Tesla, Inc. (NASDAQ: TSLA) has secured its place as one of the top stocks to invest in, according to a recent compilation of the 30 Best Stocks to Invest In According to Billionaires. Billionaires and top hedge fund managers dominate the market, making significant investments in companies with strong track records, exceptional performance, and potential for growth. These investors, with substantial capital at their disposal, tend to focus on established companies that show resilience, rather than betting on underperforming stocks.
Stock Market Performance in 2025 So Far
The stock market has had an eventful start to 2025. The S&P 500 has reached all-time highs, delivering over 20% returns for the second consecutive year following the post-COVID recovery. However, the market faces some uncertainties, especially after Warren Buffett, the billionaire investor and CEO of Berkshire Hathaway, made headlines by selling a record $134 billion of net stock in 2024. Buffett’s actions have raised concerns among investors and analysts, as historically, such moves by his firm have often been followed by below-average market performance. This has led many to believe that 2025 could experience some stock market underperformance.
Further compounding the uncertainty, the release of DeepSeek, an advanced Chinese AI model, in January 2025 led to a significant sell-off, wiping away nearly $1 trillion from the U.S. stock market. The market’s volatility continued in March 2025, as President Donald Trump’s tariff policy came into play, imposing 25% tariffs on Canada and Mexico, which many believe could contribute to a negative feedback loop in the economy.
In addition to these concerns, the S&P 500 has been underperforming its global counterparts in 2025, with equity indexes in China, Europe, Canada, and Mexico all outperforming it. As of March 4, 2025, the S&P 500 has dropped nearly 1.90% year-to-date, while the NASDAQ 100 index has experienced a sharper decline of over 4%.
Billionaire Insights on the Market
Despite these macroeconomic headwinds, the market still sees significant moves from influential investors. Leon Cooperman, a billionaire investor, appeared on CNBC’s Squawk Box and discussed President Trump’s focus on reducing the deficit, although Cooperman expressed concerns about the destabilizing manner in which the policies are being implemented. Cooperman suggested that reducing the deficit is a step in the right direction but needs to be done carefully to avoid destabilizing the broader economy.
Looking ahead, Barry Knapp from Ironsides Macroeconomics anticipates that the Federal Reserve will cut interest rates by a full percentage point in 2025, with the first cut expected in May. Knapp believes that for the economy to transition into a more favorable environment for businesses, there needs to be a shift from government spending to capital spending.
Methodology: Best Stocks According to Billionaires
To compile the list of 30 Best Stocks to Invest In According to Billionaires, the research team analyzed Insider Monkey’s exclusive database of billionaire stock holdings. The selection was based on the highest number of billionaire investors holding a stock, as of Q4 2024. In cases where stocks had the same number of billionaire investors, the total value of billionaire holdings was used as a secondary metric to rank them. The stocks were then listed in ascending order based on these criteria.
Tesla, Inc. (TSLA), with its strong performance and market presence, has solidified its position as one of the top stocks favored by billionaires, making it a prominent choice for investors looking to ride the wave of innovation in the electric vehicle and energy sectors.
You Might Be Interested In:
