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Billionaire investors have undoubtedly experienced a lot of success. To safeguard their high net worth, they are looking for investments that can preserve and grow their assets. That's a strategy which can also suit the goals of smaller investors who are seeking relatively safe stocks to grow their retirement savings.

Bill Ackman of Pershing Square and David Tepper of Appaloosa Management are two of the most widely followed fund managers. Here are two of their recent picks that could be your next winners, too.

1. Alphabet (Google)

Bill Ackman is the founder of Pershing Square Capital Management and currently has a net worth of $9 billion, according to Forbes. Pershing Square holds a highly concentrated portfolio of seven stocks, so companies must pass a strict filter to earn a position in the firm's portfolio. Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) is a relatively new holding that was added last year, and the fact that Ackman continues to hold a large stake suggest the stock still offers upside.

Alphabet makes most of its money from online adverting, especially through Google Search and YouTube. An improving ad market has the company enjoying a lot of momentum right now. Google's advertising revenue grew a solid 13% year over year in the first quarter.

One reason Ackman likes the stock is that Alphabet should continue to see strong ad growth as it introduces new AI tools to help advertisers improve their performance. The company has been investing in AI for several years, which is crucial to delivering more useful services for users and enterprise.

Management is seeing positive early results following the integration of Google Lens in its Bard AI chatbot, which allows users to ask questions about images. This is one example of how AI is shaping the future of the user experience across its various services. AI can significantly improve the user experience and therefore attract a lot more advertising spending on Search and YouTube over time.

It's these growing AI capabilities that make Alphabet one of the best AI stocks to hold for the long term. The company has a huge amount of data and cash resources to build the smartest AI models.

The best part is that the stock appears undervalued. It trades at a reasonable forward price-to-earnings ratio (P/E) of 23, which is slightly cheaper than the S&P 500 average. A leading AI company that is posting double-digit growth in revenue deserves to trade at a higher valuation.

2. JD.com

David Tepper is the founder of Appaloosa Management and has an estimated net worth of over $20 billion, according to Forbes. One of the latest additions to his firm's portfolio is e-commerce leader JD.com (NASDAQ: JD). This once fast-growing e-commerce company has experienced sluggish growth over the last few years due to increasing competition and a weak macroeconomic environment in China. These headwinds have the stock down to its lowest valuation in years.

A challenging retail climate has forced companies to lower prices to attract customers. However, JD.com is starting to emerge as a winner in this price war. The company posted a 7% year-over-year increase in revenue in the first quarter, driven by resilient demand for electronics and home appliances.

The main advantage for JD.com is its infrastructure and supply chain capabilities. The company leveraged this to its advantage recently through its trade-in program, which boosted sales of appliances last quarter. JD.com is proving it can deliver value to consumers while delivering improving financial results.

The company's adjusted earnings per share grew 19% year over year in the first quarter. The bottom line benefited from demand for marketing services by third-party merchants that sell on JD.com. These services generate higher margins and are catalysts for more earnings growth.

Meanwhile, the stock trades at a cheap forward P/E ratio of 9 based on this year's consensus earnings estimate. With the share price starting to move higher following positive earnings results, it might be a timely buy for market-beating returns in 2024.

Should you invest $1,000 in Alphabet right now?

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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. John Ballard has positions in JD.com. The Motley Fool has positions in and recommends Alphabet and JD.com. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.