The first half of 2023 has been a busy time for some of the world’s richest people, who have unloaded shares worth more than $9 billion combined in the U.S. market. While some of them are cashing out to buy sports teams, fund new ventures or diversify their portfolios, others are betting big on the opportunities presented by artificial intelligence (AI).
One of the most bullish investors on AI is Steve Cohen, the founder of Point72 Asset Management and owner of the New York Mets. Cohen, who generated personal capital gains of over $1.7 billion from his hedge fund last year, said that investors’ excessive concern about a potential market decline is causing them to overlook the significant potential for growth and success.
“I believe that being able to recognize and take advantage of this big wave that is coming is going to be very important,” Cohen said in a Bloomberg interview on May 17. He added that AI will likely create new jobs and improve profit margins, which would ease the inflationary pressure and boost the markets.
Cohen’s hedge fund acquired 1182 new stocks, sold off 469 stocks entirely, made additional purchases in 368 stocks, and reduced holdings in 505 stocks in Q1 2023. Some of the popular stocks he dumped include Tesla, Disney and Apple.
On the other hand, some of the stocks he added to his portfolio are Nvidia, a graphics processing unit (GPU) and semiconductor solutions specialist that controls almost a fifth of the worldwide GPU market and 80% of discrete graphic cards. Nvidia’s GPUs are used for everything from cryptocurrency mining to gaming to AI applications.
Another stock that Cohen and other billionaire money managers want to own in 2023 is IQVIA Holdings, a leading provider of advanced analytics, technology solutions and contract research services to the life sciences industry. IQVIA leverages AI and machine learning to help its clients accelerate clinical development and commercialization.
However, not all billionaires are optimistic about AI. Larry Ellison, the co-founder of Oracle and one of the top three sellers of the year so far, has been critical of AI hype and said that most of the current applications are “just nonsense.”
Ellison sold $2.1 billion worth of Oracle shares in Q1 2023, followed by Walmart heir Rob Walton ($1.4 billion) and Airbnb cofounder Joe Gebbia ($890 million). Walton bought a football team with his proceeds, while Gebbia acquired a minority stake in an NBA team and founded a solar-powered accessory dwelling unit company.
Whether they are selling or buying, these billionaires are shaping the future of technology with their stock moves. As Cohen said, “Being overly preoccupied with the probability of a recession might cause them to miss out on the substantial potential for growth and success.”
Relevant articles:
– These Billionaires Sold The Most Stock So Far In 2023, Forbes, Jul 2, 2023
– 10 Stocks to Sell in 2023 According to Billionaire Steve Cohen, Yahoo Finance, May 18, 2023
– 5 Stocks Billionaire Money Managers Want to Own in 2023, The Motley Fool, Dec 23, 2022
– 10 Best Value Stocks to Buy in 2023 According to Billionaire Mario Gabelli, Insider Monkey, May 19, 2023