Multiple top investors are aggressively buying Amazon (AMZN), betting on its future growth in AI, cloud, and a new push into grocery delivery. For a value-oriented opportunity, consider United Health (UNH), which has attracted new investments from both Warren Buffett and Michael Burry following a significant stock price decline. A proven long-term strategy is to invest in high-quality "compounder" companies with strong competitive advantages. Recent buys in this category include additions to positions in Microsoft (MSFT), Visa (V), and the technologically dominant GE Aerospace (GE). Similarly, investor Pat Dorsey showed high conviction by doubling his position in semiconductor equipment leader ASML (ASML).

Amazon (AMZN)

• Amazon was highlighted as one of the most popular buys amongst super investors in the last quarter.
• Bill Ackman (Pershing Square) purchased a significant position, and is already up around 15% on the investment.
• Value Act Capital made a massive addition, moving 13% of their portfolio into Amazon, making it their top holding.
• Altarock Partners also bought a large amount of Amazon, increasing their position by 20%. They funded this by selling their shares in Google.
• Tiger Global also added to its Amazon position.
• The podcast host is personally very bullish, holding it as a 35% position in one of his portfolios.
• The host believes the stock has "a lot more to go" despite its recent run-up to $230.
• Multiple growth avenues were mentioned:
  • Artificial Intelligence
  • Robotics
  • Online Retail & Grocery Delivery
  • Logistics
  • Cloud Hosting (AWS)
  • Satellite Internet (Project Kuiper)
• A key new development is Amazon's push into grocery delivery. They are reportedly trying to take market share from competitors like Walmart.
  • An analyst noted Amazon did $100 billion in groceries and household essentials last year and has an opportunity to "turbocharge that growth."
  • They can cross-sell groceries to existing customers during checkout for same-day delivery without extra fees or tipping, which is a major advantage over services like Instacart.

Takeaways

• There is a strong bullish consensus on Amazon among several high-profile growth investors, who initiated or added to their positions last quarter.
• The investment thesis is not just about its current dominance but its numerous future growth drivers, particularly in AI, cloud, and now grocery.
• Despite the stock's recent strong performance, the sentiment from the podcast suggests that these super investors see significant long-term value and growth potential remaining.
• The move into grocery is seen as a "Trojan horse" to significantly increase revenue, as Amazon currently only has 5% of this market.

United Health Group (UNH)

• Warren Buffett's Berkshire Hathaway made a new, notable investment in UNH.
• The news of Buffett's purchase was a huge bullish catalyst, causing the stock to rally around 12% on the day the news broke.
• Buffett's reported purchase price was around $311, which was significantly higher than the lows the stock later reached (low $200s). The host speculates that Berkshire may have bought more as the price fell.
• Michael Burry ("The Big Short") also bought UNH, specifically through call options, making it a top buy and roughly 18% of his reported portfolio.
• The investment thesis is a deep value play. The company's stock plummeted because it underpriced its insurance policies to gain market share, and members utilized their coverage more than expected, hurting profits.
• The host believes this is a temporary issue. Over time, the pricing mistakes should correct, and earnings should recover to previous levels, leading to a stock price recovery.
• The host views this as a "very fitting" buy for Berkshire, given their expertise in insurance and preference for value investments.

Takeaways

• Two legendary value investors, Warren Buffett and Michael Burry, have both taken bullish positions in UNH, signaling they believe the stock is significantly undervalued.
• The investment opportunity is based on a turnaround story. Investors are betting that the company's current earnings problems are temporary and that its strong market position will allow it to recover profitability over the next few years.
• This is a value-oriented play, not a growth one. The bet is that the stock will return to a more normal valuation as the business stabilizes.

