Very few investors can claim to be in the same league as Warren Buffett, arguably the greatest investor ever. But billionaire Stanley Druckenmiller is one of them. Druckenmiller worked as a fund manager for George Soros, another legendary investor, and he’s never posted a year in the red, while putting up impressive returns over decades of investing. Today, Druckenmiller still invests through his own fund, the Duquesne Family Office. All funds with at least $100 million in assets under management must file 13F forms within 45 days of the end of each calendar quarter, which recently occurred for the fourth quarter of 2024 on Feb. 14. The 13F discloses what stocks funds held at the end of each quarter. In the fourth quarter, Duquesne revealed that it exited its positions in Broadcom (NASDAQ: AVGO) and Microsoft (NASDAQ: MSFT) and piled into these three “Magnificent Seven” stocks instead.
Selling Broadcom and Microsoft
According to Duquesne’s 13F, the fund sold its nearly 240,000 shares of Broadcom and its nearly 43,100 shares of Microsoft. Broadcom had a superb year in 2024, with its stock rising nearly 108%, while Microsoft underperformed the broader market, only posting a 12% gain.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »
Druckenmiller has been in and out of Broadcom since 2023. He purchased a new stake in the company in the third quarter of 2023 and then sold in the following quarter. He repeated this trend in the third and fourth quarters of 2024. Druckenmiller looks to have done OK on his trades with Broadcom, selling for higher average prices than he bought the stock for with gains in the 9% to 16% range based on his average purchase and sale prices.
Broadcom has captivated the market with its ability to make custom chips for companies that can be used to carry out specific artificial intelligence (AI) strategies. For instance, one of Broadcom’s clients is Meta Platforms. The two teamed up to build the Meta Training and Inference Accelerator chip. Meta plans to pour hundreds of billions of dollars into AI technology. Many analysts and investors also think Broadcom has secured a relationship with OpenAI.
Druckenmiller has been investing in and trading Microsoft for over a decade and has made 41 transactions with the stock since 2014. He once again took a new stake in Microsoft in early 2023 and increased his stake for several consecutive quarters. However, Druckenmiller began selling the position in the second quarter of 2024 and exited the position in the fourth quarter.
Microsoft, a member of the Magnificent Seven, failed to take advantage of the AI trade in 2024, as investors questioned the company’s AI strategy and ability to make money off of AI. The company has also had some trouble over the last year hitting its guidance. However, it’s not unusual for Duquesne to be in and out of stocks. Druckenmiller likes tech and AI but is also vigilant on valuations and will sell any stock if he thinks it’s too expensive.
Scooping up other companies of the Mag Seven
Despite selling Microsoft and Broadcom, Druckenmiller scooped up shares in other big tech and AI stocks in the fourth quarter including:
Now, the 13F filing shows that Druckenmiller purchased these stocks in the fourth quarter but it doesn’t say exactly when. If he purchased them prior to President Donald Trump’s election victory on Nov. 5, he’s likely done quite well.
I think there is a good chance that Druckenmiller did get the timing right because he said publicly a few weeks before the election that the market had been pricing in a Trump victory. Given where valuations trade and the stock’s recent rally, I could see Druckenmiller potentially selling Tesla during this quarter.
TSLA PE Ratio (Forward) data by YCharts
Amazon and Google make a lot more sense for Druckenmiller because these stocks that are not solely reliant on AI. Amazon makes a lot of revenue from its software business and retail and subscription sales, while many analysts believe Google has attractive AI assets that the company can unlock value from. Google’s stock has also struggled due to the U.S. Department of Justice’s lawsuit against the company, which many believe will eventually blow over.
Don’t miss this second chance at a potentially lucrative opportunity
Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.
On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:
- Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $363,307!*
- Apple: if you invested $1,000 when we doubled down in 2008, you’d have $46,607!*
- Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $552,526!*
Right now, we’re issuing “Double Down” alerts for three incredible companies, and there may not be another chance like this anytime soon.
*Stock Advisor returns as of February 3, 2025
Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Bram Berkowitz has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla. The Motley Fool recommends Broadcom and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
5 Stocks Our Experts Predict Could Double In the Next Year
By submitting your email, you'll also get a free pivot & flow membership. A free daily market overview. You can unsubscribe at any time.
