Tags: value | stocks | filet | Winters

Money Manager Winters: Value Stocks Offer 'Filet Mignon for Chuck Prices'

By    |   Wednesday, 16 April 2014 08:28 AM

As formerly dominant momentum-growth stocks suffer a sharp correction, value stocks offer an attractive buying opportunity, says David Winters, manager of the $2.3 billion Wintergreen Advisers funds.

The S&P 500 index has slid 3.1 percent from its April 4 record high, while the Nasdaq Composite index has dropped 7.9 percent

As "the bloom has come off the rose [for the] most speculative securities," investors are "realizing you'd rather go for the steak than the sizzle," Winters told Yahoo. "We think there's a lot of steak out there that's available at big discounts. You can get filet mignon for chuck prices."

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Among the stocks that Winters recommends are:

Canadian Natural Resources. "They have a great history of growing the asset value and it trades at a massive discount," he explained. "The stock is very cheap, and they have a bright future."

Union Pacific. "It's a fabulous franchise, and as the economy recovers, there will be more train traffic," Winters argued.

Berkshire Hathaway. "The size makes it harder to have the wild compounding that's existed in the past, [but] we think Berkshire will be fine," he said of the company led by Warren Buffett.

Others favor value stocks too, noting that historically they have outperformed their growth brethren.

From 1968 to 2012, growth stocks (consisting of the top 20 percent of the S&P 500 based on price-earnings ratios) generated annualized returns of 7.9 percent, far behind value stocks' 13.8 percent returns, James Cullen, CEO of Schafer Cullen Capital Management, told The New York Times.

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As formerly dominant momentum-growth stocks suffer a sharp correction, value stocks offer an attractive buying opportunity, says David Winters, manager of the $2.3 billion Wintergreen Advisers funds.
value, stocks, filet, Winters
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2014-28-16
Wednesday, 16 April 2014 08:28 AM
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