Rich investors are taking advantage of tech stocks right now.

According to Dataroma, a website that tracks 68 of the world’s top billionaire portfolio managers like Buffett, Marks, Ackman, and more, five of the top stocks rich investors own are Facebook Inc. (NASDAQ: FB), Alphabet Inc. (NASDAQ: GOOGL), Microsoft Corp. (NASDAQ: MSFT), Amazon.com Inc. (NASDAQ: AMZN), and Apple Inc. (NASDAQ: AAPL).

This is unsurprising, as these are some of the biggest and most popular stocks in the world.

What is more interesting and useful for retail investors like us, however, are the stocks they’re buying now that are flying under the radar.

Thanks to the SEC filings billionaire portfolio managers are required to submit quarterly, we can track exactly which companies these are.

This will give you an advantage over most investors because you’re essentially getting inside info on the stocks the big guys are buying that other people don’t know about yet.

Last quarter, two tech stocks were the biggest purchases by these portfolio managers.

So today, we’re going to break them down.

The top tech might surprise you because it’s a company you probably haven’t heard before, but interact with on a regular basis without even knowing it.

Let’s get started…

The Top Dividend-Paying Tech Stock

If coronavirus has made anything clear, it’s that working from home is possible for a lot of companies who didn’t think so before.

That trend is likely to continue even after COVID-19 dies down because businesses are realizing they can get the same work done from home while saving a significant amount of money on office space.

If that theory holds true, companies at the forefront of networking solutions will be in major demand.

Well, it appears rich investors must be thinking along the same lines because Cisco Systems Inc. (NASDAQ: CSCO) was one of their top stocks they added to their portfolios last quarter.

Cisco has been working in network solutions over the last 20+ years and is clear and away one of the leaders in the space.

Whether you know it or not, many of the parts used to make your home Internet work are built by Cisco.

I’ve personally known this to be true for some time because my uncle is actually a Cisco networks specialist.

So, when we got the go ahead to work from home, I turned my spare bedroom into an office.

There was one major problem, however – the Wi-Fi didn’t extend to this room.

So, with the help of my uncle, we added a Cisco Wi-Fi extender that connects to the main modem/router in the house by ethernet cord, so that we could finally get the much needed Wi-Fi in that room.

In fact, it’s actually so powerful that it extends to much of the outside too.

This is just one example of how Cisco is exceling in a COVID-19 world that’s forced to stay at home and rely on the Internet more than ever before.

But what’s more important is that CSCO stock is paying a 3.9% dividend right now.

That’s more than double the 1.8% you would collect owning the S&P 500.

Combine the high return potential of a well-respected tech giant like Cisco with a dividend over double the S&P 500, and you get a lot of billionaire investors interested in buying your stock.

That’s probably why rich investors were buying this stock in droves last quarter.

But the tech stock these billionaires are gobbling up is our best stock to buy now…

Rich Investors Are Making This the Best Stock to Buy

The Internet has completely transformed how brands compete.

And NCR Corp. (NYSE: NCR) knows this about as well as any company could.

See, NCR was founded back in 1884 – so it knows a thing or two about switching its business model to adapt to technology over time.

If it didn’t, it wouldn’t be in business today. And it surely wouldn’t be the top stock rich investors added to their portfolios last quarter.

Ironically enough, the reason NCR is doing so well today is because it is helping other businesses grow their brands online.

NCR believes every company should have a “digital-first mindset,” even if the business primarily generates most of its revenue from physical locations.

That’s because the Internet is the best way to meet consumers every second of the day.

It’s always up and running at some place around the world with billions of users searching for what they want to buy next.

The better a company’s website and payment processing methods, the more stuff they sell. It’s as simple as that.

And NCR is leading the way in this department.

NCR is the world’s leading tech leader for restaurants, retailers, and banks.

Its point of sale (POS) software is currently being used in just about every industry you can imagine in 141 different countries.

You see, NCR invented the magnetic credit card strip, the electronic cash register, and even those self-check-out machines you see at your local grocery stores and pharmacies.

But it’s not stopping there.

NCR recently just became the global leader in multivendor ATM software, which could really boost sales in 2021 and beyond.

From fiscal 2018 to 2019, NCR went from losing $88 million to profiting $564 million.

And I think that could be about $1 billion by the time fiscal 2020 is over thanks to its new ATM software sales.

Billionaire portfolio managers must think the same, putting more money into NCR stock than any other company last quarter.

— Money Morning Staff

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Source: Money Morning