Three “Trillion Dollar” Stocks to Give Your Portfolio a Boost

Billionaires are billionaires for a reason. Our global equity fund has investigated the performance of companies overseen and guided by billionaire owners since 2004 and found that they outperformed their rivals. We now invest in 115 global large-cap companies owned by the top 100 billionaires (as ranked by Forbes and Bloomberg). Each stock represents 1% of the fund and the maximum exposure to a single stock is capped at 1%. We rebalance the portfolio every January and this year we applied a new environmental, social and governance (ESG) filter that weeded out some underperforming Russian oligarchs and Chinese billionaires.

It’s been a rough two years for global equities, particularly in emerging markets, but they’ve historically been the first to bounce back. Asia is becoming increasingly important to the global economy, while Indian billionaires are flourishing, although it is difficult to invest in their companies from the UK.

A portfolio of 400 beers

Anheuser-Busch InBev (Brussels: ABI.) It has more than 400 beers, including Budweiser, Corona and Stella Artois. The lockdowns hit business hard, but in 2021 InBev’s sales in North America, which account for a third of revenue, recovered 4%. Asia-Pacific experienced 21% growth. Total revenue growth was up $6 billion over the year and it’s now summer in the northern hemisphere.

The suspension of the group’s license to brew Budweiser in Russia is unlikely to affect the top line. The group also converts the by-products of the brewing process into plant-based proteins for sale to the food industry, reinforcing its environmental credentials.

China’s leading electric vehicle manufacturer

Shenzen-based car manufacturer and battery group BYD Company (Hong Kong: 1211) it just overtook Tesla in global electric vehicle (EV) sales. It also overtook South Korea’s LG as the world’s second-largest producer of batteries for electric vehicles. Part of its stock’s stellar performance in the past year (it’s up 40%) is because it avoided the Covid-19 lockdowns that hampered its rivals.

Chemist Wang Chuanfu’s company lives up to its full name: “Build your dreams.” He began manufacturing rechargeable nickel cadmium batteries in 1995 before moving on to cars, buses, trucks and bicycles. In 2008, Warren Buffett bought 10% of BYD and enjoyed a 33x profit by July 2022. While speculation that his stake is now up for sale has weighed on the stock price, BYD is the leader in China’s rapid transition to electric vehicles and is gearing up for a potentially profitable push into foreign markets.

Taking advantage of natural stupidity

Invest alongside Carl Icahn, who owns 88% of ICahn Companies (New York Stock Exchange: IEP)It’s not for the faint of heart, but it has been very rewarding. An early activist investor, Icahn has been shaking up big American corporations since the 1980s by buying big stakes and urging management to make changes to benefit shareholders.

Icahn Enterprises has investments in sectors including energy, automotive, food packaging, metals, real estate and home fashion, but the balance shifts each time potential value is discovered. He said that he makes money by “studying natural stupidity”. His personal wealth has increased more than 20% since the pandemic, making it difficult to question his judgment.

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