The end of the year is just around the corner, and with less than four weeks left in this year, Nasdaqis down nearly 28% year-to-date and will end 2022 in the red.
However, this has not deterred billionaire investors from scooping shares in some of the top Nasdaq stocks at discounted prices. We know that markets are followed by bull markets and prove to be good buying opportunities.
Here are the two top Nasdaq stocks billionaire money managers are buying dips in during the current market plunge.
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1. Bill Miller-T. Rowe Price
It’s hard to find an investor with a better track record than Bill Miller of Miller Value Partners. Miller previously ran Legg Mason Value Trust. S&P 500 Selected as an investor for 15 consecutive years from 1990 to 2005. Amazon (AMZN -3.03%) When Bitcoin (Bitcoin -0.90%)One of Miller’s latest purchases in the last quarter is an interesting one. Asset manager. T Rowe Price (Trow -1.86%).
The investment manager’s shares are down about 35% year-to-date as a stock market crash eroded the value of T. Rowe Price’s assets under management and led to the outflow of the 85-year-old company. But T. Rowe Price stands to benefit as the market recovers. Assets under management will increase and more money will flow in.
Miller is probably aware of this, and has already benefited from the market recovery over the past two months, as T. Rowe’s stock is up about 20% from Miller’s reported purchase price of $93.53. increase. The stock still looks attractive after this rally. At just 14x price-to-earnings, he yields 3.8%.
T. Rowe Price is a Dividend Aristocrat with 36 years of annual dividend growth. The company has a potentially lucrative growth opportunity in one of the industry leaders Target Date Retirement Fund and is so exposed to growth that it could see a very big upside as growth stocks rebound. is likely to be seen.
With a reasonable valuation and a proven dividend track record, investors should rather than follow Miller’s lead to T. Rowe Price by paying investors generous dividends while the market rebounds. You could do much worse.
2. David Einhorn – Intel
It’s hard to find a less loved stock than intel (INTC -1.95%) recently. The once-blue-chip company is down 43% year-to-date, and what’s worse, investors perceive it to be lagging behind its competitors. Advanced Micro Devices (AMD -4.55%) In the major markets of the semiconductor field.
But value investors like Einhorn seem to be looking for bargains given Intel’s sluggish valuation. In the third quarter, Einhorn’s Greenlight Capital bought back Intel. Intel owned it earlier this year, but sold it in the second quarter. Einhorn may have bought it back because he felt the stock had fallen below its true value. After this year’s crash, Intel’s stock is cheap, trading at just nine times its P/E ratio. The stock yields close to 5%.
The silver lining in the bad news is that Intel recognizes that things need to change. Management plans cost-cutting measures that will save him $8 billion to $10 billion by 2025. The company spun off. mobile eye (MBLY -3.21%) We are restructuring our position as a foundry for other chip companies to focus on our core business. Intel is in the early stages of this turnaround plan, and while the capital-intensive process will consume cash in the short term, the company will see his spending ease and achieve double-digit revenue growth by 2025. I predict.
It’s still a long way off, but Einhorn seems happy to buy stock now that things look grim, waiting to be rewarded if Intel’s turnaround bears fruit. We’re not sure Intel can pull this off, but the low valuation and high dividend yield help de-risk this potentially lucrative investment.
We can all learn from billionaire wealth managers like Miller and Einhorn. They know it’s time to buy when fear is in the air, and they’re taking advantage of the current Nasdaq market to buy shares of these blue chip stocks at discounted prices.
In Miller’s case, an investment in T. Rowe Price stands to pay off when the broader market turns around, and Einhorn believes Intel could pay off big in the long run if it can execute its turnaround plan. I can do it. Both investors enjoy a decent margin of safety by investing in these beaten-down stocks at cheap valuations, all while adding in returns with big dividends.
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Michael Byrne has a position in Bitcoin. The Motley Fool has positions in and recommends Advanced Micro Devices, Amazon.com, Bitcoin and Intel. The Motley Fool’s recommended options are Intel’s Jan 2023 long call at $57.50, Intel’s Jan 2025 long call at $45, and Intel’s Jan 2025 short put at $45. The Motley Fool’s U.S. headquarters has a disclosure policy.
