Yahoo Finance Stanley Druckenmiller's Secret Sauce: The Two Stocks Dominating a Quarter of His Three Billion Dollar Portfolio
Stanley Druckenmiller is one of the most successful investors of all time, with a net worth of nearly $6.2 billion. Before starting to invest his funds through his family hedge fund, Duquesne Family Office, he closely worked with George Soros and played a pivotal role in Soros' bet against the pound, raking in approximately $1 billion in total profits back in 1992.
As of Dec. 31, 2023, Druckenmiller holds 50 stocks in his portfolio, valued at roughly $3.11 billion. In the last quarter of 2023, Duquesne Family Office’s portfolio value rose by 2.1%. Over a third of Druckenmiller's total portfolio is invested in just three large-cap stocks.
Microsoft
Microsoft Corp. (NASDAQ:MSFT) is one of the most promising tech giants, as the company's strategic investments in the field of generative artificial intelligence (AI) and gaming are paying off. The company has a sizable stake in the viral generative AI platform ChatGPT creator OpenAI, which generated $1.6 billion in annual revenues in 2023, less than a year since its launch. OpenAI is poised to generate $2 billion in annualized revenues.
Shares of MSFT have surged by over 10% so far this year, outperforming the tech-focused Nasdaq Composite Index's 7.9% gains over this period. Druckenmiller holds approximately 1.1 million of MSFT stock (as of December 31), accounting for roughly 13.1% of his total portfolio.
The company also invested 15 million euros in French startup Mistral AI, which is widely regarded as a major competitor to OpenAI. While the investment is currently under scrutiny from the European Union because of potential antitrust practices, the stake in Mistral AI could pivot Microsoft to become the biggest player in the generative AI space.
Both Wedbush and Barclays currently have an Outperform rating on MSFT with a price target of $475, indicating a potential upside of nearly 15%. Truist Securities also has an Outperform rating on the Magnificent Seven stock with a price target of $600, reflecting a potential upside of nearly 50%.
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Coupang
Coupang Inc. (NYSE:CPNG), one of the largest retail companies in the world, is Druckenmiller's second-largest holding. The billionaire investor owns approximately 22.91 million shares of CPNG through the Duquesne Family Office, accounting for 11.93% of his total portfolio. CPNG stock increased by over 16% so far this year.
The company's strong financials, despite macroeconomic headwinds, make it a promising retail stock, as Barclays analyst John Shao issued an Overweight rating on Coupang. Shao also issued a price target of $25 on the stock, indicating a potential upside of over 32%. Deutsche Bank analyst Peter Milliken also issued a Buy rating on CPNG stock last month with a price target of $21, indicating a potential upside of over 11%.
"Our accelerating growth in revenues, active customers and WOW members reflect our unrelenting focus on creating ‘wow' for our customers across selection, price, and service,” said Bom Kim, Founder and CEO of Coupang, in the latest earnings release.
The company's total revenues increased 20% year-over-year to $24.4 billion on a forex-neutral basis in fiscal 2023. In addition, Coupang's gross profit increased 31% from the same period the prior year to $6.2 billion in 2023.
Analysts expect the company's quarterly revenues to grow 17.8% year-over-year to $6.83 billion in the ongoing quarter ending March. The consensus EPS estimate of $0.07 for the fiscal 2024 first quarter indicates a 40% improvement year-over-year. Wall Street analysts expect Coupang's bottom line to grow at a compound annual growth rate (CAGR) of 90.9% over the next five years.
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