If you are trying to find some decent stocks to invest in, a good strategy is to try and follow the “smart” money, which means finding the stocks that expert institutional investors like asset managers and hedge funds are investing a lot of money in. And an even better strategy is invest in the same stocks that the institutional investors are investing in.
With markets experiencing high volatility, it’s also a great idea to look at the large, well-established firms in the Dow that have the large size and capacity to get through recessions and hard market conditions. Here are two Dow stocks that billionaires are investing in.
1. Warren Buffett has invested in Chevron
Warren Buffett and his firm Berkshire Hathaway has made a large bet on the big U.S. oil producer Chevron, increasing their stake from around 38 million shares up to 159 million shares in Q1.
Berkshire’s investment in Chevron is now worth over $23.7 billion. The firm makes up 7.7% of Berkshire Hathaway’s portfolio, and is tied for the portfolio’s third-biggest holding. Chevron’s stock is one of the few leaders out there in 2022, up over 24% so far this year. Russian oil embargoes and bans due to the country’s ongoing war with Ukraine have increased the price of oil and made the domestic oil producers a lot more valuable.
After reaching all-time highs, Chevron’s stock has dropped a bit and no one knows exactly where oil prices might go in the future. But the firm is a strong dividend stock and has raised its long-term projections earlier in the year for its operating cash flow and capital returns.
2. George Soros has made investments in Salesforce
In Q1 if 2022, regulatory filings reveal that George Soros, who heads Soros Fund Management, purchased 106,250 additional shares of Salesforce, raising the fund’s stake in the cloud firm by close to 70%.
And it seems like Soros has made a timely investment. Following Salesforce’s newest earnings report, shares have rebounded after what has still been a hard year for the firm. For Q1 of fiscal year 2023, Salesforce has delivered revenue and earnings that have beat analyst predictions and raised guidance. Investors were very pleased because they had been worried about the demand heading into the quarter because of everything that was going on in the economy.
The company still has a lot of untapped potential. Salesforce’s market opportunity has continued to grow as firms digitize their operations and continue to move to the cloud. The firm said that its serviceable market will increase to $13 billion this year and then continue to grow to $33.5 billion by 2029.