Daniel Loeb is a brilliant billionaire investor who’s invested in all sorts of market environments. Indeed, this isn’t the first time he’s encountered intense uncertainty and it probably won’t be the last. And though he does acknowledge that President Trump has quite an “unconventional approach” to fiscal policy, Loeb sounds quite constructive, urging an “unemotional response” to make “good investment decisions” in such a highly uncertain time.
With tariffs and a potential trade war thrown into the equation, the recent wave of volatility is sure to make many retail investors quite emotional.
Indeed, it’s easy to hit that sell button as a combination of tariff tensions and calls of “animal spirits,” extended valuations, and calls for correction become some of the louder voices on Wall Street.
Daniel Loeb is right to stay the course as a net buyer of stocks.
I think Loeb is absolutely right in that if you want to make good, smart investments, you have to check your emotions at the door, whether you’re a Republican or a Democrat. At the end of the day, it’s about picking up shares of companies that have distinct long-term advantages at a discount. Of course, tariffs tend to be bad for business, with some industries being affected far more than others.
Either way, investors who can stay calm and move forward may just be able to uncover value in an environment that could stay anxious throughout the coming weeks and months as tariff-related woes dominate the headlines.
In this piece, we’ll check out a few of the bets that Daniel Loeb’s Third Point fund made in the fourth quarter of 2024. Of the many names Loeb picked up, the following pair of names stand out the most, at least in my view.
Thermo Fisher Scientific
Thermo Fisher Scientific (NYSE:TMO | TMO Price Prediction) was a new buy for Loeb’s Third Point in the fourth quarter. It was arguably the most remarkable new position, especially since the stock took quite the slide in October and November. At the time of writing, TMO shares are down just shy of 16% from 52-week highs.
Indeed, the medical equipment and tool firm may very well be one of the less choppy (0.79 beta) ways to play the healthcare sector in the Trump era. Indeed, med-tech isn’t exactly as much of a target as the pharmaceutical companies.
At the time of writing, TMO stock also looks dirt-cheap at 22.1 times forward price-to-earnings (P/E). Given solid fourth-quarter results and an upbeat 2025 guide, TMO looks to be in a good spot, even if its stock is in a bit of a correction.
Tesla
Tesla (NASDAQ:TSLA) stock has now given back all of the big gains it enjoyed in the back half of last year. Though it’s unclear when Loeb bought (or if he’s since pared his position), I do view shares as tempting as they come in again. At the time of writing, Tesla shares represent a rather small (less than 3%) of the Third Point portfolio.
Indeed, the so-called “Trump bump” has been wiped out, leaving Tesla where it was since Trump’s presidential victory.
With Canadian PM Candidate Chrystia Freeland talking about “100% tariffs on Teslas,” perhaps Trump tariffs could weigh quite heavily on Elon Musk’s EV empire. Though only time will tell how long tariffs linger, I’d be quite worried if such tariffs end up being copied by other nations that the U.S. is hitting with tariffs. Either way, Musk’s political involvement could stand out as a major risk should trade wars loom.
Though it’s an uneasy time to be a holder of TSLA stock, I do think it’ll just be a matter of time before investors get excited again. Whether it takes a smooth Optimus robot roll-out, progress on full self-driving, or some other AI surprise, I’d not dare bet against the name as its sell-off intensifies.
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