Less than a year away from its 50th birthday and with more than $9 trillion in assets under management, Vanguard is one of the most recognizable investment firms in the world.
Through its decades-long history, the company has made many lucrative trades and is among the first major entities – though not the first as is often claimed – to offer an index fund to the public.
With its long history and past achievements in mind, Finbold decided to examine Vanguard’s portfolio – according to the most recent 13-f filing – to find some of the best stocks currently held by the giant to invest in.
Picks for you
Microsoft (NASDAQ: MSFT)
Though the situation may feel significantly different, Vanguard’s biggest holding – which accounts for as much as 5.6% of the portfolio – Microsoft (NASDAQ: MSFT) is approximately a month older than the investment giant and has a history just as – if not even more – storied.
Through a string of savvy decisions and market maneuvers – some less savory than others – Microsoft has become a household name with a track record of significant stock market success. In recent years, the big tech firm has been one of the bigger players in the ongoing artificial intelligence (AI) boom thanks to an early investment in OpenAI – the company behind ChatGPT.
At the tail-end of July 2024, Microsoft may prove a particularly strong stock pick. The firm’s shares have been swept in a broader tech stock selloff and are 8.99% in the red in the last 30 days of trading.
The decline, which sent MSFT shares to their press time price of $416.02, was further exacerbated by the negative reaction to the blue-chip’s otherwise better-than-expected quarterly report.
Wall Street analysts also have faith in Microsoft stock, as evidenced by the highest 12-month price target for the company – assigned by Joel Fishbein – which stands at $600.
Tesla Motors (NASDAQ: TSLA)
In the early months of 2024, Tesla Motors (NASDAQ: TSLA) – the electric vehicle (EV) maker that accounts for 0.8% of Vanguard’s holdings – was lambasted as one the worst S&P 500 stocks of the year amidst an industry-wide slowdown.
Subsequently, Tesla experienced a major rally on multiple positive developments, including a better-than-feared earnings report and plans to launch an autonomous taxi. By late July, the rally had turned sour on disappointing deliveries and the ‘Robotaxi’ event postponement and is, with its press time price of $230.76, back in the red in the year-to-date (YTD) chart.
Despite the recent weakness, Tesla is well-positioned for strong future growth. Indeed, the EV market is set to expand in the coming years as the world moves forward with the green transition, and the global electricity demand stemming from electric vehicle adoption is set to rocket by 630% by 2030.
Tesla is also set to benefit from the upcoming presidential elections as a victory for the Democrats would likely mean more incentives for people to abandon fossil fuels, and Trump’s anti-EV stance would enable Tesla to outperform its competitors and grab a greater market share thanks to its sheer size and economies of scale.
Finally, while Elon Musk’s promises of a commercially available humanoid robot in 2025 and an autonomous taxi in the near future, they could propel Tesla into becoming a true big tech company if fulfilled.
Wall Street analysts also have faith in Tesla stock, as evidenced by the highest 12-month price target for the company – assigned by Morgan Stanley (NYSE: MS) – which stands at $600.
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Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
