5 Stocks Superinvestors Are Buying
You know what’s funny?
As a student, you are not allowed to copy from others during your exam.
But as an investor? You can copy the ideas of the best investors in the world.
Let’s look at what superinvestors are buying today.
Shameless Copycat
As an investor, you can be a shameless copycat.
You should try to get new ideas and do more of what works.
Charlie Munger copied Benjamin Franklin
Microsoft copied Netscape
Facebook copied Snap and Tiktok.
…
Mohnish Pabrai summarized it quite well:
Something very interesting
Do you know what’s really interesting?
Software businesses went on sale in the first quarter of 2026.
Why? The market is afraid of AI disruption.
Warren Buffett said that you should be greedy when others are fearful, and fearful when others are greedy.
That’s exactly what superinvestors are doing right now.
A lot of great investors see this as an amazing opportunity to buy compounders at a wild discount.
A perfect example? Constellation Software.
Mohnish Pabrai loves Constellation Software right now.
Here’s what he has to say about the company:
How Does Constellation Software Make Money?
Constellation Software is the best serial acquirer in the world.
The stock has consistently compounded at +30% per year.
Just 15 years after their IPO in 2006, Constellation had already joined the 100-bagger club. It’s an amazing business.
You can find the essentials here:
Why are superinvestors buying?
Replacing Constellation’s products would be incredibly expensive and risky
The cost of Constellation’s software is minimal compared to the operating costs of most businesses
Constellation Software is currently facing its largest drawdown ever
In short: Constellation Software could be very interesting for long term investors today.
Now let’s dive into these two things:
What are superinvestors selling?
What are superinvestors buying?
What are superinvestors selling?
Quality is facing a tough time.
The market seems to be in a mania. A very dangerous to place to be in.
Just look at this tweet:
This can’t go on forever.
Considering selling quality stocks right now? You’ll probably do it at exactly the wrong time.
I think Quality is very well-positioned to outperform (dramatically) in the years ahead.
Main sells of superinvestors
Intuit (INTU)
How does Intuit make money?
Intuit sells subscriptions for its financial, accounting, and tax preparation software.
Think about TurboTax and QuickBooks.
What happened?
Intuit was trading at very high valuations.
They traded at 50x-70x earnings!
The company had very high switching costs, and was easily able to raise prices every single year.
But AI is getting better very fast. Things are changing quickly.
This is a problem for Intuit.
The company might win new customers more slowly than before. Or it might lose some of its power to charge high prices.
So what happened? The stock was already very expensive. On top of that, growth could slow down. That worried some big investors.
Two of them walked away completely.
Fundsmith and AKO Capital sold all their Intuit shares.
A third investor, Dev Kantesaria of Valley Forge, sold about 15% of his Intuit shares.
The S&P 500
Another interesting thing I noticed?
Prem Watsa runs a company called Fairfax Financial.
In his portfolio, he held an S&P 500 index fund. That’s a fund that follows the 500 biggest companies in America.
He started selling it in the third quarter of 2025 and completely exited in the first quarter of 2026.
He might think the Big Tech companies are overvalued right now.
What happened?
The S&P 500 is becoming more and more concentrated in the big tech companies:
These companies are spending billions on AI.
So what does that mean?
The S&P 500 used to be a wide investment in the whole American economy.
Lots of different companies, lots of different industries. But not anymore.
Today it’s more of a narrow bet on AI.
A few big tech names decide where it goes.
On top of that, the S&P 500 is very expensive right now.
And we’re not just guessing here…
We’re looking at Warren Buffett’s favorite way to measure the market… The Buffett indicator.
What is the Buffett Indicator?
The Buffett Indicator is a measure of whether the stock market is overvalued or undervalued, calculated by dividing the total value of a country’s stock market by its gross domestic product (GDP.
A result above 100% suggests stocks may be overpriced relative to the actual economy.
Today, the Buffett Indicator trades at 219%:
This leads us to another interesting key finding.
Superinvestors Disagree on AI
It looks like superinvestors are trying to figure out who will win and who will lose the AI race.
But they don't agree yet.
Let’s dive in.
Mircrosoft
How does Microsoft make money?
Microsoft sells cloud services, software, and hardware.
They also earn from ads on Bing, LinkedIn, and subscriptions like Microsoft 365 and Xbox Game Pass.
Who bought Microsoft?
Bill Ackman’s Pershing Square made Microsoft ($MSFT) a core holding.
He bought in at 21 times forward earnings.
He called the company “really cheap” after the stock dropped for a short time following its earnings report.
At the same time, Bill Ackman sold his Alphabet position:
Who sold Microsoft?
Chris Hohn’s TCI Fund Management did the exact opposite.
He cut his Microsoft position by more than 80% and bought Alphabet instead.
That makes his Alphabet position 3 times bigger than his Microsoft position.
Hohn seems to bet think the market is getting Google wrong.
He thinks people don’t see how big Google really is, how strong its data is, and how much it still rules search.
Another interesting seller of Microsoft stock?
The trust owned by Bill Gates, one of Microsoft’s founders.
He sold all his Microsoft stock in the first quarter of 2026.
Now let’s get into the most interesting part of this article.
Main buys of superinvestors
What are the 5 stocks superinvestors are heavily buying?
