Investing in Top 10 World Richest persons stocks is an easy way to share their profits from growing businesses. However, the ranking of Top 10 Richest may vary (eg. Elon Musk moves from No 30 to No 1 when Tesla price surged by 10X in 1 year) with share prices, market emotions and businesses development, especially with mixed impact of the uncertain COVID-19 pandemic.
In this article, you will learn from Dr Tee on Top 10 World Richest Giant Stocks for longer term investing or short term trading with COVID-19 recovery stock rally. Bonus for readers who could read every words of the entire article, learning unique strategy to position in each richest person giant stock.
#1) Jeff Bezos – Amazon (US NASDAQ: AMZN)
#2) Elon Musk – Tesla (US NASDAQ: TSLA)
#3) Bernard Arnault – LVMH (France PA: MC)
#4) Bill Gates – Microsoft (US NASDAQ: MSFT)
#5) Mark Zuckerberg – Facebook (US NASDAQ: FB)
#6) Zhong Shanshan – Nongfu Spring (HKEx: 9633)
#7) Larry Page – Alphabet / Google (US NASDAQ: GOOGL / GOOG)
#8) Warren Buffett – Berkshire (US NYSE: BRK-A / BRK-B) / Apple (US NASDAQ: AAPL)
#9) Larry Ellison – Oracle (US NYSE: ORCL)
#10) Sergey Brin – Alphabet / Google (US NASDAQ: GOOGL / GOOG)
Most people may think the richest persons in the world are very rich because of their profitable businesses. This understanding is partially correct as it is actually dependent on their share prices which indirectly dependent on businesses and also stock market emotions.
The real time Top 10 World Richest list is updated here. We may observe that the earlier Top 10 list (eg. retail business) are taken over by Technology Giants (dominating 7 out of 10) during the pandemic stock crisis. Let’s learn to position in these Top 10 giant stocks with either long term investing or short term trading.
#1) Jeff Bezos – Amazon (US NASDAQ: AMZN)
Amazon has evolved from a small online book seller into the largest stock in the world with ecommerce business over the past few decades. COVID-19 pandemic has helped the business to grow at faster speed in Year 2020, supporting its share price at high level, making founder Jeff Bezos to be the World Richest person (despite this position may rotate between Elon Musk, depending on daily share price).
Amazon stock is at 60% Optimism level, a strong growth stock near its fair price. Uptrend momentum in short term has been slowed down by sector rotation due to recovery of pandemic. It is more suitable for short term swing trading (Buy Low Sell High every few months) but upside may not be attractive for traders who aim for higher or quicker return.
#2) Elon Musk – Tesla (US NASDAQ: TSLA)
Elon Musk created a miracle to become the world richest person (for a short period of time, rotating this position with Jeff Bezos, depending on share prices) when Tesla share prices surged by 10 times over the last 1 year.
Tesla is a business of future, mainly based on investors believe in enormous potential of electrical vehicles, driven by 5G technology, supported by clean energy policies of major economies (eg. USA, Europe, China, etc). Despite the company has not been profitable for the last decade until 2020 (mainly due to high R&D cost), stock investing is forward looking, rising revenue (mainly China an US automotive markets) with rosy picture of next decade has supported the surge in share prices of Tesla and most automotive stocks with electrical cars.
Tesla stock is at 98% Optimism level, more suitable for trend-follow momentum trading in short term (Buy High Sell Higher) with S.E.T. (Stop Loss / Entry / Target Prices) trading plan. The growing business with greedy market emotions would continue to power this stock and entire electrical car market until the bubble is burst one day. Shorter term position is a good compromise to ride the trend while waiting for the next global financial crisis.
Elon Musk and Jeff Bezos may extend the competition of No 1 from the earth to outer space businesses, technology of future. Few people could predict the dominating technology for future, therefore it may be safer to focus in technology which are proven for the next 1 decade, eg. 5G, electric vehicles, AI, etc
#3) Bernard Arnault – LVMH (France PA: MC)
LVMH is a consumer discretionary stock (eg. luxury handbags) listed in Europe, business was temporary affected by COVID-19, resulting in a major correction in share prices. With recovery in pandemic condition, LVMH is recovering as a strong growth stock.
