As we entered 2023, we left behind one of the most tumultuous years for financial markets in recent history. From a post-COVID gully to ongoing global crises, the year 2022 has been a rollercoaster ride for the financial world. Now, we are facing a financial world marked by high interest and lower growth, making it a tough climate for investors. However, experienced Superinvestors suggest that selecting a high-quality company is more important than ever in such tough macroeconomic conditions.
Superinvestors’ Q4 2022 Buys
In Q4 2022, some of the world’s most prominent investors made their moves in the financial markets. Let’s take a look at what they bought and why.
Amazon, leads the pack with 16 buys of the world’s most prominent investors. Google followed up with the next most purchased stocks among superinvestors in Q4 2022. Microsoft was bought by 12 superinvestors last quarter. The broader market sell-off seemed to be dragging these technology stocks down, and these long-term minded superinvestors saw an opportunity to capitalize on entering at lower valuations.
Meta investors didn’t have the greatest fourth quarter, sinking to a 52-week low of US$88.09 per share. However, the company seems to have recovered almost all of the ground it lost over the last year, with its stock shooting up over 100% since the lows of November. Superinvestors who bought Meta heavily in November are now sitting very pretty with the stock currently at over US$190 per share just a few months later.
Similar to Meta the Disney stock fell to a 52-week low of US$84 towards the end of Q4, which is a likely reason why it made its way onto this list. Lower valuations presented a tempting buy for superinvestors who are bullish on the long-term strategy for the company. Former Disney CEO, Bog Iger, returned to the top position for two years, replacing Bob Chapek. This news was well-received by most Disney shareholders as the company suffered a very turbulent few years under Chapek’s leadership.
Recap
In times of tough macroeconomic conditions, selecting a high-quality company becomes more important than ever for investors. Looking at what experienced investors buy can help us understand what they look for in the companies they invest in. The stock market is unpredictable, but the right research and analysis can help make informed investment decisions.
What can you learn from this Superinvestors update
As I have mentioned before in my Q3 article, the idea of sharing this and understanding what they bought is to study the techniques of great superinvestors and learn from their successes and failures. This will make you aware of what has worked in the past in terms of investing, as well as the tools and tactics used to achieve success.
The critical step is to “Adapt” this investment advice to your own individual situation, and then use this modified method to your investing. Copy, clone, or coattail the superinvestors’ strategy. Adapt the plan to your temperament, investing objectives, investment resources, skill set, and competencies. These will almost certainly differ from any of the superinvestors you seek to mimic.
