11 Hyper-Growth Stocks Billionaires Are Loading Up On

Fahad Saleem
9 min read

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In this article, we will take a detailed look at the 11 Hyper-Growth Stocks Billionaires Are Loading Up On. For a quick overview of such stocks, read our article 5 Hyper-Growth Stocks Billionaires Are Loading Up On.

Growth stocks have rewarded investors over the past several years, thanks to the hyper growth and mind-numbing expansion of technology companies like Amazon.com Inc (NASDAQ:AMZN), NVIDIA Corp (NASDAQ:NVDA) and Apple Inc (NASDAQ:AAPL). Data from the CFA Institute showed that since the end of the financial crisis, growth stocks outperformed value stocks by 144% through June 2018. The study highlighted that this massive outperformance was not a "fluke" since most of the growth stocks studied were trading at decent valuation multiples during 2009 and they also saw earnings growth during the period which was analyzed in the study.

In theory, growth stocks tend to underperform during a high interest rate environment when investors turn to realistic valuations and move away from risky assets. But what happened last year was the opposite of this. That means Mr. Market really cares about AI and the impact it is creating. That's why investors are still happy to buy technology stocks trading at higher multiples. Many analysts believe we are going through the beginning of the AI revolution and the AI products and services mega-cap technology companies like Amazon.com Inc (NASDAQ:AMZN), NVIDIA Corp (NASDAQ:NVDA) and Apple Inc (NASDAQ:AAPL) are making will have far-reaching consequences on human progress.

Can Growth Stocks Continue to Outperform in 2024?

Financial markets defied all expectations last year and avoided the much-feared recession. But will the AI-related euphoria and economic resilience help the stock market this year? UBS said in its 2024 market outlook report that it would be "historically unusual" if the US economy ends up avoiding recession after the rate hikes of 2022 and 2023. But the report said there is a reason for optimism this time as UBS expects no significant economic contraction in 2024 even though it sees a slowdown in growth.

Should You Invest in Quality Stocks with Higher Multiples?

In this environment, UBS recommended investors to pile into quality stocks. The firm said quality stocks can have higher valuations on a relative basis but it said quality stocks would be worth paying for this year.

"Quality stocks have historically outperformed in the late stages of the business cycle, including in periods of economic contraction, which should offer portfolio protection if the economy slows more than we expect. The quality tilt also aligns with our preference for US technology companies, which should be among the key beneficiaries of AI-related demand for both hardware and software. Quality stocks typically have higher valuations than the overall index, but we think that quality is worth paying for in 2024. Investors can find quality stocks within US tech; stable quality-income and high-quality cyclical stocks in Europe; and in select names in Asia."

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