FICO (FICO)

• Dev Cantasaria (Valley Forge Capital) has an enormous conviction in FICO, holding it as a 31% position in his portfolio.
• The stock has dropped dramatically from its high of over $2,100 per share due to regulatory scrutiny and concerns about competition from VantageScore.
• Despite the significant price drop and negative sentiment, Dev Cantasaria did not sell any of his FICO shares. He only made one minor trade in his entire portfolio (trimming Intuit).
• The host interprets this lack of selling as a sign of continued belief in the company's long-term fundamentals. If he thought the business was deteriorating, he would have sold.
• Why didn't he buy more on the dip? The host explains that Cantasaria runs a fully invested fund (less than 1% cash), so he likely had no spare capital to deploy without selling other core holdings.

Takeaways

• FICO represents a high-conviction, contrarian investment. While the market is fearful of regulatory and competitive risks, at least one "super investor" is holding firm.
• The key debate for investors is whether the threats to FICO's business model are real and permanent, or if the market is overreacting.
• Cantasaria's decision to hold through the volatility demonstrates a "buy and hold" strategy focused on long-term business quality over short-term price movements.

Google (GOOGL/GOOG)

• There was mixed activity from super investors regarding Google.
• Bill Ackman purchased even more Google, showing his bullish conviction.
• Chris Hohn (TCI), a high-quality investor, considers Google his "most risky position," which speaks to the overall quality of his portfolio. He slightly trimmed his Google stake by 0.32%.
• Altarock Partners sold a lot of their Google position, seemingly out of fear during a period of uncertainty about AI's impact on search. They rotated this money into Amazon.
• The host notes that the fears about Google's search business seem to have been overblown, as management's view that search continues to grow appears to be correct so far.

Takeaways

• Super investors are not in universal agreement on Google. While some see value and are adding, others are trimming or selling due to perceived risks from AI competition.
• The narrative that AI would destroy Google's search business has not yet played out, and the stock has recovered well.
• For investors, Google remains a core holding for many, but it comes with a higher level of debate and perceived risk than it has in the past.

Amazon, Microsoft, Visa, and other "Compounders"

• Chris Hohn (TCI Investments), known for his incredible performance, runs a portfolio of what he calls "indestructible, wide moat monopolistic companies."
• His portfolio includes Google (GOOGL), Moody's (MCO), Visa (V), Microsoft (MSFT), GE Aerospace (GE), and railroads like Canadian Pacific (CP).
• His strategy involves doing very little trading. In the last quarter, his only significant moves were slightly trimming railroads and adding small amounts to S&P Global (SPGI), Visa (V), and Microsoft (MSFT).
• This "do nothing" approach has resulted in his portfolio being up 24% year-to-date, crushing the market.
• GE Aerospace (GE) was highlighted as a company with a technological moat similar to ASML, creating products so complex that few can compete.
• Pat Dorsey also showed conviction in high-quality compounders, doubling his position in ASML (ASML) to a 10% portfolio weight and adding to Booking Holdings (BKNG).

Takeaways

• A successful strategy highlighted is to buy extremely high-quality, monopolistic companies and hold them for the long term with minimal trading.
• Companies like Microsoft, Visa, Moody's, GE Aerospace, and ASML are seen as "bulletproof" investments with durable competitive advantages.
• Investors can achieve market-beating returns by simply identifying these top-tier businesses and having the patience to let them compound over time, rather than constantly trading.

Other Notable Trades

• Apple (AAPL): Warren Buffett's Berkshire Hathaway continued to trim its stake. The reasoning is likely due to the position's enormous size and slowing growth at Apple, allowing them to reallocate capital to better opportunities like UNH.
• Intuit (INTU): This was a popular stock. Terry Smith (Fundsmith) more than doubled his position, making it a key buy. In contrast, Dev Cantasaria trimmed his Intuit stake, likely to raise cash as it was his best-performing stock.
• PayPal (PYPL): Pat Dorsey sold his position. The host agreed with the sale, describing PayPal as a "generic payment company" with enormous competition and lacking the powerful network effects of Visa or MasterCard.
• Michael Burry's Portfolio: Burry's trades were eclectic and value-oriented, buying what he perceives as cheap. Besides UNH, he made bullish call option bets on Lululemon (LULU) and also bought positions in Chinese retailers JD.com (JD) and Alibaba (BABA), as well as ASML. His portfolio changes very frequently.