LVMH stock is at 80% Optimism level, more suitable to position as short term momentum stock (Buy High Sell Higher) until the COVID-19 recovery rally is over one day. Since the customers of businesses are mostly rich people, a stock investor may align with bullish stock market to enter or hold the position, exiting when the next black swan comes in future.
#4) Bill Gates – Microsoft (US NASDAQ: MSFT)
#8) Warren Buffett – Berkshire (US NYSE: BRK-A / BRK-B) / Apple (US NASDAQ: AAPL)
Bill Gates and Warren Buffett are good friends, even their stocks are inter-related. Warren Buffett donates Berkshire stock to Bill Gates and Melinda Gates Charity Fund, contributing to 45% share ownership of Bill Gates stock portfolio. At the same time, Bill Gates has sold most of the Microsoft shares (only keeping about 1%), focusing in charity project with a portfolio of giant stocks. Berkshire invests in a portfolio of global giant stocks including 40% in Apple, founded by Steve Jobs, which is a competitor of Microsoft.
So, it is interesting that the fate of these 3 giant stocks are integrated together in the same boat: Berkshire, Apple and Microsoft. Microsoft has evolved beyond PC into other high businesses such as cloud services and gaming. Apple is transforming from PC to mobile phones, even planning on Apple Car to compete with Tesla in future. Berkshire (through Warren Buffett) is the smartest, no need to work hard on any business, simply making decision to invest in the right stocks (eg. average up on Apple stock investing).
Optimism levels of these 3 stocks are 90% (Microsoft), 50% (Apple) and 60% (Berkshire) respectively. Microsoft is more suitable for short term swing trading (Buy Low Sell High) while Apple and Berkshire may be considered for short term momentum trading or even growth investing for long term (moderate optimism at fair value).
Both Microsoft and Apple have dominated the world technology for the past few decades, having potential to continue the influence for another decade with condition the businesses must evolve at the same time with new technology. It is hard to invest in any technology stock for long term as few technologies could last over 1 decade without challenges of disruptive technologies. So, technology stock investors need to monitor the evolution of technology (which contributes to 7 of 10 Top 10 World Richest persons stocks) at least yearly.
#5) Mark Zuckerberg – Facebook (US NASDAQ: FB)
Facebook rises fast with popularity of internet, leveraging on power of networking with 3 billion global users, supporting founder Mark Zuckerberg to be the youngest Top 10 World Richest person. Even Facebook co-founder, Eduardo Saverin, becomes Singapore Top 10 Richest persons, but no need to work, simply holding tight to Facebook stock ownership.
Facebook stock is at 35% Optimism level. It is a strong young growth giant stock but short term momentum is slowed down with sector rotation during recovery phase of pandemic. It is more suitable for short term swing trading (Buy Low Sell High) in the current stock market.
#6) Zhong Shanshan – Nongfu Spring (HKEx: 9633)
By right, this position (China No 1 richest person, world Top 10 richest person) should be reserved for Jack Ma of Alibaba but due to abandon of IPO of Ant Group, it is taken over by Zhong Shanshan, the founder of both Nongfu Spring and Beijing Wantai Biological Pharmacy (China Shanghai: 603392).
Nongfu Spring is at 50% Optimism level but more meaningful for short term momentum or swing trading as it is still a very young stock with IPO less than 1 year. Political economy has strong influence on China related stocks (recent stock correction of Alibaba is a good example), therefore more speculative in nature. Diversification is key for investing in China related stocks.
Currently, out of Top 10 World Richest, 8 are from US stocks, 1 from Europe stock, 1 from China stock. This shows the strength of US as No 1 economy with the most number of richest people with giant businesses. In the near future, more China stocks may join this Top 10 World Richest list (eg. Jack Ma but only if Ant Group could get approval for IPO).
#7) Larry Page – Alphabet / Google (US NASDAQ: GOOGL / GOOG)
#10) Sergey Brin – Alphabet / Google (US NASDAQ: GOOGL / GOOG)
Both Larry Page and Sergey Brin are co-founders and major shareholders of Google (Alphabet stock), therefore naturally both are listed in Top 10 World Richest list. During pandemic, Google reported stronger business growth, similar to other technology giant stocks which profit from COVID-19 crisis. In future, Google may also share a pie of electrical car industry with its AI and car system development, extending from search engine and mobile phone system businesses, into other future technologies with extensive R&D for decade.
