10 Stocks the Smart Money is Buying for 2021

[Music] hey guys welcome back to the channel in this video we're going to be talking about the top 10 most bought stocks by the big investors of the world as we lead into 2020 might ask well how the hell do you know that brandon and the reason is because of course the big money managers over in the states have to each quarter release a 13 f filing showing what is in their stock portfolio and we can look from 13 filing from quarter after quarter and figure out what they're buying what they're selling but the reason i know what they are collectively all doing as a trend is because i follow a website called data roma which tracks 69 of the largest investors in the world and actually tabulates all of that data for me so i can actually see from q4 2020 as we lead into 2021 what the super investors were holding what they were buying on mass and that's what we're going to be talking about in this video so let's start out with the top 10 most held stocks by these super investors and then later on we'll talk about the top 10 most bought stocks in q4 of 2020 that investors were buying for 2021. so if we start with the most held stock from these super investors it's actually facebook 29 of the super investors hold facebook in their portfolio facebook's obviously a very large moat company and we actually worked out me and hamish on the podcast the other day figured out that of all people that have access to the internet here on planet earth about 75 of them log into at least one of facebook's apps every single month their apps being of course facebook instagram whatsapp or messenger so a big behemoth tech company i'm not surprised that this is the most held stock from the super investors number two is then google this one is held by 27 of the 69 super investors another large moat company obviously with google search they own youtube they also have their own cloud business there's a lot to like about google heading forward and they're a big company but their growth is still really impressive so i'm not surprised at all that the super investors hold google then number three on the list is actually wells fargo which is one of the big us banks now wells fargo is held by 25 of the super investors and i think the reason behind this is mainly due to the value proposition because of course wells fargo like all stocks really in 2020 around march it got absolutely pummeled like it got destroyed like everything else did however everything else just seemed to bounce back up to us you know and now most stocks are setting record highs wells fargo stayed quite depressed for a very long time so i feel as though a lot of these super investors just saw wells fargo as a bit of a value play and it's a value play that would have turned out pretty well so far because it's now starting to rebound quite considerably but i don't think the super investors particularly like wells fargo like a million times more than say some other banks i i just think it's probably the one that offered them perhaps the best buying opportunity but who knows i'm certainly no expert in banks anyway moving on to number four the fourth most held stock by these super investors is guess what google except this time it is the class c shares so we'll move straight along into the fifth most held stock which is bank of america so bank of america is held by 21 of the 69 super investors and it's of course warren buffett's favorite bank well certainly the bank that has the largest position in berkshire hathaway's portfolio there's about 11.3 yeah 11.3 percent of berkshire hathaway's portfolio is tied up in bank of america then six on the list is microsoft so microsoft is held by 20 of the super investors of course it's another big big moat company it's also one of the biggest companies in the world but is still producing some pretty decent growth like a lot of these big behemoth tech companies in the us massive companies but still growing really well in fact currently it occupies 5.3 percent of the s p 500 so microsoft is a monster company but they're still growing really well so i think that's probably why a lot of super investors are in microsoft because of that continued ongoing growth it's also an extremely consistent performer then seventh on the list we have comcast which is held by 20 of the super investors uh this is obviously a large american diversified telecommunications and entertainment company it's actually the world's largest cable tv company it's the largest home internet service provider it's the largest pay tv company um and it's the third largest home phone provider then slotting in at number eight is berkshire hathaway of course warren buffett's incredibly successful conglomerate which the in terms of their wholly owned businesses focuses on insurance railroad and energy but of course buying into berkshire hathaway you also buy into their stock portfolio which has big names like apple uh bank of america coca-cola american express and so on then coming in at number nine we've got amazon which is of course i don't need to tell any of you guys is the big u.s online retailer and then coming in at number 10 is mastercard so mastercard another big fat moat company along with visa so there you have it they are the most held stocks by the super investors and if you ask me i think this is pretty predictable this mix i mean you've got some just of the really large financial companies uh in there you've got some you know diversified conglomerates that still show promise into the future and then apart from that you've got the really big