Billionaires Are Piling Into These Top Stocks. Should You Buy Them?
Following the stock picks of billionaire investors can be a great source of profitable investment ideas. These investors are interested in preserving and growing wealth, so they don't make an investment unless they see relatively low downside risk and a favorable probability of being right.But it's important to remember that even Warren Buffett doesn't have a perfect batting average. To be a successful investor, it's important to think for yourself and not blindly follow the advice of someone else, even if they have built a fortune in the stock market. That said, let's look at two top consumer brands that notable billionaires have been buying, and whether it makes sense to follow their lead.The world's leading footwear brand has seen its share price fall 50% from its previous peak. Nike (NYSE: NKE) brought in a new CEO -- longtime company veteran Elliott Hill -- to turn things around. Billionaire Bill Ackman clearly sees excellent return prospects from current share prices, as his firm, Pershing Square Capital Management, has been scooping up shares for the past three quarters. Pershing Square held more than 18 million shares at the end of the fourth quarter worth $1.4 billion.Continue reading
Following the stock picks of billionaire investors can be a great source of profitable investment ideas. These investors are interested in preserving and growing wealth, so they don't make an investment unless they see relatively low downside risk and a favorable probability of being right.
But it's important to remember that even Warren Buffett doesn't have a perfect batting average. To be a successful investor, it's important to think for yourself and not blindly follow the advice of someone else, even if they have built a fortune in the stock market. That said, let's look at two top consumer brands that notable billionaires have been buying, and whether it makes sense to follow their lead.
The world's leading footwear brand has seen its share price fall 50% from its previous peak. Nike (NYSE: NKE) brought in a new CEO -- longtime company veteran Elliott Hill -- to turn things around. Billionaire Bill Ackman clearly sees excellent return prospects from current share prices, as his firm, Pershing Square Capital Management, has been scooping up shares for the past three quarters. Pershing Square held more than 18 million shares at the end of the fourth quarter worth $1.4 billion.
