Billionaire Stanley Druckenmiller has never lost money and just bought these two stocks

Few investors can say they’ve never lost money, but billionaire Stanley Druckenmiller is one of them. And we’re not talking about just squeaking by with a 1% gain either. His Duquesne Capital Management generated annualized returns of 30% for 30 consecutive years.

Not even Warren Buffett can claim that distinction, even though he’s been investing for more than 60 years. Berkshire Hathaway (NYSE:BRK-A)(NYSE:BRK-B) has annualized returns of just under 20%, while S&P 500 it returned around 10% per year.

Founded in 1981, Druckenmiller’s hedge fund closed in 2010 with $12 billion in assets under management. Today, the billionaire investment legend runs a family office that manages investments for himself, his family and others.

We can still invest with him because hedge funds and wealthy investors are required to file with the Securities & Exchange Commission the stocks they buy and sell each quarter. Druckenmiller now has $2.8 billion in assets, and the two stocks below are the largest new positions it has taken.

Key points about this article:

• Stanley Druckenmiller had an unparalleled performance in the 30 years he ran it Duquesne Capital Management as it has never had a losing year and generated annual returns of 30%.
• While the fund closed in 2010, Duckenmiller now invests through his family office and has made two new large stock purchases.
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Mid-America (MAA) Apartment Communities

Brownstone Apartments in Brooklyn, New York

Given that no single stock in Druckenmiller’s portfolio of approximately 60 positions represents more than 10% of the total, the 644,000 shares of Mid-America Apartment Communities (NYSE:MAA) just bought nearly $92 million worth is quite a stake. It represents 3.3% of the family office fund and places it in the top 10 investors in the company.

Mid-America is a residential real estate investment trust (REIT) with an interest in 103,614 apartment units in 16 states in the Southeast, Southwest and Mid-Atlantic regions. The the apartment market was red hot, with demand for units climbing to record levels, according to the National Apartment Association. About 390,000 units were absorbed at an annual pace in the second quarter, while supply increased to more than 500,000 units.

While MAA shares are up 22% this year, the stock is down 13% over the past three years as a result of the high interest environment we’ve endured. profit weightedwhich fell 30% year over year in the second quarter.

Because REITs must borrow money to finance the cost of construction, they pay premium rates on their loans. Now that the Federal Reserve has made its first jumbo rate cut, the outlook for REITs like Mid-America Apartment Communities looks brighter.

Interest rates are still high despite the 0.5% cut in the federal funds rate, but analysts believe up to 12 cuts could be implemented next year. This should significantly reduce borrowing costs and could fuel future growth in MAA stock.

Philip Morris International (PM)

Stack of cigarettes

Second largest stock purchase by Druckenmiller Philip Morris International (NYSE:PM), the global tobacco giant. Although cigarette smoking is in secular decline in the US and many European countries, Philip Morris’s investments in reduced-risk products (PRPs) such as e-cigarettes and nicotine pouches are giving the tobacco stock a new boost.

The company’s IQOS Heated Tobacco Electronic Cigarette is a global market leaderespecially in Japan where it has a share higher than 30%. It has a share of 10% in Europe. Philip Morris reported there were 30.8 million users of its devices at the end of the second quarter, up 1.9 million from the end of last year.

Its Zyn brand of nicotine pouches offers a particular growth opportunity. Zyn shipments increased more than 50% to more than 135 million cases in the US. Philip Morris is recording similar growth rates in Europe.

While many see the pouches as a safer means of getting the nicotine hit they’re looking for without the risks associated with smoking, others use them as a “poor man’s Ozempic”—some crazies have dubbed it O-Zyn— pic – referring to the drug for weight loss. Because nicotine is an appetite suppressant, it has helped many people lose weight. And considering that Ozempic costs $1,000, while a box of Zyn costs about $5, it’s seen as a very affordable alternative.

Druckenmiller bought nearly 900,000 PM shares at an average price of $96 per share. Its $90 million position, representing a 3.2% position in its portfolio, has already gained around 24% and could grow with higher RRP sales.

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