Three High-Octane Growth Shares That Wealthy Investors Are Acquiring
Investors no longer need to speculate about where to invest their funds in the stock market. Wealthy investors conduct thorough research before purchasing any stock, which is why it's worth observing their transactions (or disposals). Fortunately, financial firms managing over $100 million are obligated by law to share their holdings with the Securities and Exchange Commission (SEC).
Our team scrutinized the holdings of certain billionaire fund managers. Here's why Amazon (AMZN 2.23%), Nike (NKE 2.65%), and Philip Morris International (PM -1.64%) look promising.
Amazon is transforming into an advertising powerhouse
*John Ballard* (Amazon): Amazon has proven itself as a lucrative investment for decades. It demonstrates that great businesses with strong competitive advantages can continually deliver profits to shareholders. Amazon's market capitalization recently reached $2.1 trillion, and a closer inspection of the company reveals that its shares could potentially be worth even more in future years.
Amazon is synonymous with online retail, which accounted for over 38% of the company's revenue in the recent quarter. However, it's also evolving into a major player in retail media, projecting to be among the leaders in advertising with one of the fastest-growing markets in the industry. The company leverages its high-traffic online platform to generate billions of ad revenue from merchants, publishers, and others. In the last quarter, Amazon's advertising revenue increased by 19% year-over-year, excluding currency fluctuations, reaching a $57 billion annual run rate.
Amazon's non-retail services, such as advertising and cloud computing, contribute a significant portion of the company's total revenue. As these services yield higher margins than retail sales, the growth in retail media and cloud computing is contributing to the company's rising profits.
Amazon generated an impressive $49 billion in free cash flow in the last year, contributing to its large market capitalization. It's evident that Amazon will continue to grow its non-retail revenue at a rapid pace, given that the advertising and cloud opportunities are at the beginning of their long-term growth, which should make Amazon even more attractive to investors. Several highly regarded investment managers offloaded their shares in the third quarter, but billionaire Chase Coleman of Tiger Global Management increased his firm's stake. I concur with Coleman and believe that Amazon shares represent a sound investment.
The titan is now a challenger
*Jennifer Saibil* (Nike): Nike is undoubtedly the front-runner in the activewear industry, with no rival even coming close. Its second-biggest competitor, Adidas, has just half of Nike's sales - $25 billion compared to Nike's $50 billion over the previous 12 months. Although Nike's sales have dropped by 10% in the 2025 fiscal first quarter (ending Aug. 31), it maintains its dominant position in the industry due to its powerful brand and assets.
It's hardly surprising that billionaire Bill Ackman, the head of Pershing Square Capital, would seize the opportunity for a rebound. Ackman has taken a bold stance in the past, and recently boosted his stake in Nike from 3,040,132 shares to 16,280,338 shares, representing a 436% increase.
While Nike has been grappling with the inflationary environment, it made strategic decisions in the past few years to reduce its wholesale partnerships and strengthen its direct-to-consumer business. But this focus on digital channels didn't anticipate changing shopping trends, leaving room for competitors to capitalize on. Nike's decision to divert resources away from innovation left a gap that smaller brands like Berkshire Hathaway's Brooks and On Holding exploited, claiming greater market share.
Nike is already taking steps to rectify the situation. It has a new CEO in Elliott Hill, and the company is working on rejuvenating its wholesale partner program. Part of the recent sales decline has been due to a shift in investments away from current channels and product development towards wholesale channels and new product lines.
Nike's stock has lost 32% of its value this year and currently trades at a price-to-earnings (P/E) ratio of 21. Long-term investors can confidently join Ackman in backing the Nike comeback.
The smart money is amassing in this tobacco company
*Jeremy Bowman* (Philip Morris International): Philip Morris International has been a standout performer this year as the global distributor of cigarette brands like Marlboro has successfully shifted towards next-gen products like Iqos heat-not-burn stocks and Zyn nicotine pouches. The stock is now up 38% year-to-date.
Billionaire investors have taken notice of this strategy, and among those buying the stock in Q3 were Stanley Druckenmiller's Duquesne Family Office, Ken Griffin's Citadel Advisors, and Rajiv Jain's GQG Partners.
Philip Morris offers a unique blend of growth, income, and security. Like its tobacco-stock peers, the company has a long history of paying dividends, and it currently offers a dividend yield of 4.2%, having recently increased the dividend by 4%, maintaining a legacy of dividend hikes.
In the third quarter, Philip Morris announced an organic revenue surge, excluding currency impacts, amounting to 11.6%, reaching $9.9 billion. Organic operating income shot up by 13.8% to hit $3.7 billion, boosting adjusted earnings per share by 14% to $1.91. These figures surpassed predictions by analysts.
A significant portion of this growth can be attributed to its emerging business sectors. Shipments for heated tobacco units increased by 8.9%, while deliveries for oral smoke-free products surged by a staggering 22.2%. Philip Morris's smoke-free segment now contributes 38% to its overall revenue and 40% to its gross profit.
The company is actively amplifying its Zyn pouch production with strategic investments in American factories. Furthermore, it has acquired the rights to market Iqos in the United States.
Amidst the challenges facing the conventional tobacco industry, Philip Morris has expertly tapped into a burgeoning market, yielding substantial returns for investors.
Based on the provided text, here are two sentences containing the given words:
The investment strategy of financial firms managing over $100 million requires them to share their holdings in companies like Amazon, Nike, and Philip Morris International with the Securities and Exchange Commission.
Investors who closely follow the transactions of wealthy investors and financial firms might find potential investments in sectors like advertising, such as Amazon, or in companies transitioning towards non-traditional products, like Philip Morris International.
