Wall Street legend Leon Cooperman reveals tips to give investors an edge

Billionaire Leon Cooperman believes that no stock or sector is off limits when he's looking for investing. In fact, he says, he'd buy any stock or bond at the right price.

While the chairman and CEO of Omega Advisors says there's no secret sauce, he points to one thing as crucial: free cash flow. "Free cash flow gives companies the luxury to do good things, whether it's pay dividends, buy back stock, invest in new plant equipment, et cetera," he said.

Equally important is management and ownership and how they manage that cash flow.

Cooperman says he operates with the idea that stocks have a memory: "They know where they came from, so I tend to look at either the new low list or things in the middle of their trading range to get involved and I don't like to buy the new high list."

Cooperman founded Omega Advisors in 1991. The firm has approximately $3.4 billion in assets under management, according to its website.

His personal fortune is estimated at $3.2 billion.