Billionaire investors are among the most influential market drivers. That’s especially rue in the case of those who have control over massive investment entities. Retail traders only constitute about 20-25% of the total trading volume in the market, so it makes sense to follow these billionaire investors into their big bets. These individuals have unmatched research capacity, and following in their footsteps could help you generate market-beating returns, or at least gain some perspective on certain companies.
That said, none of these billionaires have a crystal ball. So, I think studying these picks and discussing their recent performance is a smarter idea than blindly following their trades. That is what I’ll be doing today with the following stocks that the top billionaires are betting big on in 2024.
Occidental Petroleum (OXY)
Occidental Petroleum (NYSE:OXY) is an integrated energy company engaged in oil and gas exploration and production. Despite a challenging start to the year due to a third-party outage in the Eastern Gulf of Mexico, Occidental delivered robust production results in Q1 2024, nearly offsetting the impact of this headwind. I’m particularly impressed by the company’s strong new well performance in the Permian Basin and the Rockies, which helped them exceed the midpoint of their Permian production guidance.
The company also found success in secondary benches in the Delaware Basin. Occidental is achieving excellent performance in its recent earnings reports, mirroring its record-setting 2023 program average.
Warren Buffett’s initial investment in Occidental took place back in 2019, and he has consistently added to his position over the past few years. Since then, Buffett has made 12 purchases of OXY, at an average price of $51.70, for a total of 274.21 million shares.
He now holds almost 29% of all outstanding shares, and he most recently expanded his investment in Occidental Petroleum Corp by acquiring an additional 2,947,611 shares, as reported on June 17. He has bought the stock for nine days straight as of writing.
Chevron (CVX)
Chevron (NYSE:CVX) delivered another strong quarter with adjusted earnings of $5.4 billion and return on capital employed (ROCE) above 12% for the 9th straight quarter. I believe Chevron is poised to benefit from the long-term mega trend of rising global energy demand. With its scale and low-cost assets, Chevron looks well-positioned in this current environment.
It’s no surprise Chevron is a classic Warren Buffett play. But Chevron is attracting big bets from all types of billionaire investors lately. Notably, Ken Fisher increased his Chevron position by a whopping 108% this year.
Hess (NYSE:HES) shareholders also approved merging with Chevron.
I think this merger will create a true energy powerhouse, powering even better returns moving forward. And even on a backward-looking basis, there’s a lot to like. This past quarter, Chevron grew production 10% year-over-year and continues to invest in renewable fuels and hydrogen. For those looking for a little big of income, Chevron’s 4.25% dividend yield is also solid.
Alibaba (BABA)
Alibaba (NYSE:BABA) operates e-commerce, cloud computing, and digital media platforms in China. The tech giant’s latest earnings reveal a company on the cusp of a major turnaround. I believe the stock is poised for significant upside as Alibaba capitalizes on the explosive growth in China’s AI and cloud markets.
Billionaire David Tepper has been making a massive bet on BABA stock, scooping up Alibaba shares at a discount. The stock now comprises a whopping 12.2% of his Appaloosa fund. In Q1 alone, he boosted his stake by nearly 159% to over $814 million.
Alibaba’s core commerce business has returned to double-digit growth, with Taobao and Tmall GMV surging. International commerce revenue rose 45% as the company expanded its global footprint. However, the real gem is Alibaba’s AI and cloud business, where revenue soared at a triple-digit rate. As China pours billions into the tech sector, Alibaba is perfectly-positioned to ride this mega trend to new heights.
The stock is still trading at a steep discount to its highs, so Tepper’s big bet could handsomely pay off in the years ahead.
On the date of publication, Omor Ibne Ehsan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.