Billionaire Investors Druckenmiller, Coleman, and Mandel Jr. Bet Big on Soaring Growth Stock Outpacing the S&P 500

If you’re seeking investment ideas, it’s wise to look at what some of the world's top investors are up to. While every decision they make might not align with your specific investing approach, you could discover strategies that meet your needs. Should you be searching for a low-risk stock offering substantial growth that currently surpasses market performance, S&P 500 (SNPINDEX: ^GSPC) So far this year, it's worth examining a recent decision taken by three tycoons.

Stanley Druckenmiller from the Duquesne Family Office, Chase Coleman at Tiger Global Management, and Stephen Mandel Jr. of Lone Pine Capital all invested in a stock within an industry characterized by consistent performance irrespective of market conditions. The company belongs to the pharmaceutical sector yet boasts a product line driving remarkable revenue expansion. Given these factors, this particular equity might prove notably appealing during turbulent times. times of economic uncertainty -- similar to today -- due to this strong mix of security and development.

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Generating blockbuster revenue

Which stock am I referring to? It’s a corporation with over 145 years of history that has recently surged into prominence because of its flagship offering: weight loss medications. I’m talking about this company. Eli Lilly (NYSE: LLY) the creator of tirzepatide

This medication is marketed as Mounjaro for managing type 2 diabetes and as Zepbound for addressing weight issues; however, physicians have also been prescribing these drugs to individuals aiming to lose weight. Both substances have been causing considerable blockbuster revenue And they are contributing to the company's overall revenue rising into double-digit figures.

Let me expand on this shortly, but for now, let’s examine the actions taken by the billionaires during the final quarter of last year. (It's worth noting that investors are aware of these acquisitions since those managing over $100 million in securities have to report their most recent trades via Form 13F to the Securities and Exchange Commission every quarter.)

During the latest quarter, Druckenmiller initiated a stake in Eli Lily by purchasing 62,190 shares, making this investment approximately 1.3% of his overall portfolio. Similarly, Mandel entered the market for this stock as well, amassing 782,860 shares that account for around 4.4% of all his assets under management. Additionally, Coleman boosted his share count in Eli Lily by 35%, bringing his total ownership to 1,309,960 shares, constituting roughly 3.8% of Tiger Global’s investments.

Favoring growth stocks

Each of these billionaires is recognized for their investment in growth stocks. For instance, Druckenmiller owned shares of Nvidia for several years prior selling them last year and securing profits. Both Mandel and Coleman concur regarding the possibilities. Meta Platforms It constitutes the largest investment in each of their portfolios, representing an 8.8% share in Mandel's holdings and a 16% stake in Coleman's.

As noted earlier, pharmaceutical stocks provide investors with security since individuals require their medications irrespective of global events. Consequently, this guarantees a degree of consistency in terms of income from sales.

When investors put money into Eli Lilly, they stand to gain from its success. Additionally, because the company holds a prominent position in the weight loss medication sector, it offers opportunities for expansion. This could explain why such growth-focused billionaire investors have shown interest in the firm.

In the previous year, Mounjaro’s earnings surged by 124%, totaling over $11 billion. Although Zepbound gained approval towards the end of 2023 and thus lacks a comparable prior-year timeframe, this medication generated more than $4 billion in revenues during 2024.

Growth is likely to continue, considering the high demand for these products. Until just recently, demand surpassed supply, and regulators had placed tirzepatide on its drug shortage list.

A marketplace that could hit $100 billion

Lilly's investments in production have boosted supplies, ensuring greater accessibility of the medication for patients over the past few months. Nonetheless, the appetite for such drugs shows no signs of diminishing; experts forecast that the market for weight-loss medications could surge beyond the $100 billion mark by the end of this decade.

This has resulted in strong stock performance for Lilly, with an increase of over 180% in the last three years. So far this year, it has shown its capability to navigate a volatile market; Lilly has risen by 7%, surpassing the S&P 500.

If you want the security offered by a pharmaceutical stock coupled with growth potential typically found in sectors like technology, for instance, then Eli Lily meets those criteria. This characteristic makes it an excellent choice. billionaire-approved a stock to purchase today and keep for the long haul.

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Randi Zuckerberg, who previously served as the director of market development and spokesperson for Facebook, and is also the sibling of Meta Platforms' CEO, Mark Zuckerberg, sits on The Motley Fool's board of directors. Adria Cimino does not hold any shares in the companies mentioned. However, The Motley Fool has investments in and endorses Meta Platforms and Nvidia. The Motley Fool also holds a disclosure policy .