Follow Billionaire Investing Strategies with These Stocks and ETFs - ETF News And Commentary

Everybody dreams of becoming rich and famous like Warren Buffett, Carl Icahn, Daniel Loeb, David Tepper or David Einhorn. After all, these ambitious and iconic investors have proven how profitable putting one's money in the right place can be.

Buffett's Berkshire Hathaway has enjoyed an average growth rate of about 20% annually and has an excellent record in beating the broader markets since its incorporation in 1965. Furthermore, Berkshire Hathaway has added more than 115% over the last five years.

There is a widely used term in the investing world “

”. Investopedia explains this term as the surge in stock price following Carl Icahn's buying a position in the shares of a company. Notably, Icahn's Icahn Enterprises, L.P. grew more than 162% in the last five years, far better than the S&P 500's gain of 87% during same time frame.

Given this trend, investors might be looking for ways to apply Buffett or Icahn-like strategies to their portfolio. Investing in Berkshire or Icahn Enterprises is always an option, there are several other ways to imitate these billionaires' investing styles.

Normally, Buffett takes interest in companies trading below their intrinsic values, as per his vision while Icahn's investment philosophy, barring exceptions, is to buy what everyone ignores. This means stocks with lower P/E or lesser book value than that of current valuation attract Icahn.

We have analyzed their buying and holding positions at the end of Q3 and highlight the names of the stocks and related ETFs for investors who want to follow these investing stock market veterans.

Among many other new positions and additions,

has purchased medical services stock

per Barrons.com. He has also raised his stake in credit card stocks

(

)

(

) and

(

) (read:

).

The industry ESRX hails from currently resides in the top 38% part of the Zacks Industry Rank while financial transaction services industry that MA and V are from presently enjoys the top 16% rank. Notably, ESRX has as much as 9.45% exposure in

This Zacks ETF Rank #2 (Buy) fund has surged over 21% in the year-to-date frame (as of November 17, 2014). MA has about 3.75% and V has 5.41% weight in

. This Zacks ETF Rank #1 (Strong Buy) fund has added about 7.7% in the year-to-date frame.

IBM has about a 4.5% exposure in Strong Buy rated ETF

(

). WMT has about a 10.2% focus in Zacks ETF Rank #3 (Hold) fund

Year to date, RTH is up 10.7%. DTV too has about 5.1% exposure in

. Though down 6% in the year-to-date frame, this ETF has added about 4.8% gain over the last one month.

Icahn showed interest in eBay (

) in

while he reduced his stake in Netflix (

), noted Barrons.com. The Internet e-commerce industry in which eBay operates also has an impressive Zacks Industry Rank falling in the top 37% place (read:

).

eBay has considerable exposure (7.82% and 6.08% respectively) in

(

) and

(

). Both PNQI and FDN has a Zacks ETF Rank #3 (Hold). The funds have added about 10% and 12% in the last six months, respectively.

)

(

) and

(

) are some of David Tepper's choices. These stocks have substantial exposure in

and

. Among the trio, SOXX and XHB has a Zacks ETF Rank #3 (Hold) (read:

).

SOXX has gained about 21.3% and MOAT has added about 10.5% so far this year. Though XHB has lost about 3% in the year-to-date frame, the fund retuned about 7% in the last one month.

MOAT appears to be a smart pick if these investment gurus are to be followed. In fact, the famous Buffett most investing strategy is also to target ‘wide moat' businesses.

Apart from the above-mentioned stocks and ETFs, this batch of top-notch hedge fund managers also has an affinity for Alibaba – a Chinese e-commerce company and a new entrant to the U.S. bourses. Barrons.com noted that David Tepper, George Soros and Daniel Loeb all are enamored with the company.

Common investors willing to join the bandwagon, can move into the stock or pour their money into

which has about 11% stake in Alibaba.

is another ETF having around 11% exposure to that company.

This is not the end though, as yet another easy way to follow billionaires' ideas is by investing in

(

). The fund tracks the iBillionaire Index to provide exposure to 30 large-cap U.S. equities having the highest allocation in the investment portfolio of billionaires. The ETF hit the market in August and has returned about 9% in the last one month (read:

).

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