moat companies you know the googles the facebooks uh the microsoft's in there which i think makes sense they're really big companies that they're very well managed they've got massive moats but they're still growing quite quite incredibly if you ask me so i definitely don't think this is a crazy mix of companies to be seen in the top ten makes sense to me but then the next thing i wanted to look at is okay so they're the top 10 most held stocks but what are the top 10 stocks that these investors were buying into as we led into 2021 so during q4 2020 what were the top 10 most bought stocks and coming in at number 10 is exxon mobil now exxon mobil was bought by five of these super investors during the quarter and it's actually the seventh largest oil company in the whole world now i'm the first to put my hand up and say i don't know very much about oil companies because it's just totally outside my circle of competence it's not something i ever looked to invest in but i would probably imagine that the investors buying into exxon mobil during q4 2020 we're doing so is a bit of a value play because if you actually have a look the shares got down to 31.57 in october and that's actually cheaper than where exxonmobil was in march at the height of the crash due to the lockdown due to the pandemics so i think a lot of investors treat it as a value play and to be honest it's done very well because year to date it's already up 30 percent so those investors have certainly done very well anyway moving on the ninth most bought stock in q4 2020 was uh unh united health group so united health group was actually reasonably flat in q4 2020 which just leads me to believe that the investors buying in they weren't necessarily buying because of a dip they just really liked the business and were willing to pay the price that it was even just as it stayed normal you know so if you don't know united health essentially they make health care products and they offer insurance services in 2020 was actually the second largest healthcare company by revenue and the largest insurance company by net premiums so definitely united had a strong 2020 maybe that tempted some of these investors into buying the shares anyway moving on into the eighth most bought stock in the quarter it was bank of america the share price was trending up towards the end of last year but it's uh it's a good thing that it didn't worry these super investors out because again this is another one where it's already up 15.5 in 2021 alone the short amount of time that we've actually had in 2021 that's an insane return to get in like two months but i don't know we've kind of been conditioned to just feel like that's getting relatively normal these days which is definitely not normal but it's just a bizarre very very strange times in the market anyway moving on into the seventh most bought stock it was goldman sachs so another big u.s investment bank this one was also bought by five of the super investors uh last quarter so exact same story as bank of america um the shares have continued to surge in 2021 in fact it's even a little bit better for goldman sachs the shares have gone up uh 20 year-to-date so even better than bank of america then sixth on the list is comcast as we're saying before a big american diversified telecommunications and entertainment company interestingly the shares drifted down to 41 in q4 of 2020 uh i guess enough to pick the interest of five of the super investors then moving on number five the fifth most bought stock by these super investors in q4 2020 was alibaba so alibaba as we know is like the amazon of china and if you actually have a look from march all the way through to the end of october in 2020 shares were just trending up trending up trending up and that actually dropped 24 to the end of the year um and that was as a result of regulators in beijing pausing the 35 billion ipo of the ant group and they also launched an anti-trust investigation into alibaba but for five of the super investors they simply saw this as a buying opportunity and they got in during q4 of 2020 on alibaba then if we move on to the fourth most bought stock this one is merck merck and co so this is an american multinational pharmaceutical company it's one of the world's largest pharmaceutical companies uh in fact according to wikipedia so take that for what it's worth um the company is the seventh largest pharmaceutical company by market cap and revenue and warren buffett he's also a fan of this one he actually bought merck in q3 of 2020 and he added 28 to that position in q4 so another five super investors thought that merck was a pretty good deal and jumped on board so they added or bought this stock in q4 so moving on then the third most bought stock in q4 was facebook so facebook actually traded pretty flat in q4 which maybe to some of these investors looked like an opportunity because it was still coming out of some pretty good results for example coming out of q3 last year they showed 22 year-over-year growth in revenue uh 29 euro growth on their bottom line now one quarter later facebook has continued to post some very impressive results 33 year-over-year growth in revenue 53 year-over-year growth in net income for q4 2020 so it's a business that keeps showing up and keeps producing these fantastic growth numbers but it's also one of these businesses that is not just wildly overvalued like you see a lot of companies i'm talking the amazons and the teslas and whatever they've got these p ratios in the hundreds if if not tesla in in the thousands whereas facebook while i still