Investor bets on PayPal and Intel over Berkshire Hathaway

Thansettakij•Economy•3d ago

Reader Briefing

Tom Hayes of Great Hill Capital predicts Berkshire Hathaway will fail to beat the S&P 500 over the next decade.

•Tom Hayes believes the era of Berkshire Hathaway outperforming the market has ended.
•Tom Hayes is investing in undervalued stocks including PayPal Holdings Inc. and Intel Corp.
•Tom Hayes warns retail investors against overcrowded trades in semiconductor and memory stocks.

•Tom Hayes believes Berkshire Hathaway Inc. will not be able to beat the S&P 500 index over the next 10 years.
•Tom Hayes cites the law of large numbers, the eventual absence of Warren Buffett, and capital allocation obstacles as reasons for Berkshire Hathaway Inc.'s projected underperformance.
•Tom Hayes is betting on high-conviction stocks with significantly dropped prices, specifically PayPal Holdings Inc. and Intel Corp.
•Tom Hayes views PayPal Holdings Inc. as high-conviction due to 6 billion dollars in annual free cash flow, continuous share buybacks, and growth drivers like Venmo and its advertising platform.
•Tom Hayes believes Intel Corp.'s role in national security makes the prospect of company recovery clear.
•Tom Hayes warns retail investors that stocks driven by popularity, such as Space Exploration Technologies Corp., are priced for perfection and could drop 70% if they miss targets by only 1%.
•PayPal Holdings Inc. closed Wednesday at 61.25 dollars per share, while Intel Corp. closed Wednesday at 92.80 dollars per share.

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Tom Hayes

"law of large numbers"

กฎของจำนวนมาก

Tom Hayes

Founder of Great Hill Capital who expressed views on Berkshire Hathaway and specific stock bets.

Warren Buffettℹ️

The leader of Berkshire Hathaway Inc.

Great Hill Capital

The firm founded by Tom Hayes.

Berkshire Hathaway Inc.ℹ️

A company that Tom Hayes believes will not outperform the S&P 500 in the next 10 years.

S&P 500ℹ️

The stock market index used as a benchmark for Berkshire Hathaway Inc.'s performance.

PayPal Holdings Inc.

A high-conviction stock for Tom Hayes featuring Venmo and an advertising platform.

Intel Corp.ℹ️

A company Tom Hayes bet on due to its significance to national security.

Space Exploration Technologies Corp.ℹ️

A popularity-driven stock mentioned by Tom Hayes as a risk for retail investors.

Benzinga's Edge Stock Rankings

The entity providing price trend and growth ratings for PYPL and INTC.