What the World’s Greatest Investors are Buying Now


What the World’s Greatest Investors are Buying Now

INVESTMENT ─ The current global economic environment is volatile and far from ideal. This is especially the case with the world’s largest economy, the US, announcing an unprecedented 9.1% year-on-year (YoY) Consumer Price Index (CPI) rate in June of this year, a worrying territory never been seen in four decades.

Thus, the US Central Bank, the Federal Reserve, will most likely respond by hiking interest rates more aggressively in the succeeding policy meetings for the year’s second half to curb the rising prices. Yet, doing so could exacerbate the risk of a full-blown recession in the US.

Currently, the S&P 500 index has declined by more than 20% Year-to-Date (YTD); meanwhile, the Dow Jones and Nasdaq have lost about 15% and 28%, respectively. However, when most people see this as the worst time to invest in the financial markets, others see an opportunity to buy great companies at a massive discount during all this turmoil.

World’s Greatest Investors’ Buying Frenzy

  1. Ray Dalio and Medtronic

First on our list is Ray Dalio, a billionaire investor, and best-selling author who runs one of the world’s biggest and most influential hedge funds, Bridgewater Associates. Dalio made a reputation of being able to see through the noise and outperforming the bull market, and making gains during economic downturns, such as what we are seeing right now.

The biggest new addition to Bridgewater’s portfolio is Medtronic (NYSE: MDT). Medtronic is the world’s leading manufacturer of medical devices and has established a firm foothold in its industry. Moreover, it has the biggest market share in medical devices sold. Despite the market downturn during the pandemic, MDT stood out as one of the primary beneficiaries of increased demand for its medical devices.

2. David Tepper and Amazon

Second is David Tepper, a billionaire hedge fund manager and co-founder of Appaloosa Management LP, named year after year as one of the top hedge fund managers in the world and one of the richest in the industry. In addition, he is the owner of two of the most prominent football leagues, Charlotte FC in Major League Soccer and Carolina Panthers of the National Football League.

Tepper recently increased his fund’s exposure with Amazon (Nasdaq: AMZN) by almost 20% in the year’s first quarter alone. He stated that he believes AMZN looks attractive at its current price level. The company is one of the pioneers of setting a new normal during the pandemic and has registered outstanding financial results year after year.

3. Warren Buffet and Occidental Petroleum

Last but definitely not least is the Oracle of Omaha, which needs no introduction. Buffet’s Berkshire Hathaway has disclosed that it bought an additional 4.3 million shares of Occidental Petroleum (NYSE: OXY), one of the largest gas and oil producers in North America, which has expanded its energy properties across Latin America, Middle-East and even Africa.

This increased the stake of Berkshire at OXY to 19.2% and maintained its status as OXY’s biggest shareholder. As the conflict in Europe continues, the company is set to take advantage of the rising demand for energy worldwide.

Putting Things into Perspective

The current economic downturn is indeed alarming, especially for the general public that worries about what could be next as the falling financial markets and geopolitical instability around the world set as grim reminders that we could be heading closer to the looming recession.

However, in the words of Warren Buffet himself, arguably the greatest investor of all time, “Be fearful when everyone is greedy, be greedy when everyone is fearful.” Thus, the unprecedented global economic tightening happening now could be a great time to accumulate quality companies trading at attractive valuations during this bear market.

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