It makes sense to follow what billionaires are buying. Investors are aiming to maximize their investments, and if someone else turned their money into billions, it's a good sign that they may know what they're doing.

You can mirror a billionaire's movements to a certain degree. Only their holding company's or hedge fund's positions are public, if that's how they got their billions, not their personal filings. These positions are only reported on a quarterly basis, so you won't know exactly when they're buying or selling. And they likely have different investing goals than yours, especially if they're trading other people's money.

That doesn't mean you can't get inspiration from a billionaire's portfolio. It's often an excellent place to find great stock ideas. Walt Disney (DIS -0.59%), Toast (TOST -0.59%), and American Express (AXP 1.06%) are three billionaire-owned stocks that are excellent picks right now.

1. Disney: On its way back up

Disney has been in the news a lot lately, and one reason is a proxy battle with billionaire hedge fund manager Nelson Peltz. Peltz's fund, Trian Partners, owns $3 billion of Disney stock, or 1.3% of its total market capitalization.

After years of challenging conditions, beginning with the pandemic, Disney looks like it's finally ready to get back to steady growth. Demand is high for Disney's theme parks, streaming is getting close to profitability, and filmmaking is back on schedule after the Hollywood writers' strike.

Revenue was flat year over year in the 2024 fiscal first quarter (ended Dec. 30), but Wall Street cheered the report, and Disney stock is up 36% year to date. Earnings per share (excluding certain items) were up from $0.99 last year to $1.22 this year, and operating income increased 27% year over year. This was partially driven by improvements in streaming, and streaming operating losses were cut by 86% from last year. Management reiterated that it expected Disney+ to be profitable by the end of fiscal 2024.

Investors were getting worried when Disney+ expenses were skyrocketing and subscriptions were slowing down, and the overall vision for the company looked unclear. Under the management of returning CEO Bob Iger, investors have become more confident in Disney's direction. Iger wants to put creativity back in the center of things, and Disney has a large slate of fan-favorite content coming out.

The company is investing $60 billion in upgrading its theme parks and opening new ones, and experiences are an important element of Disney's strategy -- the cycle of bringing its beloved characters and distinctive style for fans to consume in a variety of experiences and content.

Disney has finally reinstated its dividend after suspending it early in the pandemic, and it plans to repurchase $3 billion of shares in 2024. Expect Disney stock to keep rising this year and to create shareholder value well into the future.

2. Toast: Simple model, big rewards

The second stock I recommend buying that prominent billionaires own is Toast, owned by Tiger Management's Chase Coleman. Toast markets full management solutions for restaurants. It offers hardware and software packages and operates as a lucrative software-as-a-service (SaaS) model, bringing in high and growing recurring revenue. It also makes money from payment processing, adding another high-margin revenue stream to its business.

Toast measures its growth in locations added, and it's been adding new ones at a fast pace. It services 106,000 locations as of the end of 2023, a 34% increase year over year. Revenue increased 42% year over year for the full year to $3.9 billion, gross profits outpaced that and increased 63%, and net loss contracted from $275 million to $246 million for the year.

Toast's tools and services can completely change how a restaurant runs, improving efficiency and saving them time and money, which is why so many owners realize that it's a worthwhile investment. The company sees a massive market opportunity, with $110 billion in global market and $15 billion in its current serviceable addressable market.

Toast stock is up 36% this year so far, and it's still in its early growth stages.

3. American Express: Refreshing itself to bring in new members

Of course, on a list like this, it's natural to find a Warren Buffett stock. His holding company, Berkshire Hathaway, owns an equity portfolio with around 40 stocks at any given time, but American Express is one of its longest-held positions.

American Express has many things Warren Buffett loves in a stock; a strong brand, a continued opportunity to play a role in the economy, lots of cash, and a wide moat. Its fee-based card model is a recurring revenue stream that leads to loyalty, and the fees pad a strong bottom line. They increased 20% year over year in 2023 and accounted for 12% of total revenue.

American Express reported excellent results in 2023 and is ahead of its long-term goals. Revenue and EPS both increased 14% year over year, and it added 12.2 million new fee-based cards for a total of 140 million globally.

Over the past few years, American Express has refreshed its image to appeal to a younger clientele, and this cohort is driving its growth. Indeed, 60% of global card acquisitions were millennial and Gen Z shoppers in 2023, and they accounted for 75% of new U.S. consumer platinum and gold members. American Express has successfully pivoted to attract this new young cohort that will grow with it and provide years of revenue and profits.

American Express stock is up 22% this year so far, and this Buffett favorite should lead to strong gains for shareholders in 2024 and beyond.