4 Stocks for Billionaires and for You Too
Mark is a member of The Motley Fool Blog Network -- entries represent the personal opinion of the blogger and are not formally edited.
A recent article contained a list of the most popular stocks for billionaires and hedge funds as of the end of 2011.
I think that most of the stocks would also work well for the other 99.99% of the population.
The top 4, all tech stocks, are:
1. Apple, Inc. (NASDAQ: AAPL)
2. Google (NASDAQ: GOOG)
3. Qualcomm, Inc. (NASDAQ: QCOM)
4. Microsoft Corp. (NASDAQ: MSFT)
Everyone knows Apple, the iconic manufacturer of the popular family of "iDevices." The company has an almost cult-like following among the masses of people that buy them, talk about them, blog about them and are obsessed by them. Based upon the success of the personal music player iPod, the iPhone and the iPad tablet, Apple has reported spectacular revenue and earnings over the last 10 years. The company is now the most valuable by market cap, worth $623 billion
It shows no sign of slowing down. Apple just released a new version of the iPhone and declared a 25% increase in the number of devices sold over the first three days compared to the previous version of the device. Reports are that a new version of the iPad, the "mini," will be announced soon. Also, sources have indicated that Apple is considering developing a game changing TV system.
AAPL Earnings Per Share TTM data by YCharts
Google developed the leading search engine in the U.S. and its operating system for smartphones, Android, has the largest market share, more than double that of Apple's iOS. Google is also developing a driver-less car. It even came in two spots ahead of Apple on a recent list of the world's most innovative companies, no small feat.
It now has the 5th largest market cap and is rapidly moving up on the list, only trailing number four by a few billion and the 3rd biggest, Microsoft, only by about $4 billion. Just two years ago, Google and Apple had about the same market cap and both were lower than Microsoft:
Qualcomm provides chips for the wireless device industry and is a key Apple supplier. The prevailing theory is that as Apple goes, so does Qualcomm. However, the company is also a key supplier to the other major players as well.
The company, formed in 1985, is considered one of the top ten semiconductor firms today. It purchased naming rights for the San Diego Chargers stadium, now called Qualcomm Stadium, in 1997. As far as I know the other companies do not have a stadium named after them.
Earnings, revenues and the stock price have all climbed over the last few years as the smartphone business in general has accelerated.
QCOM Revenue TTM data by YCharts
Another icon of the tech world is Microsoft. The software giant, responsible for the Windows operating system that runs most of the world's personal computers was once the world's most valuable company, in fact it would still hold the record today if 1999 dollars were used to calculate market cap. It lost some of its luster after the dot-com bubble burst in 2000 and during the financial crisis of 2008. However, a new version of Windows could get them going again. Revenues and earnings have been increasing for the most part over the last few years. It also pays a dividend and currently yields 3.0%.
There should be no reason the 99.99% can't buy the same stocks favored by the 0.01%. Most of the billionaires weren't always rich, they had to get there somehow. And I'm sure owning Apple, Google, Qualcomm and Microsoft didn't hurt them too much.
Mathman6577 owns shares of Apple. The Motley Fool owns shares of Apple, Google, Microsoft, and Qualcomm. Motley Fool newsletter services recommend Apple and Google. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.If you have questions about this post or the Fool’s blog network, click here for information.
