One of my favorite things to do is follow the Gurus (Buffett,Greenblatt,etc). With the internet around, it is now easier than ever to see which stocks they are buying.
The past couple of weeks David Dreman gave me an idea of what he likes. First, David Dreman appeared on Consuelo Mack’s Wealthtrack on April 11, 2008. In this episode of Wealthtrack, in which he discusses the credit crisis and stock. Next, David Dreman was interviewed by Market Watch. In this interview, David Dreman talks about the skyrocketing prices and briefly touches on financials in which he states ” we are probably half way through this crisis” and “we should see higher earnings ahead (in a couple of years).” Stocks mentioned in the interview are Bank of America (BAC), Connocco Phillips (COP),Lowes (LOW) and long time holding Altria (MO).
Next, David Dreman’s monthly Fortune article was made available online. The article is set to be published on 5 de Mayo but online readers get a head start. In the article, Dreman gives his thoughts on the fed bailout of Bear Stearns (BSC). As has been a tradition of Dreman, he gives stock tips; in this case financials. Marshall & Ilsley Corp and Fifth Third Bancorp (22, FITB). And for the investor who can take greater volatility r Comerica (35, CMA).In addittion, David Dreman hints at this being a good time to purchase a first home or “movng up”. Not only does Dreman mention what to look at, but also what to avoid. In this case, avoid bonds (inflationary reasons).
In summary:
- Avoid bonds
- Cherry pick high quality banks for a couple years down the road (Wachovia)
- Take a look at lowe’s
- Demands outstrips supply in oil ; look at COP
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