In this article, we will take a detailed look at the 11 Stocks Insiders and Billionaires Are Crazy About. For a quick overview of such stocks, read our article 5 Stocks Insiders and Billionaires Are Crazy About.
In his famous book titled One Up on Wall Street, Peter Lynch talks about how average investors miss out on opportunities by not paying attention to everyday businesses they and their families interact with. Lynch tells the story of his friend who did “research” based on analyst price targets and expert stock recommendations and put $3,000 in a disk drive company stock he and his advisors thought would skyrocket. But Lynch’s friend failed to pay attention to a women apparel company his wife was a fan of. This apparel company’s stores were always packed with customers and its products were super popular among women, but the average investor did not pay attention to this common knowledge. After a few months this apparel company’s stock skyrocketed while the disk drive company he had invested in tanked.
“Actually I could go on for several pages about the tenbaggers I’ve missed, and more sorry examples will crop up further along in the book. When it comes to ignoring promising opportunities, I’m as adept as the next person. Once I was standing on the greatest asset play of the century, the Pebble Beach golf course, and it never occurred to me to ask if it was a public company. I was too busy asking about the distance between the tees and the greens. Luckily there are enough tenbaggers around so that both of us could fail to notice the majority and we’ll still hit our share. In a large portfolio such as mine I have to hit several before it makes an appreciable difference. In a small portfolio such as yours, you only have to hit one. Moreover, the nice thing about investing in familiar companies such as L’eggs or Dunkin’ Donuts is that when you try on the stockings or sip the coffee, you’re already doing the kind of fundamental analysis that they pay Wall Street analysts to do. Visiting stores and testing products is one of the critical elements of the analyst’s job. During a lifetime of buying cars or cameras, you develop a sense of what’s good and what’s bad, what sells and what doesn’t. If it’s not cars you know something about, you know something about something else, and the most important part is, you know it before Wall Street knows it. Why wait for the Merrill Lynch restaurant expert to recommend Dunkin’ Donuts when you’ve already seen eight new franchises opening up in your area? The Merrill Lynch restaurant analyst isn’t going to notice Dunkin’ Donuts (for reasons I’ll soon explain) until the stock has quintupled from $2 to $10, and you noticed it when the stock was at $2.”
Paying attention to common knowledge and making the best use of publicly available data can make you an above-average investor. That’s why Insider Monkey believes in using public knowledge to find investing opportunities hidden in plain sight. In this article we will be using two important pieces of common knowledge and see which stocks are loved by both billionaires as well as insiders.
Methodology
For this article we used Insider Monkey’s insider trading screener to first list down the stocks that saw huge insider buying activity over the past three months. We only picked stocks that saw heavy insider purchases from officers, executives or directors. From these stocks we picked 11 stocks with the highest number of billionaires. To find the number of billionaire investors for each stock we used Insider Monkey’s proprietary database of billionaire-owned stocks. Some notable names in the list include Exxon Mobil Corp’s (NYSE:XOM), Block Inc (NYSE:SQ) and Keurig Dr Pepper Inc (NASDAQ:KDP).
11. Asana Inc (NYSE:ASAN)
Number of Billionaire Investors: 8
Software company Asana Inc (NYSE:ASAN) ranks 11th in our list of the stocks billionaires and insiders are crazy about. In September Asana Inc’s (NYSE:ASAN) CEO Dustin Moskovitz bought over 1 million shares of Asana Inc (NYSE:ASAN) at $18.94.
A total of 8 billionaires tracked by Insider Monkey were piled into the stock as of the end of September 2023.
10. Immunovant Inc (NASDAQ:IMVT)
Number of Billionaire Investors: 11
Immunovant Inc (NASDAQ:IMVT) shares have gained about 127% year to date through December 17. In October, Roivant Sciences Ltd., which has a director status at Immunovant Inc (NASDAQ:IMVT), bought over 1.5 million shares of Immunovant Inc (NASDAQ:IMVT) at $38 per share.
A total of 11 billionaires were long Immunovant Inc (NASDAQ:IMVT) as per Insider Monkey’s billionaires database. Some notable billionaires having stakes in Immunovant Inc (NASDAQ:IMVT) included Ken Griffin and Israel Englander.
Alger Small Cap Growth Fund made the following comment about Immunovant, Inc. (NASDAQ:IMVT) in its Q3 2023 investor letter:
“Immunovant, Inc. (NASDAQ:IMVT) is a clinical-stage biopharmaceutical company which develops monoclonal antibodies for the treatment of autoimmune diseases. The company’s lead asset, IMVT-1402 is a next-generation antibody drug that has the potential to offer best-in-class efficacy and safety profiles, in our view. Moreover, we believe the drug has the potential to offer the flexibility to address both acute and chronic diseases, pursuing an approximate $30 billion total addressable market in autoimmune conditions. During the quarter, shares contributed to performance as Phase 1 clinical trial data for IMVT-1402 demonstrated best-in-class efficacy and favorable safety. We believe these attributes, combined with a convenient route of administration that may enable patient self-administration, positions IMVT-1402 as a potential treatment for a variety of autoimmune diseases.”
