Laffont’s Little Hoards

Now, for the last seven years or so, Wall Street has been a rather bouncy castle for those who like to collect money. The S&P 500, that grand old index, has had a bit of a swagger, leaping about like a frog on a hot griddle. Except for one grumpy year, 2022, when it sulked. But mostly, it’s been a jolly good time for those with pockets full of shillings.

Investors, bless their optimistic hearts, have been rather excited by all sorts of shiny new things: artificial intelligence (which sounds like something from a science fiction comic), quantum computing (even more baffling), the hope of cheaper borrowing, companies buying back their own shares (a bit like a dog chasing its tail), and a surprisingly resilient American economy. It’s all a bit much, really.

Billionaire money managers, those chaps who look after vast sums of other people’s fortunes, have naturally taken notice. They’re required, you see, to spill the beans every three months, listing all the stocks they’ve been gobbling up and spitting out. It’s a rather tedious process, overseen by the Securities and Exchange Commission, a group of people who seem to enjoy paperwork immensely.

Old Warren Buffett, now mostly retired, always causes a bit of a stir when he reveals his holdings. But Philippe Laffont, of Coatue Management, is no slouch either. He oversees a mountain of money – close to $40.8 billion, can you imagine? – and has a knack for picking stocks that outperform everyone else. A bit unsettling, if you ask me.

According to the latest reports, there are three particularly large companies that Mr. Laffont seems to be rather fond of. He’s been buying their shares with the enthusiasm of a child in a sweet shop. These companies, you see, belong to the ‘trillion-dollar club’ – rather grand names, aren’t they?

Alphabet

Now, Alphabet – that’s Google’s parent company, for those who haven’t noticed – seems to be Mr. Laffont’s absolute favorite. He’s been piling into its shares like a squirrel preparing for winter. He bought a huge chunk of Class C shares and then, just to be sure, added even more of the Class A shares. A rather greedy fellow, wouldn’t you say?

A bit of good news helped, apparently. A court ruled that Alphabet didn’t have to sell its Chrome browser. A silly lawsuit, really, but it removed a bit of a cloud and allowed investors to focus on the company’s profits. Profits, of course, are the lifeblood of these enormous beasts.

Alphabet’s strength lies in advertising. Google controls nearly all the internet searches, and YouTube is the second most popular place for watching silly videos. Businesses pay a fortune to put their messages in front of our eyes. A rather clever scheme, if you think about it.

And now, they’re dabbling in artificial intelligence. Google Cloud, their cloud computing service, is growing at a tremendous rate, fueled by this new technology. It’s all a bit magical, really, but I suspect there’s a lot of hype involved.

Alphabet also has a rather large pile of cash. Nearly $100 billion, in fact. They can afford to invest in all sorts of fancy gadgets without worrying about running out of money. A bit unfair, if you ask me.

Broadcom

The second company that Mr. Laffont seems to adore is Broadcom, a specialist in networking. He’s been buying its shares steadily throughout the year. A bit like collecting stamps, really. He added a few in the first quarter, a great many in the second, and a respectable handful in the third. A rather determined collector, wouldn’t you say?

Q1 2025: 45,909 shares purchased
Q2 2025: 2,075,267 shares purchased
Q3 2025: 120,052 shares purchased (5,767,559 total shares held)

Mr. Laffont, it seems, is fascinated by all things artificial intelligence. While everyone else is clamoring for Nvidia’s graphics processing units, he appears to prefer the networking solutions offered by Broadcom. These solutions connect thousands of GPUs, allowing them to work together at lightning speed. A bit like a team of ants, really.

Broadcom also provides specialty chips for data centers. These chips are custom-built for specific tasks, making them incredibly efficient. A bit like a tailor-made suit, really.

But Broadcom is more than just an AI stock. It also produces chips for smartphones and other devices. A versatile company, you see.

Microsoft

The third trillion-dollar company that Mr. Laffont has been hoarding is Microsoft. He added a substantial number of shares in the second and third quarters, bringing the total to over 4.6 million. A rather impressive collection, wouldn’t you say?

Artificial intelligence, naturally, is playing a role. Microsoft’s Azure cloud service is growing rapidly, fueled by this new technology. A bit like a runaway train, really.

But Microsoft also has some rather old-fashioned businesses, like Windows and Office. These businesses still generate a lot of cash, even though they’re not growing as quickly as they used to. A bit like a reliable old workhorse, really.

Microsoft also has a rather large pile of cash. Over $100 billion, in fact. They can afford to pay dividends, buy back their shares, and make acquisitions. A bit much, if you ask me.

And finally, Microsoft’s shares are relatively cheap, at least compared to their historical average. A bargain, perhaps? Or a trap?

2026-01-27 12:12

Alphabet

Broadcom

Microsoft

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