3 No-Brainer Billionaire-Owned Stocks to Buy Right Now

Some would have you believe that investing is incredibly complicated, but at its core, a sound philosophy boils down to buying great companies and holding them for the long haul. It’s as simple as that.

Where to find great companies? Of the various sources for inspiration, one common starting point is investigating the stock picks of billionaires. In doing so, it’s apparent that Alphabet (GOOG 1.17%) (GOOGL 1.11%), Chevron (CVX 1.30%), and Kraft Heinz (KHC 1.10%) are all high-quality stocks that occupy prominent positions in billionaires’ portfolios. Even better: They’re all hanging on the discount rack.

Alphabet: Loved by billionaires

Besides its popularity among typical retail investors, Alphabet stock also has prominent positions among the holdings of many billionaires. Of the nine stocks Bill Ackman has in his Pershing Square Capital Management portfolio, Alphabet is the fourth-largest position, representing about 13% of the holdings at the end of the second quarter of 2024.

Ray Dalio is another billionaire enthusiastic about Alphabet; it was the third-largest position among the 877 holdings in his Bridgewater Associates portfolio as of the end of the second quarter.

With Alphabet recently losing an antitrust lawsuit, bears are fearful of the potential fallout — like the court ordering the company to pay significant fines as well as the requirement that it will have to change its business practices.

Although these are valid concerns, it’s highly unlikely that this spells doom for a company that’s not only a leader in artificial intelligence (AI) but also an advertising force thanks to its ownership of YouTube and its retail presence through Android and Fitbit — various endeavors that contribute to its formidable financial position. Through the first half of 2024, for example, Alphabet reported net income of $47.3 billion and operating cash flow of $55.5 billion.

Alphabet’s class C shares are currently valued at 23.6 times trailing earnings, representing a discount to their five-year average earnings multiple of 26.2 and the S&P 500‘s price-to-earnings ratio (P/E) of 29.2.

Chevron: An under-rated energy stock

Those who follow Warren Buffett will certainly recognize Chevron stock: It’s been in the Berkshire Hathaway portfolio for several years now. The Oracle of Omaha also has exposure to the oil patch through his position in Occidental Petroleum, though Chevron is the more sizable position, representing 5.6% of the Berkshire portfolio.

Shares of the oil supermajor have dipped about 4% since it reported second-quarter 2024 financial results. Reporting earnings per share (EPS) of $2.43, Chevron failed to deliver on analysts’ expectations for $2.93.

But this hardly is an indication that the company is no longer an ideal energy stock. For one, Chevron has demonstrated steadfast commitment to rewarding shareholders, hiking its dividend for 37…