Today's Stock Picks: Berkshire Hathaway, Industrials
Another Monday, another volatile market.
CNBC asked the experts what they suggest investors do now.
Bullish on Berkshire
“Usually historically when we go into recessions it’s been better to buy stocks right at the front-end of recession than when we’re deeply into them. Stocks usually bottom out well before the recessions bottom out. This is actually a pretty good time to be stepping into the market and buying some value plays… One thing that would be a great buy would be Berkshire Hathawayitself… He’s never going to pump the stock so to speak, but if you just look at the numbers in terms of cash-flown and their assets and what they have on the sidelines to put to work, it’s a tremendous franchise.”
- Mohnish Pabrai, Pabrai Investment Funds
“DRS [Technologies] is a mid-cap-- small to mid-cap company. They are a big maker of military electronics. They are bidding together with a company called Force Protection for the replacement for the Home V. That’s going to be a very competitive bid, but it’s also a very potentially big contract. And, they’ve been doing very well and their order growth has been up 30% this year.”
- Richard Tortoriello, S&P defense analyst
Look to Industrials & Natural Gas
“We do like the industrial companies… They all are big exporters or have big international operations and all of them are in a pretty good position and they’re earnings are likely to hold up a whole lot better than a whole lot of the rest of the economy as a whole. We also like things like Chesapeake [Energy] and Unit [Corporation] in the natural gas area.”
Bischel Also Recommends: Nokia and Emerson
- Andy Bischel, SKBA Capital Management CIO
Cautious on Commodities
“It’s more a function of when stocks start to leave fundamentals. And when you see parabolic trends in stock prices, you should be worried. You should not be chasing them. Investors have a tendency to chase performance. And right now, this is working; there is a lot of speculative money in the commodity world today and that’s really pushing it.”
- Tobias Levkovich, Citi chief U.S. equity strategist
Wary of Energy
“I’m not so sure about some of the energy stocks and some of the commodities that have taken a run lately—especially gold. I don’t know—once the economy starts to pick up again how they’re going to hold their own."
- Stephen Mauzy, S.P. Mauzy & Associates