Yahoo Finance Billionaires Are Selling NVIDIA and Picking up This TSX Stock Instead
Written by Amy Legate-Wolfe at The Motley Fool Canada
Recently, a few billionaire investors decided to cash in on their NVIDIA (NASDAQ:NVDA) shares, riding the wave of the company’s booming success in the artificial intelligence (AI) market. Big names like Steve Cohen of Point72 and George Soros have trimmed their NVIDIA holdings, likely locking in some profits after the stock’s massive run-up this year. It seems they’re taking a cautious approach, pocketing gains while still keeping an eye on future opportunities in the AI space. It’s a classic case of “sell high and enjoy the ride!” But what are they buying instead?
Why the sell?
Billionaires selling NVIDIA might seem surprising at first, given the company’s skyrocketing success in the AI world, but there’s often a method to their madness. One reason could be that they’re simply taking profits after the stock’s massive rally. With NVIDIA reaching record highs, some investors prefer to cash out while the market’s hot, securing their gains rather than risking a future dip. After all, even in a winning game, it’s smart to occasionally pocket some chips.
Another factor could be diversification. These billionaires often hold large, varied portfolios, so selling NVIDIA might be a way to balance things out or explore other opportunities. AI is huge, but no one likes putting all their eggs in one basket. It’s not that they don’t believe in NVIDIA’s long-term potential. They just want to spread the love to other promising sectors. In the end, it’s about playing it safe and staying ahead of the game.
What they’re buying
Lately, some billionaires have been eyeing Brookfield Asset Management (TSX:BAM) on the TSX, and it’s been making quite a splash. Brookfield, known for its focus on alternative investments like real estate, infrastructure, and renewable energy, has seen some serious love from high-profile investors. With its diversified portfolio and savvy management, it’s a stock that offers stability and long-term growth potential — something billionaires are always keen on. Plus, as the world shifts towards sustainable energy, Brookfield’s renewable energy investments look like a smart play for the future.
What’s appealing is that Brookfield’s business isn’t just about the here and now. It’s about creating value over the long term, which fits the mindset of billionaire investors who think in decades, not just months. They’re likely picking it up because they see it as a steady performer with opportunities in growth sectors like green energy and infrastructure. In a market full of uncertainty, BAM gives off those “safe and solid” vibes, making it a tempting buy for those looking to keep their wealth growing.
Should you buy?
BAM has been catching the eyes of big investors lately, and it’s easy to see why. With a 52-week high of $64.91 and a current market cap of $26.88 billion, BAM continues to deliver steady returns. The stock is up nearly 50% over the past year, thanks to its strong management and diversified portfolio in alternative investments like infrastructure and renewable energy. Billionaires are attracted to its long-term growth potential, especially with forward earnings showing a solid price-to-earnings (P/E) ratio of 25.77, signalling future profitability.
What makes BAM even more appealing is its strong dividend yield. With a forward annual dividend rate of $2.05 per share and a yield of 3.19%, it’s a stock that delivers both growth and income. On top of that, the company boasts a return on equity of 16.13%, reflecting solid management performance. Investors also appreciate its solid cash flow, with $546 million in operating cash flow and levered free cash flow at $131 million. BAM offers a mix of growth, stability, and reliable dividends — exactly what investors, including billionaires, are after in uncertain times.
The post Billionaires Are Selling NVIDIA and Picking up This TSX Stock Instead appeared first on The Motley Fool Canada.
Should you invest $1,000 in Nvidia right now?
Before you buy stock in Nvidia, consider this:
The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nvidia wasn’t one of them. The 10 stocks that made the cut could potentially produce monster returns in the coming years.
Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have $21,758.28!*
Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 31 percentage points since 2013*.
See the 10 stocks * Returns as of 9/16/24
More reading
Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Brookfield Asset Management and Nvidia. The Motley Fool has a disclosure policy.
2024
