Billionaires Are Piling Into These Top Stocks. Should You Buy Them?

Group 1: Nike - Nike's share price has fallen 50% from its previous peak, prompting a leadership change with the appointment of Elliott Hill as CEO [3][5] - Bill Ackman's Pershing Square Capital Management has been accumulating Nike shares, holding over 18 million shares worth $1.4 billion by the end of Q4 [3][4] - Despite a trailing revenue of$49 billion, Nike has faced challenges with a 9% revenue decline and a 26% drop in net income in the most recent quarter [5][4] - The stock's P/E ratio is just under 24, which is lower than the S&P 500's 29 but still within Nike's historical range [6] - Over the past decade, Nike's revenue grew at a compound annual rate of 6%, while earnings per share grew 10% [7] - Analysts predict a 10% sales decline in fiscal 2025, with a potential recovery to 2% growth in fiscal 2026 [9] Group 2: Starbucks - Starbucks has faced challenges in a cautious consumer spending environment, but its stock has risen 18% since the announcement of Brian Niccol as the new CEO [10][11] - Two billionaire fund managers, Stephen Mandel and Andreas Halvorsen, have increased their stakes in Starbucks significantly [11][12] - Starbucks generated $3.5 billion in net income on$36 billion of revenue over the last year, with a global presence of over 40,000 stores [12] - The stock's P/E ratio is currently at 36, which appears expensive compared to a forward P/E of 31 based on next year's earnings estimates [13] - Starbucks has a 10-year average annualized sales growth of 8% and earnings growth of 9% [14] - Under Niccol's leadership, Starbucks is investing in improving service speed and technology, which may enhance customer satisfaction and sales [15]