Five Safe Stocks Billionaire Investors Have Bought Amid Historic Market Volatility

Volatility is the Price of Admission
Investors can’t turn a blind eye to the fact that the stock market has experienced historic levels of volatility in recent times. The iconic Dow Jones Industrial Average (^DJI 1.01%), benchmark S&P 500 (^GSPC 1.15%), and growth-focused Nasdaq Composite (^IXIC 0.99%) have all witnessed unprecedented price swings over the last seven trading sessions.

Past Performance: A Prelude to Future Resilience

A 90-day pause on higher reciprocal tariffs for most countries, announced by President Donald Trump on April 9, led to massive gains for the Dow, S&P 500, and Nasdaq. The Nasdaq, however, endured some of its biggest single-day point declines, while the S&P 500 navigated three of its largest single-session point drops. Despite this turbulence, there’s a silver lining: historic market volatility is a price that investors pay for the opportunity to participate in the stock market. The majority of stock market corrections, bear markets, and crashes are short-lived, making it a smart move to put your money to work during periods of high volatility.

Safe Stocks: The Ones Billionaire Investors Are Buying

But before the market’s current bout of historic volatility, some of Wall Street’s brightest money managers were purchasing safe stocks that can thrive in any environment. These stocks are characterized by their stability, strong fundamentals, and ability to navigate economic downturns.

1. Philip Morris International: The Tobacco Giant

Lone Pine Capital’s billionaire chief Stephen Mandel purchased 1,987,716 shares of Philip Morris International (PM 2.48%) during the December-ended quarter. Tobacco stocks, although not 100% impervious to market fluctuations, have a strong track record of withstanding short-term market fear. Philip Morris International operates globally, with a presence in over 180 countries. This allows the company to capitalize on emerging markets where tobacco is still a luxury item, as well as generate predictable operating cash flow in developed countries. The company is also transitioning to a smokeless future, introducing Zyn nicotine pouches and its Iqos heated tobacco system. While the stock is unlikely to move significantly higher during the current market turmoil, the downside is likely limited. Teva Pharmaceutical Industries: A Healthcare Success Story

Billionaire Stanley Druckenmiller of Duquesne Family Office added to his position in Teva Pharmaceutical Industries (TEVA 1.04%) in the fourth quarter. Druckenmiller’s fund has been aggressively purchasing the healthcare stock, with the goal of taking advantage of its strong fundamentals. Teva’s recent return to sales growth is a result of the company shifting its strategy towards novel-drug development. This has led to improved margins and strong pricing power, as well as a remarkable improvement in its financial flexibility. Teva’s forward price-to-earnings (P/E) ratio is below 5, making it an attractive investment opportunity for those seeking a high-return, low-risk stock. Sirius XM Holdings: The Radio Monopoly

Billionaire Warren Buffett’s Berkshire Hathaway purchased 2,308,119 shares of Sirius XM Holdings (SIRI 2.95%) between January 30 and February 3. Sirius XM’s unique position as a licensed satellite-radio operator provides it with a degree of subscription pricing power. The company’s revenue diversification also sets it apart from its peers, with a majority of its revenue coming from self-pay subscriptions. This reduces the risk of cancellation during periods of economic uncertainty. Sirius XM’s valuation is also attractive, with a forward-year earnings multiple of 6.5 times. A dividend yield north of 5% adds to the stock’s upside potential. Elevance Health: The Healthcare Insurance Giant

Billionaire Leon Cooperman’s fund added 107,400 shares of Elevance Health (ELV 0.54%) in the fourth quarter. Elevance Health’s strong premium pricing power and ability to navigate economic downturns make it an attractive investment opportunity. The company’s acquisition strategy has expanded its reach, with a focus on healthcare services. This has led to improved margins and a more stable revenue stream. Elevance Health’s shares are valued at 11 times forecast earnings for 2026, representing a 19% discount to its average forward earnings multiple over the last half-decade.

5. American Tower: The REIT with a Bright Future

Viking Global Investors’ Ole Andreas Halvorsen purchased 897,340 shares of American Tower (AMT 2.28%) during the fourth quarter. American Tower’s unique position as a specialty REIT provides it with a steady stream of revenue. The company’s 149,000 cellular communication towers in the U.S. and 21 other countries generate consistent funds from operations. Additionally, its foray into data center leasing represents a growing segment with high growth potential. American Tower’s dividend yield is over 3%, providing investors with a relatively stable source of income.

Conclusion

Historic market volatility is a reality for investors, but it’s also an opportunity to invest in safe stocks that can navigate any economic downturn. By taking a look at the portfolios of billionaire money managers, we can see which stocks they’re buying and why. These safe stocks offer a combination of stability, strong fundamentals, and growth potential, making them an attractive investment opportunity for those seeking to weather the current market storm.