3 Stocks with 'Reasonable' Valuations: 5-Star Manager

Markets fell on Tuesday as the strengthening U.S. dollar chased buyers from equity markets. How should investors prepare their portfolios? Ken Croft, chief investment officer and portfolio manager of Morningstar 5-star-rated Croft Value Fund, shares his investment strategy and stock picks.

“We’re very long-term oriented,” Croft told CNBC.

“We doubled down on some names that were trading at excessively low valuations—so that’s helped out a lot this year."

We're "also taking advantage of buying some companies that had good balance sheets to increase our market share, and come out of this crisis hopefully even stronger.”

Croft said he is mostly interested in companies that have not participated in the rally.

“A lot of those are some of the more blue chips, steady companies that are still selling at very reasonable valuations,” he said.

Croft's Recommendations:



Valmont Industries

  • Watch Croft's Previous Appearance on CNBC (Nov. 10, 2009)

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Morgan Stanley

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Bank of America


Kroft owns shares of CSCO, BAX and VMI via owning shares of his CLVFX fund.