Inside the Billionaires Club: Here’s How Big Money Investors are Hunting Profits

Warren Buffett’s “mystery stock” has been revealed. And in case you missed it, it’s none other than health plan giant UnitedHealth Group (UNH).

According to a recent 13F filing, Buffett’s Berkshire Hathaway (BRK.A) took a 5-million-share stake in UNH – worth over $1.5 billion. Berkshire had requested “confidential treatment” from the SEC as Buffett built the position over several quarters – so as not to tip its hand.

Berkshire also revealed sizeable stakes in homebuilders Lennar (LEN) and DR Horton (DHI), as well as steelmaker Nucor (NUE). But the big stake in UNH really caught my eye – and Wall Street’s eye, as well.

It tells me Buffett & Co. see real value in this beleaguered healthcare stock. UNH shares are down more than 40% this year due to changes in healthcare reimbursement rates, particularly for Medicare patients, where UNH is a big player.

In fact, the volume-weighted average price of UNH shares was nearly $400 during the first half of this year, when Buffett was buying.

That means the Oracle of Omaha may still be accumulating shares, now under $300, with a long-term view on the stock. And Buffett isn’t alone in seeing value in UNH shares.

Several of the prominent Billionaires we track at TradeSmith also scooped up UNH shares recently, including Steve Mandel and David Tepper.

I always like to be in the know about what our Billionaires are up to. After all, these are some of the world’s richest – and most successful – investors.

And you easily can keep track of them yourself, with our popular Billionaires Club tracking tool. To open this Big Money tracking dashboard, simply log into your TradeSmith Finance dashboard and click on Invest from the main menu bar. Then click on the Billionaires Club tab to get all the details.

Here you can select any of the 41 billionaires we track, and see their current portfolio distribution according to several TradeSmith metrics…

• Rating…
• Health…
• Asset Allocation by sector…
• Markets…
• And Risk (VQ%).

The Billionaires Club dashboard is available to members with subscriptions to TradeStops Pro or TradeStops Elite, as well as subscribers to Ideas by TradeSmith Elite, Trade360, and – of course – TradeSmith Platinum members.

If you don’t see this dashboard on your platform but would like to, simply call 888-623-0858 to speak with our Customer Care team and learn how to get access.

For Buffett’s Berkshire Hathaway portfolio, shown above, 78% of portfolio stocks have a strong bullish or bullish rating – and 73.17% are in the Health Indicator Green Zone.

Through the Billionaires Club dashboard, you can also view Buffett’s best-performing stock recommendations, recent events and sort positions by open, closed or all.

Our software wizards have also added new interactive filters to our proprietary TradeSmith Screener to make it easier than ever to track the Billionaires.

From the same Invest main menu bar, simply navigate to the Screener tab on the submenu bar.

Here’s how to set up a quick and easy screener to find new stock holdings for one or more of our Billionaire investors:

In this screener above, I’m using just three filters.

First, add the filter for Billionaires Name, which you’ll find in the main filter’s dropdown menu under the heading Billionaires Club.

I selected nine of my personal favorite Billionaires that I follow:

1. Bill Ackman
2. Dan Loeb
3. David Einhorn
4. David Tepper
5. Jeff Ubben
6. John Paulson
7. Seth Klarman
8. Steve Mandel
9. And last but certainly not least, Warren Buffett

Next, I add the Filter for Billionaires Holding Status and set it to New Holding.

This zeroes in on any new stocks recently purchased by my select list of billionaires. Using this filter, you can also select from Increased Shares, Decreased Shares, or Sold Out to see what stocks your favorite billionaires may still be accumulating, reducing, or selling out of completely.

Finally, I want to add one of our most effective TradeSmith proprietary filters. I chose my friend and colleague Jason Bodner’s Quantum Score. Here’s why:

From the first two filters, I know that successful billionaires recently purchased these stocks. But the Quantum Score can tell me if other big money investors are following suit and also buying these stocks in sizable amounts.

Jason recently made some improvements to his exclusive Quantum Score. It’s designed to tell you where the Big Money is flowing into or out of stocks, but recently Jason rescaled the scores to make them even easier to use.

The overall scale runs from 0 to 100, with 100 now being the best buys with strongest Big Money flows. It’s just like getting a 100% mark on your test in grade school – it’s an A+!

In the exact same way, a Quantum Score of 100 is the best of the best. These are the stocks you want to buy.

So, under the Quantum Edge Scores category, I add the filter for Quantum Scoreand set it to “more than 80.”

This gives me the top 80% of stocks we track by Jason’s Quantum Score, indicating the biggest Big Money inflows.

When I ran this yesterday, I got 15 results. Below are the top 10, sorted by Quantum Score descending (highest scores on top):

In the column labeled Billionaires, you can click on any of the highlighted numbers to see which billionaires own the stock.

For instance, both George Soros and Dan Loeb recently added chipmaker Nvidia (NVDA) as a new holding, as shown below. NVDA also has the second-highest Quantum Score on the list, at a blistering 95.1!

With this select list, you’re looking at…

• Stocks recently purchased by some of the world’s most successful Billionaire investors,
• And Stocks that also have strong Big Money inflows according to Jason’s exclusive Quantum Score.

That’s a winning combination in my book!

Bottom Line: Keeping a watchful eye on what the world’s most successful investors are buying or selling can give you insights into new, potentially lucrative investment ideas.

Using our TradeSmith Screener you can also combine Billionaire holdings with any of our other proprietary metrics. This can include Quantum Score, Business Quality Score, Predictive Alpha Expected Move, and much more, to give you even more powerful insights.

Good investing,

Mike Burnick
Senior Analyst, TradeSmith

P.S. In our Billionaires Club screener, we used Jason Bodner’s Quantum Score to build a list of the highest-quality stocks being picked up by big money billionaires today.

But as useful as it is to track these high-profile investors, there’s only so much we can learn from public filings and headline-grabbing announcements. Most of the big money flowing through Wall Street moves far more quietly… and is much harder to track. And by the time headlines catch on, the biggest gains are already gone.

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