For the better part of the last seven years, Wall Street has been a stomping ground for wealth creation. The benchmark S&P 500 has rallied by at least 16% in six of the last seven years, with the 2022 bear market being the lone exception.
Investors have had plenty to be excited about, including the evolution of artificial intelligence (AI), the advent of quantum computing, the prospect of lower interest rates, record-breaking share buyback activity by S&P 500 companies, and a resilient U.S. economy.
Billionaire money managers have taken notice of these catalysts, with many holding a stake in one or more of America's most influential public companies. We know this because institutional investors with at least $100 million in assets under management are required to file Form 13F with the Securities and Exchange Commission no later than 45 calendar days after the end of each quarter. A 13F details for investors the stocks that Wall Street's savviest fund managers bought and sold in the latest quarter.
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Although newly retired billionaire Warren Buffett often drew the biggest crowd during 13F filing season, billionaire Philippe Laffont of Coatue Management is no slouch, either. Laffont oversaw close to $40.8 billion in assets under management as of the end of September, and he has a knack for outperforming the benchmark S&P 500.
Based on the two most recent 13F filings we have, covering trading activity ended June 30 and Sept. 30, there are three members of the trillion-dollar club that Laffont can't stop buying.
Alphabet
Arguably, no trillion-dollar stock has been more desired in recent memory by Coatue's billionaire boss than Google parent Alphabet (GOOGL +1.60%)(GOOG +1.57%). During the third quarter, Laffont opened a 2,091,574-share position in Alphabet's Class C shares (GOOG) and increased his fund's existing stake in the Class A shares (GOOGL) by 259% (an addition of 5,210,434 shares).
Perhaps the biggest catalyst driving this buying activity was a September 2025 federal court ruling that Alphabet wouldn't have to sell its Chrome browser. This significant antitrust litigation win for Alphabet removed years of gray clouds and allowed investors to refocus their attention on the company's rapidly growing sales and profits.
NASDAQ: GOOGL
Key Data Points
Alphabet's foundation continues to be its advertising channels. Google accounts for approximately 90% of global internet search share, while Alphabet-owned YouTube is the second-most-visited social media site in the world. Alphabet is a go-to for businesses looking to target their message(s) at consumers, which affords the company exceptional ad-pricing power.
At the same time, Alphabet is ideally positioned to take advantage of the AI revolution. Google Cloud is the No. 3 cloud infrastructure service platform globally by total spend. The incorporation of generative AI solutions for its clients is accelerating Google Cloud's growth rate beyond 30% and turning this operating segment into nothing short of a cash cow.
Laffont is likely also impressed with Alphabet's pristine balance sheet. This is a company that closed out September with $98.5 billion in combined cash, cash equivalents, and marketable securities, and has generated over $112 billion in net cash from its operating activities through the first nine months of 2025. It can comfortably make aggressive investments in game-changing technologies without disrupting its foundational operations.
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Broadcom
A second member of the trillion-dollar club that billionaire Philippe Laffont can't stop buying is networking specialist Broadcom (AVGO +1.50%). Based on 13Fs, Laffont has purchased shares of Broadcom in each of the first three quarters of 2025:
- Q1 2025: 45,909 shares purchased
- Q2 2025: 2,075,267 shares purchased
- Q3 2025: 120,052 shares purchased (5,767,559 total shares held)
Coatue's billionaire investor doesn't shy away from next-big-thing investment opportunities, such as artificial intelligence. While most investors have focused their attention on premier graphics processing unit (GPU) company Nvidia, Laffont appears to favor AI networking solutions. Broadcom's data center solutions can connect tens of thousands of GPUs to maximize their compute capabilities and minimize tail latency, which is important for software and systems making accurate, split-second decisions.
NASDAQ: AVGO
Key Data Points
In addition to its AI networking chops, Broadcom is being relied on by a select group of hyperscalers for its specialty chips in enterprise data centers. Its application-specific integrated circuit (ASIC) technology should be its foundational growth driver for the foreseeable future.
However, Laffont likely recognizes that Broadcom is much more than just an AI stock. Although its AI networking and custom ASICs are driving most of its growth at the moment, it's still a key player in wireless chips and accessories for smartphones, as well as for Internet of Things devices.
Microsoft
The third trillion-dollar stock that Coatue Management's billionaire chief has been buying with regularity of late is his fund's second-largest holding, Microsoft (MSFT +0.93%). Laffont oversaw the addition of 663,073 shares of Microsoft during the second quarter and the purchase of 710,653 more shares in the third quarter, bringing the total shares held to 4,643,050 (as of Sept. 30).
As should be no surprise, AI is likely influencing at least some of this optimism from Coatue's lead investor. Microsoft's Azure slots in as the world's No. 2 cloud infrastructure service platform by total spend, just ahead of Google Cloud. Microsoft is leaning into generative AI and large language model solutions to accelerate Azure's year-over-year growth rate to nearly 40% on a constant-currency basis.
NASDAQ: MSFT
Key Data Points
But what many investors often overlook is that its legacy segments still play an important role in its long-term success. Even though core segments, such as Windows and Office, are no longer the growth stories they once were, they still generate high margins and abundant operating cash flow. For instance, Windows is still the dominant global operating system for desktops and laptops. The cash flow provided by these legacy segments allows Microsoft the luxury of investing in high-growth initiatives.
Keeping with the theme, Microsoft often has more cash than it knows what to do with. It ended September with $102 billion in combined cash, cash equivalents, and short-term investments, and it generated a shade over $45 billion in net cash from its operations in its fiscal first quarter of 2026 (ended Sept. 30). Microsoft uses its excess capital to pay dividends, buy back its common stock, and make needle-moving acquisitions.
The final lure for Laffont may have been Microsoft's valuation. As of this writing, shares of Microsoft can be purchased for approximately 25 times forward-year earnings. This represents a 16% discount to its average forward earnings multiple over the last five years.
