Billionaire Money Managers Unite Behind Top Three Stocks

Recent 13F filings reveal three common denominators among top billionaire money managers. Alphabet (GOOGL +1.37%)(GOOG +1.22%), Taiwan Semiconductor Manufacturing (TSM), and Amazon (AMZN -0.45%) were the most frequently held stocks in the portfolios of 17 prominent billionaires.

Alphabet, parent company of Google, is a top-four holding for five billionaires, including Tiger Global's Chase Coleman and Baupost Group's Seth Klarman. The company's well-defined competitive advantages in the advertising arena and its cloud infrastructure services platform, Google Cloud, are major attractions for investors.

Taiwan Semiconductor Manufacturing (TSMC), the largest position for some billionaires, controls 72% of global chip contract manufacturing and enjoys exceptional pricing power due to high demand for graphics processing units. Its chip-fabrication services are essential to the AI data center build-out.

Amazon's dual-industry leadership in e-commerce and cloud infrastructure makes it a top-four holding for five billionaires, including Appaloosa's David Tepper and Baupost Group's Seth Klarman. The company's Amazon Web Services (AWS) is pacing nearly $169 billion in annual run rate sales.