The Nasdaq Composite index has fallen into a bear market, declining 31% year to date, taking the share prices and valuations of growth stocks to levels not seen in a while. The highest inflation in the U.S. in four decades combined with sharp hikes in the federal funds rate by the Federal Reserve has caused this swoon. There's no better time to buy strong, well-run companies than a bear market, but the caveat is that you must be prepared to hold them over the long term.
Venture capitalist Marc Andreessen famously said that "software is eating the world," but this year it seems more like software is eating itself. If you're looking to "buy on weakness," two software stocks that are primed to deliver long-term growth are Okta (NASDAQ: OKTA) and Salesforce (NYSE: CRM).
Instead of heading for the sideline, Form 13F filings with the Securities and Exchange Commission (SEC) show that most billionaire money managers were active buyers during the first half of the year. What's particularly interesting is that select billionaires have been piling into some of Wall Street's most beaten-down growth stocks. The following three supercharged growth stocks are down as much as 94%, yet billionaires can't stop buying shares of them.