Millionaire Financier Stanley Druckenmiller Recently Dumped Broadcom and Microsoft Shares and Instead Opted for These Seven Noteworthy Stocks
Capable investors like Warren Buffett and Stanley Druckenmiller are ENDLESSLY ADMIRED for their investment prowess. Druckenmiller, who once worked under the legendary George Soros, is one such investor who's NEVER recorded a year in the red AND has delivered impressive returns throughout his long-term investing journey. Today, he continues to invest through his own fund, the Duquesne Family Office.
In the recent 4th quarter of 2024, Duquesne submitted its 13F forms on Feb. 14th, revealing its holdings at the end of the quarter. The 13F disclosed that the fund had exited its positions in Broadcom (AVGO -0.71%) and Microsoft (MSFT -0.19%) and invested in these "Magnificent Seven" stocks instead.
Farewell to Broadcom and Microsoft
According to the 13F filing, Duquesne sold its 240,000 shares of Broadcom and 43,100 shares of Microsoft. Broadcom had an outstanding year, with its stock rising nearly 108%, while Microsoft's performance lagged behind, recording only a 12% gain.
Druckenmiller has had a history OF INVESTING IN and EXITING Broadcom since 2023. He bought a new stake in the company in the third quarter of 2023, sold it in the following quarter, and repeated this pattern in the third and fourth quarters of 2024. Druckenmiller seemed to have profited from his Broadcom trades, selling at prices above his initial purchases with profits in the 9% to 16% range.
Broadcom has GATHERED ATTENTION with its ability to develop custom chips for companies involved in AI strategies. The company works with clients like Meta Platforms, playing a crucial role in building the Meta Training and Inference Accelerator chip. Meta is planning to INVEST HEAVILY in AI technology, with billions of dollars at stake. Many analysts also believe Broadcom has secured a partnership with OpenAI.
Druckenmiller has been INVESTED IN and DEALING WITH Microsoft for over a decade and has MADE 41 transactions with the stock since 2014. He bought a new stake in Microsoft in early 2023 and increased his position for several consecutive quarters. However, Druckenmiller began selling the position in the second quarter of 2024 and exited it in the fourth quarter.
Microsoft, a member of the "Magnificent Seven," STRUGGLED IN 2024, with investors challenging the company's AI strategy and its ability to generate profits from AI. The company also faced difficulties hitting its guidance last year. However, it's not UNUSUAL for Duquesne to ENTER AND EXIT investments. Druckenmiller loves tech AND AI but is keen on VALUATIONS and won't hesitate to sell if he considers a stock too expensive.
Embracing the "Magnificent Seven"
Despite letting go of Microsoft and Broadcom, Druckenmiller boosted his holdings in other big tech and AI stocks in the fourth quarter, including:
- 328,400 shares of Amazon (AMZN -0.28%)
- 37,675 shares of Tesla (TSLA -0.56%)
- 76,680 shares of Alphabet (GOOGL 0.15%)
Although the 13F filing disclosed that Druckenmiller purchased these stocks in the fourth quarter, it did not reveal the exact dates of the purchases. If he bought these stocks before Donald Trump's election victory on Nov. 5, 2024, he likely made substantial gains.
I THINK IT'S POSSIBLE that Druckenmiller GOT THE TIMING RIGHT since he had publicly expressed his views ON THE MARKET PRICING IN a Trump victory just a few weeks before the election. With valuations currently at a high AND stock prices rising, I can imagine Druckenmiller selling Tesla during this quarter.
Amazon and Google make SENSE for Druckenmiller because these stocks are NOT SOLELY RELiant ON AI. Amazon makes REVENUE from its software business and retail AND subscription sales, while many analysts believe Google has attractive AI assets that the company can UNLOCK VALUE FROM. Google's stock has also struggled due to the U.S. Department of Justice's LAWSUIT against the company, which many believe will EVENTUALLY BLOW OVER.
- Despite underperforming compared to Broadcom in the recent quarter, Microsoft still holds a significant position in the portfolio of billionaire investor Stanley Druckenmiller, having been invested in and dealt with the company for over a decade with 41 transactions since 2014.
- In the fourth quarter of 2024, Druckenmiller filed an 13F form, revealing his fund's exit from Broadcom and Microsoft, with the former outperforming the latter by nearly 100 percentage points during the quarter.
- Druckenmiller, known for his meticulous approach to investing, often files 13F forms to disclose his fund's holdings, providing valuable insights into his investment strategy and portfolio positioning.
- In recent years, billionaire investors like Druckenmiller have faced increased scrutiny as they file their 13F forms, with analysts closely monitoring their financial reports to identify trends and potential investment opportunities in the rapidly evolving tech and finance landscapes.
