3 Stocks Billionaires Are Buying That You Should Too

Following what stocks billionaire investors are buying is a great way to source ideas. However, you must be careful only to utilize billionaire hedge fund managers who aren't trading in and out of positions each quarter. If you have a long-term investing mindset, you should follow investors who have similar thinking patterns.

Of the billionaire hedge fund managers I follow, there were some intriguing stock purchases that occurred during the fourth quarter. While this information is potentially half a year old by this time, all these stocks are trading at a lower price now than they were at any time in Q4. As a result, I'm confident that these stocks are still great buys, as the investing thesis behind these stocks hasn't changed, even if the market's risk appetite has.

The three stocks purchased by billionaires during Q4 were Nvidia (NASDAQ: NVDA), Meta Platforms (NASDAQ: META), and Amazon (NASDAQ: AMZN). I think all three of these are top stock picks and worth scooping up right now.

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1. Nvidia

Nvidia has made investors of all sizes a ton of money in the artificial intelligence (AI) buildout, and there is still a lot of Nvidia belief among the billionaire investor crowd. This includes Daniel Loeb at Third Point, who purchased Nvidia shares during Q4. Although Nvidia has rebounded from its lows over the past couple of days, the company is still cheaper now than at any point in Q4.

Nothing has changed in the AI world since then. In fact, since Q4, the AI hyperscalers have all announced record data center capital expenditures. Because Nvidia makes the computing units that go into these data centers, it's expected to deliver impressive growth in 2026. Wall Street analysts project 71% revenue growth for Nvidia this year, making it a strong candidate to scoop up now, as the stock is trading for a mere 21.2 times forward earnings.

2. Meta Platforms

Meta Platforms was purchased by one of the most prominent billionaire investors during Q4. Bill Ackman at Pershing Square Capital Management loaded up on Meta's stock, purchasing nearly $2 billion worth of shares. Ackman was so confident in Meta that it's now more than an 11% stake in his investment portfolio. That's a huge bet on Meta, but it makes complete sense.

The market mostly misunderstands Meta. It's primarily an advertising business that spends a decent chunk of its cash flows on futuristic technologies like AI glasses and generative AI.

While investors focus on the amount of money that the company is spending on these other bets, the market forgets that Meta is running one of the most dominant ad businesses in the world. During Q4, the company's revenue rose 24% year over year to $60 billion. That level of growth for companies this size is nearly unheard of and shows Meta's business strength.

Ackman believes the same thing, and with Meta trading for 19 times forward earnings, now is a perfect time to buy shares.

3. Amazon

Ackman wasn't done purchasing stocks in Q4. He also scooped up 3.8 million shares of Amazon, which equates to about $750 billion at today's share price. Ackman wasn't alone in purchasing Amazon during Q4, either. Stanley Druckenmiller at Duquesne Capital also purchased shares of Amazon.

Like the other stocks, Amazon is cheaper now than at any time in Q4. Amazon's business is also not at risk of being disrupted. It has a dominant e-commerce platform with delivery logistics that no competitor can match. It also has a thriving cloud computing segment (AWS), which is benefiting from the AI arms race. Few companies can play in both fields as Amazon does, making it a great stock to purchase right now.

Keithen Drury has positions in Amazon, Meta Platforms, and Nvidia. The Motley Fool has positions in and recommends Amazon, Meta Platforms, and Nvidia. The Motley Fool has a disclosure policy.