Bob Olstein: Why I like these ‘boring’ stocks

While some investors may shun "boring" stocks, veteran fund manager Bob Olstein actually finds them quite exciting.

In fact, it's in those bargain names where there is money to be made, he told CNBC.

"Macy's was boring, it didn't have same-store sales, it's been a triple for the fund," he said in an interview with CNBC's "Closing Bell."

"We have a lot of stocks in our portfolio with similar characteristics now, and that's the ones we are playing."

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Shoppers enter a Kohl's store in Peoria, Illinois.
Daniel Acker | Bloomberg | Getty Images
Shoppers enter a Kohl's store in Peoria, Illinois.

Those names include Kohl's, Oracle, ABM Industries and Marsh & McLennan.

"Our fund's at an all-time high … so we must be doing something right with these laggards. That's when you get value."

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Macy's, he noted, missed on same-store sales and revenue, but was up because it was producing free cash flow. Similarly, Kohl's has problems with same store sales and adding new brands, yet it has an 8.5 free cash flow yield.

Eventually, Olstein said, strategic investors will notice the free cash flow yields compare favorably against U.S. Treasurys.

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However, while he's a value player, Olstein warned investors to beware of value traps like IBM.

"I don't see IBM making their way out of the current chaos they are in and they don't have the same free cash flow yield," he said. "I'm not sure what business IBM is in anymore."