Warren Buffett, Stanley Druckenmiller, and David Tepper Make Bold Moves in Mag-7 Stocks
In the latest 13F filings, some of the biggest names in investing have made significant changes to their portfolios, particularly in the Mag-7 stocks. Warren Buffett’s Berkshire Hathaway has cut its stake in Apple by 50%, raising concerns about the future of the tech giant. Meanwhile, Stanley Druckenmiller’s Duquesne Family Office has reduced its holdings in Microsoft and Nvidia by 64% and 88% respectively, signaling a bearish outlook on these tech giants. David Tepper’s Appaloosa Management has also shown pessimism in Mag-7 stocks, divesting a significant portion of its holdings in companies like Microsoft, Meta, Alphabet, and Nvidia.
The big players seem to be rotating their funds out of the usual names in big tech, prompting investors to question whether investing in the Mag-7 is the best choice at current valuations. With stocks trading at high multiples of their earnings and free cash flow, it’s crucial for value investors to consider whether it’s wise to follow suit and reallocate their funds.
In conclusion, while this isn’t a definitive assessment of the intrinsic valuation of Mag-7 stocks, the actions of these investment giants should not be ignored. By analyzing their moves and adjusting our own investment strategies accordingly, we can potentially protect our portfolios from any downside risk associated with these high-flying tech stocks.