consider 25 as a p ratio to still be reasonably high it's definitely not uh not ridiculous so with facebook continuing to hover in kind of that 240 to 260 region if there was buying happening in q4 of 2020 by these super investors i wouldn't be surprised to see continued buying so even more buying by these super investors in q1 of 2021. anyway moving on into the second most bought company by these super investors in q4 2020 it was microsoft so microsoft again flat in q4 in terms of stock price and i can't find you know a particular reason why these super investors would have been flooding into microsoft specifically in q4 i think it's just a case of microsoft being a really solid company they're well managed they produce great growth and they're extremely consistent in fact have a look at some of these statistics i'll chuck a couple of these charts on screen if we just have a look at the chart for say revenue growth or operating income or net income or cash flow it's just incredibly consistent microsoft just shows up and basically continues to grow at that same rate year after year after year and have done so for a long time so investors you know it's not always about finding the next big thing sometimes it's about just finding the thing that works and has worked for a long time and is going to continue to work for a long time and just placing your bets you know low risk bets based on past performance and that's that's a lot of investing so it doesn't surprise me at all to see a lot of investors continuing to buy microsoft and i wouldn't be surprised if you look back year you know prior year prior year prior year you probably would have seen continued buying as well because they just show really consistent numbers over time anyway that leads us to the number one most bought stock by the super investors in q4 2020 as we headed into 2021 this company was wells fargo so wells fargo was bought by 10 of the 69 super investors in q4 of 2020 and is held by investors such as michael bury guy spear charlie munger and warren buffett although admittedly buffett is slowly getting out of his uh wells fargo position he doesn't really like the business anymore after everything that went on with the fake accounts scandal i think that was a couple of years ago now but as we're talking about before this is just an example of a big u.s bank and one that was probably offering investors a decent deal of course we were talking about how that share price dropped off in march but didn't really recover it's only now very recently started to recover so i have a feeling that just a lot of of these great super investors just saw value in the stock at around those low levels and decided to buy in and it is just starting to uh starting to rebound so it must have just enticed them at around that 21 range but but overall guys they are the top 10 stocks that the super investors are buy or did buy into in q4 2020. they're the ones that they wanted to buy leading into 2021 and i hope you enjoyed actually looking at the most held stocks as well now just want to say very quickly what do we do with this information do we go out and buy these top 10 stocks because the super investors are buying them definitely not okay i don't want this video to come across as these super investors bought these 10 stocks so you should too that's definitely not what i'm about of course you make your own decisions whatever you want to do with your money whatever stocks you want to buy that's on you however what i think is wise is you know we've got to use this information to to our benefit right so what i think is wise is have a look through these companies and maybe pick out the ones that fit within your circle of competence and don't just buy them but use this as a bit of a guiding light as to maybe some companies that you might want to do some further research in so say you love banks say you love financial companies like warren buffett does maybe you want to go and have a little bit more of a peek at wells fargo or maybe you like it and technology maybe you want to go have a bit more of a look into microsoft that's how really you should treat this information but overall guys i hope you really enjoyed the video leave a like on the video if you did enjoy it or if you found it useful subscribe to the channel if you have not done so already and check out profitful links down in the description below if you want to learn about how i go about my investing basically investing principles that i've learned and apply that i've learnt from you know these top investors that are included in this video so if you wanted to learn more about that check out the links down in the description below you're also helping out the channel if you choose to buy one of those courses over on profitable so i certainly do appreciate that but that's it for today guys i hope you really enjoyed the video and i'll see you guys in the next one [Music] [Applause] [Music] [Applause] [Music] [Applause] foreign

Channel: New Money

Views: 139,792

Rating: 4.9423985 out of 5

Keywords: stock market, stocks to buy now, best stocks to buy now, best stocks to buy 2021, top stocks, top stock picks, stocks to buy 2021, top stocks to buy now, best stocks to buy, which stocks to buy, how to invest in 2021, best companies to invest in 2021, what stocks to buy, which stock to buy today, best stocks to invest in 2021, stocks to buy, warren buffett portfolio, warren buffett investment strategy, charlie munger, michael burry, ray dalio, good stocks

Id: X7hr1VDufA0

Length: 17min 16sec (1036 seconds)

Published: Sun Feb 28 2021