Billionaires are buying these two incredible growth stocks

Thanks to regulatory requirements put in place by the Securities and Exchange Commission (SEC), ordinary investors have a window into the trading moves of some of today’s greatest financial minds. By looking at the 13F filings sent to the SEC by big institutional investors each quarter, it’s possible to get a clear view of the stocks that Wall Street’s billionaire investors are buying and selling.

While each investor must ultimately decide which stocks are a good fit, taking cues from highly successful investors can help you supercharge your own portfolio. With that in mind, read on to see two stocks high-profile billionaires have bought lately, along with some analysis from two Motley Fool contributors.

One of history’s biggest investors likes this AI stock more than Nvidia

Keith Noonan: Ken Griffin is the founder and CEO of Citadel — the most successful hedge fund of all time. With that kind of pedigree, it’s no wonder investors are watching Griffin’s moves in the artificial intelligence (AI) space. And he made some eye-catching moves.

In the second quarter, Citadel sold about 79% of its stake Nvidia. Meanwhile, Griffin’s hedge fund poured some money into another high-profile AI stock — Palantir Technologies (PLTR -0.03%). Citadel bought more than 5.2 million shares of Palantir stock, increasing its stake in the AI ​​software company by 1,140%.

Griffin’s bet on Palantir has paid off so far, with the data software specialist delivering a fantastic second-quarter report earlier this month. In the second quarter, sales rose 27% year over year to $678 million. The business posted net income of $134 million — representing 20% ​​of total revenue for the period. Net income increased approximately 386% compared to the prior-year period, and the company’s growth engine has never looked stronger.

Helped by sales of its Artificial Intelligence Platform (AIP) software suite, Palantir’s US commercial segment sales grew 33% year-over-year to account for 45% of total revenue. Meanwhile, sales to government customers made up the rest of sales and grew 23% year over year. Growth for both segments accelerated on a sequential quarterly basis and there are signs that momentum will continue to intensify in the near term.

Palantir has made big gains in the private sector, and sales to commercial customers will soon account for total revenue, even as public sector contracts also accelerate. With the company’s fastest-growing segment soon poised to become its largest, that sets the stage for overall revenue growth to continue to accelerate. Along with the business’ very impressive margins, Palantir’s sales growth outlook suggests that the business is positioned to continue to deliver robust earnings growth.

A deceptively simple coffee shop chain

Jennifer Saibil: There’s a secret that billionaire investors know, but growth investors often miss: Sometimes it’s the simplest of businesses that offer incredible opportunities. You don’t always have to follow the hype to find great new stocks. In fact, sometimes the most popular stocks might backfire for obvious reasons: they never make a profit, they get too expensive too quickly, and so on.

Dutch Bros (BROS 0.76%) it’s a coffee chain and there’s nothing significantly different about it. But there is quite a bit about its model that sets it apart from other stores and chains. It is showing strong growth and has a massive future opportunity.

All great businesses start with a great product and that’s the first thing to remember about Dutch Bros customers. they really like its shops and drinks. It has a distinct, customer-centric culture and a down-to-earth atmosphere that attracts consumers from across the country. Currently, Dutch Bros has 912 locations in 18 US states, mostly concentrated on the West Coast. It plans to open about 150 stores this year and plans to expand in the U.S. to about 4,000 stores in the next 10 to 15 years. That’s a long track of new store growth, and that’s what’s driving total revenue growth right now.

There is more pressure on comparable sales growth and that is something to watch. But it has bounced back from bearish lows and is proving resilient despite inflation. There are some growing pains, which are not unusual for high-growth companies. But the concept seems solid, and Dutch Bros is becoming sustainably profitable.

Some of the billionaire hedge fund managers who own Dutch Bros stock include Ken Griffin of Citadel Advisors, who owns 3.9 million shares, John Overdeck and David Siegel of Two Sigma Investments, who own 1.3 million shares, and Steven Cohen of Point72 Asset Management, which owns 1.15 million shares.

Dutch Bros stock has fallen along with many other restaurant stocks in recent months as it looks like summer spending will be lower than expected. The stock price is roughly flat year to date, and now is a great time to buy the stock.