Alphabet (Google) stock is at 70% Optimism level, both a growth stock for investing and momentum stock for short term trading. Unlikely other giant technology stock, growth of Google is more sustainable (moderate), may be considered for longer term investor, therefore each future global stock crisis will be an opportunity for investing (Buy Low & Hold) until Google may become an outdated technology stock (similar to Nokia, Yahoo or Motorola, which has been obsolete or out of fashion). Therefore, a giant technology stock has to continuously develop future new technology, renewing itself to remain competitiveness and lifespan of a giant.
#9) Larry Ellison – Oracle (US NYSE: ORCL)
Oracle is a software giant stock, supporting the founder Larry Ellison to be the Top 10 World Richest person. Position of No 9-10 are marginal, changes in daily share prices may change ranking easily. So, the key may not be to invest in the highest position of Top 10 list but to use the list a reference, filtering giant stocks with growing business, ideally entering during stock market crisis (without affecting the business).
Oracle stock is at 50% Optimism level, more cyclical in business than other Top 10 World Richest stocks It may be considered for both cyclical investing and swing trading.
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90% of majority wealth in the world is with 10% of minority in rich people. Therefore, a smart stock investor may align interest with the Top 10 Richest persons in each country or in the world. However, it is important to focus in only 10-20 giant stocks with sustainable business with forward looking economic moat, diversifying over several sectors (instead of investing in only 1 sector, eg. technology, which may suffer in version 2.0 dotcom bubble one day). There are also many other little giant stocks which are relatively less well known but having more upside potential in stock prices than the famous giant stocks of the richest persons.
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There are over 1500 giant stocks in the world based on Dr Tee criteria, choice of 10 Dream Team giant stocks have to align with one’s unique personality, eg. for shorter term trading (eg. momentum or swing trading) or longer term investing (cyclic investing, undervalue investing or growth investing). Readers should not just “copy and paste” any stock (What to Buy, When to Buy/Sell) as successful action taking requires deeper consideration (LOFTP strategies – Level / Optimism / Fundamental / Technical / Personal Analysis) which you could learn further from Dr Tee Free 4-hr Webinar.
Drop by Dr Tee free 4hr webinar (learning at comfort of home with Zoom) to learn how to position in global giant stocks during COVID-19 stock crisis with 10 unique stock investing strategies, knowing What to Buy, When to Buy/Sell.
Zoom will be started 30 min before event, bonus talk (Q&A on any investment topics from readers) for early birds. There are many topics we will cover in this 4hr webinar, Dr Tee can have more time for Q&A if you could stay later after the webinar, you could ask on any global and local stocks including but not limited to 30 STI component stocks:
Ascendas Reit (SGX: A17U), CapitaLand (SGX: C31), CapitaLand Integrated Commercial Trust (SGX: C38U), City Development (SGX: C09), ComfortDelGro (SGX: C52), Dairy Farm International (SGX: D01), DBS Bank (SGX: D05), Genting Singapore (SGX: G13), Hongkong Land (SGX: H78), Jardine Cycle & Carriage (SGX: C07), Jardine Matheson Holdings JMH (SGX: J36), Jardine Strategic Holdings JSH (SGX: J37), Keppel Corp (SGX: BN4), Keppel DC Reit (SGX: AJBU), Mapletree Commercial Trust (SGX: N2IU), Mapletree Industrial Trust (SGX: ME8U), Mapletree Logistics Trust (SGX: M44U), OCBC Bank (SGX: O39), SATS (SGX: S58), Sembcorp Industries (SGX: U96), Singapore Airlines (SGX: C6L), Singapore Exchange (SGX: S68), Singtel (SGX: Z74), ST Engineering (SGX: S63), Thai Beverage (SGX: Y92), UOB Bank (SGX: U11), UOL (SGX: U14), Venture Corporation (SGX: V03), Wilmar International (SGX: F34), YZJ Shipbldg SGD (SGX: BS6).
Dr Tee will cover over 20 case studies, Singapore giant stocks, eg. CapitaLand Mall Trust (SGX: C38U), Singapore Exchange (SGX: S68), Keppel Corp (SGX: BN4), Top Glove (SGX: BVA), Jardine Matheson Holdings JMH (SGX: J36), Vicom (SGX: WJP) and many others, Malaysia giant stocks, Hong Kong giant stocks and US giant stocks, both long term investing and short term trading.
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