Billionaire Chris Hohn runs TCI Fund Management, the best performing hedge fund of 2023 and the seventh-most-profitable hedge fund in history, according to LCH Investments. Those credentials make Hohn an interesting case study.

Somewhat surprisingly, Hohn had 31% of his portfolio allocated across two stocks as of the September quarter: (NYSE: V) accounted for 14% of his portfolio, and General Electric (NYSE: GE) accounted for 17% of his portfolio. That capital concentration indicates that Hohn has a great deal of confidence in both businesses.

Visa and General Electric are undoubtedly iconic companies. The former is the most valuable financial services brand in the world, and the latter traces its roots back to Thomas Edison. But iconic companies are not always good stocks. Here's what investors should know.

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Source Fool.com