The Value Trade Is in Big Tech
It probably has something to do with Warren Buffett saying that he avoids technology stocks because he doesn't understand them that causes many value investors to dismiss them as well.
What the CEO of Berkshire Hathaway (BRK.A, BRK.B) means is he can't model future cash flows with a degree of comfort. Indeed, when I look at my investment holdings, I hardly ever find myself owning tech names. Yet if you ask a value investor to describe what they seek in a value investment, the answer will usually have to do with buying an asset at a significant discount to all the cash that can be taken out of the business....565 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.
Already a Subscriber? Please login.
