If you want to be a better golfer, you'll study the swings of the world's greatest golfers. If you want to be a better manager, you'll study what the world's greatest managers do. But what if you want to be a better investor? It can pay off to study what the world's greatest investors do as well.
Granted, you won't always want to invest in the same stocks as they do. However, knowing their favorite stocks and why those stocks are in their portfolios can be helpful. With that in mind, here are three stocks the world's greatest investors like the most right now.
Amazon.com (AMZN -0.47%) ranks as one of the favorite stocks for three multibillionaire investors. It's David Tepper's Appaloosa Management hedge fund's second-largest holding. Amazon is George Soros' Soros Fund Management's fourth-largest position. And while the stock is lower on Warren Buffett's list, his Berkshire Hathaway (BRK.A -0.10%) (BRK.B -0.36%) owns more than $1.3 billion worth of Amazon shares.
So far this year, Amazon hasn't done much for these super-wealthy investors' portfolios. The stock has slid partially as a result of the overall market sell-off. However, Amazon also disappointed investors with slower revenue growth.
But it's a pretty safe bet that Tepper, Soros, and Buffett remain confident about Amazon's long-term prospects. The company still dominates e-commerce. Its Amazon Web Services cloud unit continues to grow by leaps and bounds. Amazon is also aggressively expanding into new markets, as evidenced by the company's plans to acquire primary care provider 1Life Healthcare (better known as One Medical) for $3.9 billion.
Both Buffett and his fellow multibillionaire investor Ray Dalio think very highly of Coca-Cola (KO 0.20%). The food and beverage giant ranks as the third-largest holding for Berkshire and the fourth-biggest stock position for Bridgewater Associates, the huge hedge fund founded by Dalio.
Coca-Cola is handily beating the market in 2022. The stability of the blue-chip stock has attracted many investors who were looking for a relatively safe place to park their money in the midst of tremendous volatility.
However, Buffett and Dalio aren't newcomers to Coke. They've both owned the stock for years. Berkshire first initiated a position in Coca-Cola back in 1988. The purchase prompted Buffett to write in his annual shareholder letter one of his most memorable lines, "When we own portions of outstanding businesses with outstanding managements, our favorite holding period is forever."
There's no way we could leave Apple (AAPL 0.32%) off this list. While it's not a top holding for many of the world's greatest investors, it certainly is for Buffett. Apple ranks by far as the biggest position in Berkshire's portfolio. Buffett even refers to the tech company as one of Berkshire's "four giants." The other three "giants" are subsidiaries of Berkshire.
Although Apple has fallen year to date, it's still outperforming the broader market. The company continues to face some supply chain problems that are weighing on financial growth. However, these should only be temporary issues.
You can rest assured that Buffett believes that Apple's future is bright. He led Berkshire to scoop up more shares of the stock earlier this year and only stopped after Apple began to rebound.