2 Bargain Stocks Billionaires Are Buying

Combing through the holdings of billionaire investors can be a great way for retail investors to find great stocks to buy. Two of the more notable investors one could choose to follow are Howard Marks of Oaktree Capital Management and David Tepper of Appaloosa Management. During one 25-year stretch of his career, Marks earned annualized returns of 23%, while over a 30-year run, Tepper earned annualized returns of 28%.

A peek at their holdings in 2024's third quarter reveals that both investors have been finding value in China's retail sector. Here are two stocks that are trading at cheap price-to-earnings ratios now, but that could soar over the next few years.

(NYSE: BABA) has dominant positions in China's e-commerce and cloud computing market, but the durability of its business is being overshadowed by the country's economic weakness. Lower sales growth sent the stock tumbling over the past few years, and now it trades at a modest price-to-earnings multiple of 18. Howard Marks' Oaktree Capital bought more of the stock in the third quarter.

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Source Fool.com