutely not.

So, for this issue, we aren’t going to run any searches, instead I want to challenge the reader to come up with their own investing themes to see what you come up with!

The first place to start is under the Magnifi Insights & Themes page. This will grant you exposure to all the themes Magnifi currently has to offer.

Not only do I want you to explore your own investing ideas here, but I also want you to share with us the themes you come up with! That’s right, share. Give the rest of the readers some of the insight you’re looking at. The goal here is for all of us to help one another see things in the market someone else may not be seeing.

If you’re interested in sharing or if you have questions or want me to explore a theme or topic in more detail in future newsletters, just email discovery@magnifi.com, and we will answer all your questions! Like my middle school teachers always said, if one person has a question, chances are others had the same question as well. Let’s help each learn and grow!

Today’s feature: Investment Themes