The latest market top last month, subsequent swoon and recent volatile recovery have left stocks with "no margin of safety … but not overpriced," billionaire value investor Mario Gabelli told CNBC on Thursday.
As earnings from U.S. corporations pour in, the chairman and CEO of Gamco Investors characterized the reports so far as "pretty decent."
All in all, he added in a "Squawk Box" interview, the at 1,927 as of Wednesday's close was "a reasonable place to kind of pick your place and start buying stocks. … 'Mr. Market' goes up and down all the time. That's not bad."
One of the individual stocks that Gabelli likes is Graco, the maker of equipment for contractors, with a $4 billion market value.
"It's an ignored stock. No debt. Tied to housing. Great cash generator. The management comes to work everyday," he said. "There are so many companies like that we like. And if the stock can come down 10 points that would make it even more interesting. Less risk, more upside."
Gabelli owns shares of Graco and would recommend buying at current levels—saying he likes the intrinsic value.
"You got to buy it," he added. "Over the next five years, cash flow [at Fox] is going to be terrific. I think the stock doubles. Maybe even more."
Another stock double in the long-term, according to Gabelli, is truck maker Navistar.
"Truckers are getting huge ton miles. The economy is improving. The cash flow of the truckers is good," he said of Navistar, one of his top holdings.