Europe’s Top Investor Chris Hohn Reveals Strategy Behind Big Bets on GE, Microsoft, and Visa

TCI’s Chris Hohn favors high barriers to entry and long-term value over flashy growth

Chris Hohn, the billionaire founder of The Children’s Investment Fund (TCI), is known for his high-conviction, long-horizon investment strategy. This week, he drew headlines again after Norway’s sovereign wealth fund chief Nicolai Tangen called him “the best investor Europe has ever had.”

Hohn's recent 13-F filing with the U.S. Securities and Exchange Commission reveals that his top American holdings include GE Aerospace, Microsoft, Visa, and Meta. The British investor’s philosophy centers around identifying companies with high barriers to entry and resilient earnings power — and holding them for the long haul.

GE Aerospace: TCI’s top pick in an unshakable industry

TCI’s largest U.S. equity holding is GE Aerospace — a company Hohn describes as operating in a near-impenetrable industry. The firm also holds shares in Safran, GE’s European engine-manufacturing partner, though it does not appear in the U.S. filing as it’s not listed in the States.

“We like that space because the barriers to entry are extremely high,” Hohn explained at an investment conference hosted by Norway’s sovereign wealth fund. “It’s so complicated to make this product that there have been no new entrants for 50 years.”

Aircraft engine makers generate most of their profits from long-term maintenance and spare parts contracts, rather than upfront sales. The complexity of the technology, regulatory constraints, and limited customer base (airframers usually only support one or two engine types) create a durable competitive moat.

Microsoft: The power of incumbency and bundling

Hohn increased his stake in Microsoft — TCI’s second-largest U.S. holding — by 24% in the first quarter. He pointed to Microsoft’s ability to outmaneuver competitors by leveraging its installed base and product integration strategy.

Referencing Microsoft Teams’ dominance over Zoom, Hohn explained, “Zoom may be the better product, but Microsoft won the battle because they had the installed base.” The software giant’s ability to bundle services effectively, and offer them to existing enterprise customers, adds a barrier that few challengers can overcome.

Visa and Meta: Betting on network effects

Another core concept in Hohn’s investment thesis is network effects. He cites Visa and Meta Platforms as companies that benefit from massive user bases and entrenched utility. Visa, TCI’s fourth-largest U.S. position, offers secure, real-time payments infrastructure that is incredibly hard to replicate at scale.

Though Meta has faced scrutiny and volatility, Hohn remains invested in the social media giant due to its user lock-in and advertising strength. Both companies exemplify what Hohn considers the hardest market advantage to disrupt — deep, embedded ecosystems.

Alphabet: A calculated risk

Despite Hohn’s preference for companies with structural defensibility, TCI’s smallest U.S. holding is Alphabet. He describes it as “maybe our most risky investment,” noting concerns over the potential fragmentation of search traffic and increased competition from new AI-enabled platforms.

While Alphabet retains strong positions in YouTube and cloud computing, its core search engine business could face long-term erosion. Hohn acknowledged that Alphabet’s protective moat isn’t as robust as his other picks.

Long-term focus and patience pay off

What sets Hohn apart from many investors is his long-term perspective. The average holding in TCI’s portfolio is eight years — significantly longer than the institutional investor average of less than one year.

One example of this approach is Moody’s, which Hohn bought during the 2008 financial crisis, sold, and then repurchased. He also holds shares in S&P Global, recognizing both firms’ essential role in global finance through credit ratings.

“These companies have recurring and predictable revenue,” Hohn said, citing Moody’s consistent 10% average annual growth rate over the past century. “If you have a great company, it will grow intrinsic value.”

Hohn avoids low-barrier industries like airlines

Despite his sharp insights into growth opportunities, Hohn remains cautious about sectors with weak structural protections. “The airline industry over 100 years has had profitless growth because they have low barriers to entry,” he noted, explaining why TCI avoids investing in carriers despite growth potential.

A high bar for valuation — but growth trumps multiples

Hohn also downplays the obsession with valuation multiples. “Multiples matter less than the growth when you look at it over a longer period,” he told attendees.

In a market chasing short-term returns and flashy IPOs, Chris Hohn’s steadfast focus on economic moats and long-term value creation remains a rare discipline — and a blueprint for sustained outperformance.

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