The 13F filings from billionaire money managers were recently made available and traders and everyday investors alike were eagerly awaiting to see what stocks investment gurus like Warren Buffet and John Paulson bought in the fourth quarter of 2010.
In the fourth quarter of 2010, billionaire investors flocked to financials, with several of the most well known investors buying up shares of Bank of America, Wells Fargo and Citigroup; Genzyme, which is in takeover talks with Sanofi-Aventis, was also a popular pick among successful investors.
Bank of America is still one of the top destinations for a number of the billionaires, Forbes reports. The biggest American bank by total assets is a big part of a lot of investor portfolios – though both Buffet's Berkshire Hathaway and Paulson's hedge fund cut their exposure to the bank as it contends with the aftermath of the financial crisis and the alleged upcoming release of private internal documents by Wikileaks.
Billionaire David Tepper joined Buffet and Paulson in upping his stake in San Francisco-based Wells Fargo; Buffet is bullish on the bank, buying 6.2 million shares for $204 million. In the pharmaceutical industry, many of the billionaires invested in Genzyme, while others bought shares in Abbott Laboratories and Bristol-Myers Squibb.
Investment guru George Soros bet big on airlines in the fourth quarter, investing heavily in Delta Airlines. Soros purchased an additional 11 million shares of the airline's stock, bringing his total to 14.7 million shares that are worth about $157.6 million.
Technology stocks weren't popular picks, however. While some billionaires bought up Apple shares, many investors stayed away from the sector. Some analysts contend that a majority of the technology companies in Silicon Valley are overvalued, potentially driving away investors afraid of a bubble forming.