What Do the World's Best Investors Know That We Don’t?

The top investors in the world have just revealed their latest stock purchases and sales through their 13F filings. The big question is: What do they know that we don’t? Do they see a crash coming, or is there a massive opportunity to make serious money right now?

When I talk about these “super investors,” most of them I deeply respect. One in particular? Not so much. So, let’s break it all down and start with the legend himself: Warren Buffett.

Warren Buffett’s Recent Moves

Warren Buffett runs Berkshire Hathaway, but he doesn’t personally make every buy or sell decision within the company. That said, let’s look at what his team has been up to:

• Dita Inc. – Sold about 6% of his shares but still up 200% on the company.
• Occidental Petroleum – Increased shares by 0.3%. This has been a big one for Buffett; he’s been loading up. His average buy price is $54, and it’s currently trading at $48. Many might criticize this, but Buffett has never cared about short-term price swings. If he believes in a company, he keeps buying.
• Sirius XM – Increased by 2% and up about 13.9% overall.
• Bank of America – Sold 12%. He continues to trim his position.
• Citigroup – Sold a massive 73.5% of his shares.
• Constellation Brands – A new holding. 237 average buy price, currently at 163. With a P/E ratio above 40, this one surprises me.
• Domino’s Pizza – Increased by 86.5%.

It’s important to remember that while Buffett himself is making some decisions, many of these are likely being made by others in his company—except for Occidental, which seems to be his personal bet.

Seth Klarman’s Big Moves

Seth Klarman, another legendary investor, made some significant plays:

• Restaurant Brands International – Increased shares by 10,000%. Likely his first major buy into the company.
• Restaurant Brands Breakdown:
  • Owns Burger King (7,100 stores), Tim Hortons (4,500), Popeyes (3,400), and Firehouse Subs.
  • Market Cap: $30 billion.
  • 5-year average free cash flow: $1.3 billion.
  • 5-year average net income: $889 million.
  • Current P/E and price-to-free cash flow: 23.
  • Margins: 37% gross, 16% profit margin.

Looking at the Stock Analyzer Tool, I ran the numbers:

• Revenue growth assumptions: 3%, 5%, and 7% for the next 10 years.
• Profit margin: 12.5%, 13.5%, and 14.5%.
• P/E ratio: 13, 15, and 18.
• Target return: 9%.

Results? A low valuation of $31, a high of $59, and a middle ground of $42. Klarman is seeing something here, and I respect that.

The Disaster That Is Cathie Wood

Now, let’s talk about someone I do not respect: Cathie Wood. She’s been selling stocks left and right, contradicting her own bullish stance.

• Tesla – Sold 28% of her shares.
• Palantir – Sold 30%.
• Bitcoin Holdings – Sold 25% of her Bitcoin stocks despite being a big advocate.
• Amazon – Increased by 156%.
• Unity Software – Sold 83%.

Her trading style is frustrating. She claims to believe in these stocks but keeps selling. That’s not investing—it’s speculation. Investors pick companies and stick with them. Traders jump in and out, and in the long run, that approach fails. Mark my words, when the next bear market hits, she’ll be wiped out.

David Tepper’s Smart Moves

David Tepper has made some interesting investments, especially in Chinese stocks.

• Alibaba (BABA) & JD.com – Increased positions.
• Adobe – Sold 200,000 shares.

I personally added to Adobe, while he completely exited. Who’s right? Time will tell.

Now, let’s look at Alibaba in detail:

• Stock price year-to-date: +48%.
• Current assets: $84 billion in cash equivalents.
• Market cap: $300 billion.

I ran Alibaba through my Stock Analyzer Tool:

• Revenue growth assumptions: 3%, 6%, and 9%.
• Profit margin: 15%, 18%, and 21%.
• P/E ratios: 13, 15, and 17.

Results?

• Low valuation: $95–$117.
• High: $250–$300.
• Middle range: $160–$190.

At the middle range, Alibaba still presents a 15% potential return despite its recent 48% run-up. This doesn’t even factor in its strong balance sheet.

Michael Burry’s Latest Bets

Michael Burry, famous for “The Big Short,” also made moves:

• PDD Holdings – Regretfully sold too early.
• JD.com – Sold 40% of his shares.
• Alibaba – Sold 25%, missing out on its 48% recent gain.

He’s known for jumping in and out of stocks. Historically, Burry’s picks tank before skyrocketing. The guy bought GameStop at $4 a share, sold at $20 or $25, and missed the full squeeze. But he sees value before others do.

What This Means for You

Here’s the key takeaway: Invest based on principles, not hype.

• Short-term stock movements are driven by emotion.
• Long-term success is driven by fundamentals.
• Every investment is the present value of all future cash flows.
• A great company can be a terrible investment if you overpay.

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