Want to Invest Like a Billionaire? Here's 1 Stock Chase Coleman III Just Purchased.

Key Points

• Coleman's Tiger Global Management hedge fund just bought 4 million shares of Amazon stock.

• Amazon is looking reasonably valued after a slight share price dip.

• The company continues to grow at a rapid clip, especially its AWS business.

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If I asked you to name a famous billionaire, I'm guessing Chase Coleman III wouldn't be the first one that comes to mind. But in the hedge fund world, he's practically royalty.

Coleman is one of the "tiger cubs" who worked for Julian Robertson's Tiger Fund -- the first hedge fund ever -- and then went on to start his own. Today, Coleman's Tiger Global Management fund manages more than $34 billion in securities.

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Last month, Coleman's fund released the list of its latest buys, and it more than doubled its stake in e-commerce giant Amazon (NASDAQ: AMZN), purchasing more than 4 million shares, making it the fund's fourth-largest holding.

Here's why Amazon looks like a worthwhile investment for non-billionaires as well.

Image source: Getty Images.

A much more reasonable price

Three years ago, when the U.S. was just emerging from pandemic lockdowns, shares of Amazon were undeniably expensive.

The company was trading for 110x trailing earnings -- a higher multiple than even perpetually richly valued Tesla's -- as the economy opened up again. Amazon had significantly expanded its warehouse, delivery, and fulfillment network during the lockdown era, and suddenly found itself with excess capacity and a need to downsize (oh, and the company's $12.7 billion paper losses from its investment in electric truckmaker Rivian didn't help either).

However, Amazon didn't stay that expensive for long. The company's financial woes cut the share price nearly in half during 2022. Since then, Amazon has grown its net income by more than 500% to $70.6 billion, while the share price has nearly doubled. The company's price-to-earnings ratio now sits at a much more reasonable 34x.

But even at this "more reasonable" valuation, is the company a buy?

Double-digit growth

For a company that sports a $2.4 trillion valuation, Amazon is growing at a surprisingly fast clip.

In its most recent quarter, the company's net sales grew by 13% year over year, including 11% growth in North American and international e-commerce (once the effects of foreign exchange rates were stripped out) and 17.5% growth in revenue from the company's cloud platform Amazon Web Services (AWS). Meanwhile, overall operating income was up 30.6% year over year to $19.2 billion.

You really can't overstate how important AWS is to Amazon. Although it only generates 18.4% of the company's overall revenue, it's responsible for more than half of the company's profits, and it's the fastest-growing segment of the company to boot. That said, considering that e-commerce only accounts for about 15.5% of all U.S. retail sales, there's plenty of room for growth in that business as well.

Keep it coming

The AWS growth isn't showing any sign of letting up.

Each quarter, Amazon continues to announce a host of new AWS agreements with major corporate partners. In Q1 2025, for example, it signed agreements with Adobe and Uber, while during the second quarter, new partners included PepsiCo and Airbnb.

The company also rolls out new AWS tools every quarter, but in Q2, there was a surprising number of new deployments, including Kiro, a new "agentic integrated development environment," and Strands Agents, "an open-source tool that enables developers to more easily build new agents, offering support for popular open-source frameworks like A2A and MCP."

Amazon seems likely to continue to use its size and scale to continue to innovate, optimize, and find new efficiencies and revenue streams. No wonder that Chase Coleman is picking up shares hand over fist. With the share price down slightly, it looks like a great time for billionaires and non-billionaires alike to add an Amazon stake to their portfolio.

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John Bromels has positions in Airbnb, Amazon, and Tesla. The Motley Fool has positions in and recommends Airbnb, Amazon, Tesla, and Uber Technologies. The Motley Fool has a disclosure policy.