Trump Changes Gears, Now Buying Bluechip Stocks
Known more for his real estate deal-making, Donald Trump said he is now buying stocks.
Faced with no returns on bank deposits and a dicey property market, the controversial investor and TV host told CNBC that, with the market in freefall Wednesday, he stepped out of his comfort zone and purchased a basket of bluechip stocks.
"I'm not a stock person," Trump said. "I love real estate, but good real estate is very hard to get."
So even with the market tumbling in a one-day loss that would exceed 500 points on the Dow, Trump bought a slew of large-cap stocks that form the core of the industrials index.
The stocks he purchased: Bank of America, Citigroup, Caterpillar, Intel, Johnson & Johnson and Procter & Gamble.
"I love these companies. I've watched them for years and I've never owned stock in them," he said. "I went out yesterday and said, 'Look, I'm not getting interest on CDs...so I went out and bought some stock."
Trump made his investment in the stock market even though he believes "the world is a mess." While a loud and frequent critic of President Obama, Trump abandoned a potential presidential run, he said, because he wants to continue to host his NBC television show, "Celebrity Apprentice."
CNBC and CNBC.com are both units of NBC Universal, which is majority-owned by Comcast .
"Our president is lost, he's just lost," Trump said. "I don't think he has a clue."
Still, Trump said he thinks this could be a good time to buy some stocks, at least until banks start paying interest on deposits again. Coincidentally, while Trump spoke stock market futures tumbledas European banks came under intense pressure.
"It's just something I've never been much into and now I decided to do something about it," he said of the stock market. "We'll see what happens. Who knows if it's good?"