Billionaire Stephen Mandel Slashed His Stake in 2 Cutting-Edge Artificial Intelligence (AI) Stocks in 2024 and Piled Into a Smoking-Hot High-Yield Dividend Payer Instead

Group 1: Investment Strategy - Lone Pine Capital's Stephen Mandel is selling stakes in two leading AI stocks, Amazon and Salesforce, while increasing investment in Philip Morris International, a high-yield dividend stock with a 3.5% yield [1][5][22] - Mandel sold 1,675,755 shares of Amazon, a 31% reduction, and 934,437 shares of Salesforce, equating to a 37% decline [8][12] - The fund's average holding time is six quarters, indicating a relatively active investment strategy [11] Group 2: Market Context - The S&P 500's Shiller P/E Ratio is around 38, more than double its 154-year average, suggesting a historically high market valuation [13] - Despite the ongoing AI spending spree, Mandel's selling activity may be influenced by concerns over valuation [12][14] Group 3: Philip Morris International - Philip Morris International's stake was increased by 115% in 2024, with the fund acquiring an additional 3,462,581 shares [15][16] - The company is expanding its smoke-free product line, including Zyn nicotine pouches and IQOS heated tobacco systems, which are driving sales growth [20][21] - Philip Morris is expected to achieve over 7% sales growth in 2026, with earnings per share projected to increase by more than 10% [21]