9. Madrigal Pharmaceuticals Inc (NASDAQ:MDGL)
Number of Billionaire Investors: 11
Madrigal Pharmaceuticals Inc (NASDAQ:MDGL) ranks 9th in our list of the stocks insiders and billionaires are crazy about.
Baker Bros. Advisors LP., which has a director status at Madrigal Pharmaceuticals Inc (NASDAQ:MDGL), bought over 101,000 shares of Madrigal Pharmaceuticals Inc (NASDAQ:MDGL) at $221.20 per share. In November, Baker Bros bought 1,662,196 shares of Madrigal Pharmaceuticals.
A total of 11 billionaires in Insider Monkey’s database had stakes in Madrigal Pharmaceuticals Inc (NASDAQ:MDGL) as of the end of the third quarter.
In addition to MDGL, billionaires are also piling into Exxon Mobil Corp’s (NYSE:XOM), Block Inc (NYSE:SQ) and Keurig Dr Pepper Inc (NASDAQ:KDP).
8. CNX Resources Corp (NYSE:CNX)
Number of Billionaire Investors: 11
Natural gas company CNX Resources Corp (NYSE:CNX) ranks 8th in our list of the best stocks insiders and billionaires are crazy about. Bernard Lanigan, Jr., a board member at CNX Resources Corp (NYSE:CNX), loaded up on CNX Resources Corp (NYSE:CNX) stock earlier this year. In September, the director bought 45,805 CNX Resources Corp (NYSE:CNX) shares at $21.83 per share.
A total of 11 billionaires in Insider Monkey’s database of billionaires had stakes in CNX Resources Corp (NYSE:CNX) as of the end of September. The biggest hedge fund stakeholder of CNX Resources Corp (NYSE:CNX) was Mason Hawkins’ Southeastern Asset Management which owns a $211 million stake in CNX Resources Corp (NYSE:CNX).
Longleaf Partners Small-Cap Fund made the following comment about CNX Resources Corporation (NYSE:CNX) in its Q3 2023 investor letter:
“CNX Resources Corporation (NYSE:CNX) – Natural gas company CNX Resources was the top performer in the quarter. The company benefited from rising energy prices, as well as strong operational execution. CNX remains highly discounted, as the market does not give the company credit for its longer-term undrilled assets or its “new technology investments,” which include methods to reduce carbon on a net basis. Management expects this to be a material business for CNX over the longer term, but for now it is a high-quality hidden asset. CNX has taken advantage of the price disconnect through meaningful share repurchase.”
7. Exelixis Inc (NASDAQ:EXEL)
Number of Billionaire Investors: 12
Alameda, California-based drug discovery company Exelixis Inc (NASDAQ:EXEL) saw strong insider buying activity in November. David E. Johnson, a director at Exelixis Inc (NASDAQ:EXEL), bought 120,409 shares of Exelixis Inc (NASDAQ:EXEL) at $21.61 per share.
As of the end of the third quarter of 2023, 12 billionaires had stakes in Exelixis Inc (NASDAQ:EXEL). Some famous billionaires with stakes in Exelixis Inc (NASDAQ:EXEL) include Cliff Asness and Israel Englander.
6. Warner Bros Discovery Inc (NASDAQ:WBD)
Number of Billionaire Investors: 13
Earlier this month, Steven O. Newhouse, an independent director at Warner Bros Discovery Inc (NASDAQ:WBD), bought 10,000,000 shares of Warner Bros Discovery Inc (NASDAQ:WBD) at $12.49 per share.
A total of 13 billionaires in Insider Monkey’s database had stakes in Warner Bros Discovery Inc (NASDAQ:WBD). Like WBD, hedge funds also like Exxon Mobil Corp’s (NYSE:XOM), Block Inc (NYSE:SQ) and Keurig Dr Pepper Inc (NASDAQ:KDP).
Longleaf Partners Fund made the following comment about Warner Bros. Discovery, Inc. (NASDAQ:WBD) in its Q3 2023 investor letter:
“Warner Bros. Discovery, Inc. (NASDAQ:WBD) – Media conglomerate Warner Bros Discovery (WBD) declined in the quarter with a combination of the writers’ and actors’ strikes headlines, and a fight between Charter and Disney that led to more concerns about the linear and streaming profit structure. Although both situations actually improved as the quarter went on, both created uncertainty that weighed heavily on the WBD stock price in the near term. The underlying business is executing better, with solid free cash flow generation reported in the quarter that should continue for the foreseeable future. The competitive landscape is getting brighter with multiple streamers taking price increases. WBD is in the hands of a strong management team and board that are focused on creating long-term value for shareholders.”
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Disclosure. None. 11 Stocks Insiders and Billionaires Are Crazy About was initially published on Insider Monkey.