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No Guts No Glory - Pt. II

Wednesday, 16 Jul 2008 | 6:35 PM ET

Do you have the gusto to grab a stock down 50% on the year? Do you have the brass ones to buy a bank right now?

If so, then you can ride with Karen Finerman. Growth investors may win the sprint but slow riding value investors eventually bring home the big money.

No Guts, No Glory
History shows brave "value" investing beats flashy "growth" investing, with the Fast Money crew.

From Warren Buffett to Joel Greenblatt, Finerman’s peers speak softly, but carry big returns.

For her latest amazing feat Finerman puts her head directly into the lion’s mouth. No, not literally but she’s ready to roar into financials.

The stock Finerman has her eye on lost more than a quarter of its value this year due partly to the subprime crisis leaving consumers unable to pay their credit card bills. But as one of the strongest brands in the world there may be real value in this stock once the crisis subsides.

We’re talking American Express . “They are both a charge card and a credit card,” explains Finerman “and the credit part of the business is what has the Street bearish on this stock.”

“But if you break out the main transaction part of the business from their lending business and travel business, I think the Street is too aggressively discounting this stock.”

At this valuation the problems are priced in,” she says, “and you get one of the world’s premiere brand names. I got long on Wednesday.”

Read More

> No Guts, No Glory: Value Investing


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Trader disclosure: On July 16, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Macke Owns (GS), (MSFT), (USO), (WMT); Adami Owns (C), (AGU), (GS), (INTC), (NUE), (BTU), (MSFT); Najarian Owns (AAPL), (NOK), (TSO), (XLF), (GS); Najarian Owns (ANR) Puts; Najarian Owns (CSCO) Calls, (PRU) Calls, (SLB) Calls, (UYG) Calls, (YHOO) Calls; (WLT) Calls; Finerman Owns (GS); Finerman's Firm Owns (MSFT), (NOK), (SUN), (TSO), (TWX), (VLO), (AXP), (M); Finerman's Firm Owns (TGT) Calls; Finerman's Firm And Finerman Own (C) And (C) Leaps; Finerman's Firm Is Long SPX Index Puts; Finerman's Firm Is Short (IJR), (MDY), (SPY), (IWM)


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  • Chief Market Strategist for Virtus Investment Partners & CNBC Contributor

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