Watching what billionaires are doing is simply the 1st step of a bigger funding course of.
There are over 2,900 individuals on the earth with a web price of over $1 billion, in line with the World’s Billionaires Record from Forbes. Some construct wealth by working a enterprise, and others simply permit belief fund managers to construct wealth for them. However most of the world’s billionaires proceed to develop their wealth by means of investing in shares.
Amongst them are Warren Buffett, Invoice Ackman, and David Tepper. Let us take a look at one inventory every of those buyers has purchased lately.
Picture supply: Getty Photographs.
1. Warren Buffett
Warren Buffett grew to become CEO of Berkshire Hathaway by means of investing. And after taking on the corporate, he continued to spend money on shares with the corporate’s money. That is continued for many years now, permitting Buffett’s web price to climb to over $150 billion right now. And in latest months, Buffett’s Berkshire has been shopping for shares of Domino’s Pizza (DPZ -2.05%).
Buffett’s prime rule for investing is: “By no means lose cash.” And I imagine Domino’s Pizza inventory will adhere to this rule over the long run. Here is why.
Domino’s is the world’s largest pizza chain. But it surely principally franchises its eating places. The corporate operates an enormous provide chain on behalf of its franchisees, which is a giant motive they will run their eating places profitably. And for its half, Domino’s makes high-margin income from franchise charges.
For my part, Domino’s measurement and provide chain are aggressive benefits. The enterprise seemingly will not battle with profitability, and administration makes use of the earnings to reward shareholders with inventory buybacks and a dividend that routinely goes up.
Domino’s has underperformed the S&P 500 in recent times and will battle to outperform in coming years. However it should seemingly enhance in worth over the long run, which is why it follows Buffett’s prime rule.
Berkshire did not buy many shares of Domino’s in the latest quarter. However its stake did enhance, and it now holds over 2.6 million shares of the pizza chain.
2. Invoice Ackman
Earlier than he was well-known, Invoice Ackman was finding out Buffett’s investing philosophy to study what he might. Contemplating Ackman’s web price is over $9 billion right now, I might say it labored out fairly nicely. And within the second quarter, he made an funding in Amazon (AMZN 0.29%) that he believes can carry his web price increased nonetheless.
It is onerous to argue in opposition to an funding in Amazon inventory. Its relevance to shoppers as the biggest e-commerce firm on the earth is unimaginable to understate.
But it surely’s additionally majorly essential to companies as nicely. Third-party sellers attain prospects with Amazon’s market, advertisers can discover new prospects with its promoting slots, and firms can get a tech improve through the use of the instruments and merchandise on Amazon Internet Companies (AWS).
Particularly with AWS, Amazon has a money cow that may reward shareholders for years to return. During the last 12 months, this cloud-computing division has generated over $110 billion in web gross sales and has earned the corporate virtually $43 billion in working revenue. It is an enormous revenue stream for the corporate that ought to solely proceed for the long run, particularly with drivers similar to synthetic intelligence (AI) nonetheless ramping up.
Ackman’s hedge fund, Pershing Sq., purchased 5.8 million shares of Amazon within the second quarter of 2025. It makes the corporate price 9% of the portfolio’s worth, demonstrating Ackman’s conviction on this inventory.
3. David Tepper
Lastly, David Tepper has a web price of over $21 billion. And his hedge fund, Appaloosa Administration, has been busy shopping for shares of Vistra (VST 2.86%). This was once a more-sleepy inventory. But it surely’s been a prime performer in recent times resulting from surging demand for electrical energy.
Power shares similar to Vistra did not see a lot motion for some time due to the low development in electrical energy consumption within the U.S. However there are developments that at the moment are catalyzing development higher than something within the final 20 years. For simply a few examples of what is driving development, administration on a latest convention name stated, “Hyperscalers proceed to spend money on AI and knowledge heart infrastructure,” and these items are power intensive.
The dialog relating to nuclear power is heating up as buyers marvel what’s going to meet rising power demand. However whereas many buyers are specializing in nuclear start-ups, Vistra already produces nuclear energy in addition to producing electrical energy from quite a lot of different sources.
To be clear, Tepper’s Appaloosa hasn’t bought any shares of Vistra for the reason that fourth quarter of 2024. The truth is, it was a vendor within the two most up-to-date quarters. That stated, it was among the many prime 100 shares that have been being purchased by hedge funds within the second quarter of 2025, in line with the web site HedgeFollow. And Tepper’s place continues to be substantial contemplating it is valued at roughly $350 million.
Play your personal recreation
Buffett, Ackman, and Tepper have made some huge cash by investing in shares, and proper now every might make much more cash if shares of Domino’s Pizza, Amazon, and Vistra go up.
Nevertheless, readers ought to do not forget that all buyers have totally different monetary wants, objectives, and time horizons. Subsequently, no person ought to blindly copy one other investor’s selections, anticipating issues to work out wonderful. On the contrary, all buyers ought to perceive the businesses they’re invested in and may make their very own selections.
what billionaires are shopping for is an efficient approach to generate funding concepts — and Domino’s, Amazon, and Vistra are good concepts, in my opinion. However arising with an thought is simply step one in an extended course of of making an funding thesis earlier than shopping for shares.
