We recently compiled a list of the 30 Best Stocks To Invest In According to Billionaires. In this article, we are going to take a look at where CME Group Inc. (NASDAQ:CME) stands against the other stocks.
Billionaires and top hedge fund managers dominate the market with large investments in leading companies with strong track records and exceptional performance. These investors have large capital and they like to invest in established companies rather than betting on underperformers.
The S&P 500 index has reached its all-time highs, achieving returns of over 20% for the second consecutive year post-COVID. Billionaire investor and CEO of Berkshire Hathaway Warren Buffett made a bold move in 2024, selling a record $134 billion of net stock. Buffett’s move has raised concerns for investors and analysts. Historically, when Buffett’s firm becomes a net seller, it’s often followed by below-average market performance. Many believe that this could be a signal of stock market underperformance in 2025.
The stock market has already taken a hit in 2025 following the release of Chinese AI model DeepSeek. Almost $1 trillion was wiped away from the U.S. stock market in January 2025. Now, the market is reacting to President Donald Trump’s tariff policy, as the U.S. initiates 25% tariffs on Canada and Mexico.
“Tariffs increase the odds of a negative feedback loop in the economy. Nobody believed they would be implemented,” said Dennis Debusschere, founder of 22V Research.
The S&P 500 has been underperforming its global peers in 2025 so far, with equity indexes in China, Europe, Canada, and Mexico all racing ahead. S&P 500 has slid nearly 1.90% year-to-date, as of March 4. Whereas, the tech-heavy NASDAQ 100 index has dropped over 4% so far this year.
According to Deutsche Bank strategist Parag Thatte, equity positioning dropped significantly in the week ended February 28, plunging back down to near neutral and wiping out the post-election bump.
Billionaire investor Leon Cooperman in an interview during the Squawk Box show on CNBC recently said that the president is on the right track, but he is doing things in a very destabilizing manner. The president is focusing on reducing the deficit, which is the right thing to do, Cooperman added.
The transition phase seems to have a much bigger impact on the broader market, coupled with the tariff policy. Ironsides Macroeconomics’ Barry Knapp expects the Fed to cut a full percent this year, with the first cut projected in May. Knapp added that the economy needs to shift from government spending to capital spending for a better environment for business.
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For the best stocks to invest in according to billionaires, we analyzed Insider Monkey’s exclusive database of billionaire stock holdings. We selected the 30 best stocks to invest in based on the highest number of billionaire investors, updated as of Q4 2024. For the stocks with the same number of billionaire holdings, we have used the total value of billionaire holdings as a secondary metric to rank the stocks. These billionaires are founders or managers of some of the world’s leading hedge funds and companies. The stocks are ranked in ascending order of the aforementioned metrics.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Is CME Group Inc. (CME) Among Billionaire Louis Bacon’s Long-Term Stock Picks?
A businessman in the foreground shaking hands with a colleague in a trading floor.
No. of Billionaire Investors: 21
Total Value of Billionaire Holdings: $2.14 Billion
CME Group Inc. (NASDAQ:CME) offers a derivatives marketplace and empowers market participants worldwide to trade futures, options, cash, and over-the-counter (OTC) markets, optimize portfolios, and analyze data. The company provides different global benchmark products across all major asset classes on interest rates, equity indexes, foreign exchange, energy, agricultural products, and metals.
One of the mottos of President Trump’s election campaign was cryptocurrencies, and we saw how the President celebrated his win with the launch of his memecoin. The increasing demand for cryptocurrencies and a favorable regulatory environment in the Trump administration can create massive opportunities for players like CME Group Inc. (NASDAQ:CME).
The company has announced plans to launch Solana futures on March 17, pending regulatory approval. This move expands CME’s cryptocurrency derivatives portfolio, which currently includes futures for Bitcoin and Ethereum. The Solana futures will be offered in two sizes: a micro-sized contract for 25 Solana (SOL) and a larger-sized contract for 500 SOL. The company has taken this decision following a growing demand for regulated products in the crypto industry.
On February 25, the company achieved its new, single-day volume record of 67,124,571 contracts traded, surpassing the previous record of 66,256,756 contracts set on March 13, 2023. CME also achieved new daily volume records in its deeply liquid interest rate complex on February 25. Considering the growing demand for CME’s offering in the crypto space, Morgan Stanley analyst Mike Cyprys raised the price target on CME shares from $256 to $263. Cyprys keeps an Equal-Weight rating on the shares.
Overall CME ranks 21st on our list of the best stocks to invest in according to billionaires. While we acknowledge the potential of CME as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CME but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.
Disclosure: None. This article is originally published at Insider Monkey.
