Watching what billionaires are doing is simply the first step of a bigger funding course of.
There are over 2,900 individuals on the earth with a web value of over $1 billion, in response to the World’s Billionaires Checklist from Forbes. Some construct wealth by operating a enterprise, and others simply permit belief fund managers to construct wealth for them. However lots of the world’s billionaires proceed to develop their wealth by means of investing in shares.
Amongst them are Warren Buffett, Invoice Ackman, and David Tepper. Let’s take a look at one inventory every of those buyers has purchased just lately.
Picture supply: Getty Photos.
1. Warren Buffett
Warren Buffett turned CEO of Berkshire Hathaway by means of investing. And after taking on the corporate, he continued to put money into shares with the corporate’s money. That is continued for many years now, permitting Buffett’s web value to climb to over $150 billion at present. And in current months, Buffett’s Berkshire has been shopping for shares of Domino’s Pizza (DPZ -1.96%).
Buffett’s high rule for investing is: “By no means lose cash.” And I imagine Domino’s Pizza inventory will adhere to this rule over the long run. Here is why.
Domino’s is the world’s largest pizza chain. Nevertheless it largely franchises its eating places. The corporate operates an enormous provide chain on behalf of its franchisees, which is a giant cause they will run their eating places profitably. And for its half, Domino’s makes high-margin income from franchise charges.
For my part, Domino’s measurement and provide chain are aggressive benefits. The enterprise doubtless will not battle with profitability, and administration makes use of the income to reward shareholders with inventory buybacks and a dividend that routinely goes up.
Domino’s has underperformed the S&P 500 lately and will battle to outperform in coming years. However it should doubtless enhance in worth over the long run, which is why it follows Buffett’s high rule.
Berkshire did not buy many shares of Domino’s in the newest quarter. However its stake did enhance, and it now holds over 2.6 million shares of the pizza chain.
2. Invoice Ackman
Earlier than he was well-known, Invoice Ackman was finding out Buffett’s investing philosophy to study what he might. Contemplating Ackman’s web value is over $9 billion at present, I might say it labored out fairly properly. And within the second quarter, he made an funding in Amazon (AMZN 0.29%) that he believes can carry his web value larger nonetheless.
It is onerous to argue towards an funding in Amazon inventory. Its relevance to shoppers as the biggest e-commerce firm on the earth is unimaginable to understate.
Nevertheless it’s additionally majorly essential to companies as properly. Third-party sellers attain prospects with Amazon’s market, advertisers can discover new prospects with its promoting slots, and firms can get a tech improve through the use of the instruments and merchandise on Amazon Net Companies (AWS).
Particularly with AWS, Amazon has a money cow that may reward shareholders for years to return. During the last 12 months, this cloud-computing division has generated over $110 billion in web gross sales and has earned the corporate nearly $43 billion in working earnings. It is an enormous revenue stream for the corporate that ought to solely proceed for the long run, particularly with drivers akin to synthetic intelligence (AI) nonetheless ramping up.
Ackman’s hedge fund, Pershing Sq., purchased 5.8 million shares of Amazon within the second quarter of 2025. It makes the corporate value 9% of the portfolio’s worth, demonstrating Ackman’s conviction on this inventory.
3. David Tepper
Lastly, David Tepper has a web value of over $21 billion. And his hedge fund, Appaloosa Administration, has been busy shopping for shares of Vistra (VST 2.86%). This was a more-sleepy inventory. Nevertheless it’s been a high performer lately on account of surging demand for electrical energy.
Vitality shares akin to Vistra did not see a lot motion for some time due to the low progress in electrical energy consumption within the U.S. However there are developments that at the moment are catalyzing progress higher than something within the final 20 years. For simply a few examples of what is driving progress, administration on a current convention name mentioned, “Hyperscalers proceed to put money into AI and knowledge heart infrastructure,” and these items are power intensive.
The dialog relating to nuclear power is heating up as buyers surprise what’s going to meet rising power demand. However whereas many buyers are specializing in nuclear start-ups, Vistra already produces nuclear energy in addition to producing electrical energy from a wide range of different sources.
To be clear, Tepper’s Appaloosa hasn’t bought any shares of Vistra for the reason that fourth quarter of 2024. The truth is, it was a vendor within the two most up-to-date quarters. That mentioned, it was among the many high 100 shares that have been being purchased by hedge funds within the second quarter of 2025, in response to the web site HedgeFollow. And Tepper’s place remains to be substantial contemplating it is valued at roughly $350 million.
Play your individual recreation
Buffett, Ackman, and Tepper have made some huge cash by investing in shares, and proper now every might make much more cash if shares of Domino’s Pizza, Amazon, and Vistra go up.
Nevertheless, readers ought to do not forget that all buyers have totally different monetary wants, objectives, and time horizons. Subsequently, no person ought to blindly copy one other investor’s selections, anticipating issues to work out high quality. On the contrary, all buyers ought to perceive the businesses they’re invested in and will make their very own selections.
Taking a look at what billionaires are shopping for is an effective solution to generate funding concepts — and Domino’s, Amazon, and Vistra are good concepts, in my opinion. However arising with an thought is simply step one in an extended course of of making an funding thesis earlier than shopping for shares.
