Charlie Munger on His Investment Strategy and Favorite Stocks
The airline industry is a cyclical industry. The cyclical sector has a sizable correlation with the various phases of the business cycle.
The Shanghai Composite Index (SSE) showed a huge fall in performance at the beginning of 2016 since there was a huge contraction in China’s manufacturing PMI.
On May 16, 2016, Berkshire Hathaway (BRK) took a new stake worth $1.0 billion in Apple (AAPL). That came after Apple reported its 1Q16 earnings on April 26, 2016.
Charlie Munger discussed some of his strategies and favorite stocks at the annual meeting of the Daily Journal in February 2017.
Janus Capital’s Bill Gross said on January 20, 2017, Trump’s inauguration day, that there will be more investing during this presidency.
Goldman Sachs believes we may see a great market disruption in the present scenario. It believes more pressure on immigration could affect some US businesses.
Some investment firms are waiting for a change in policy so they can reevaluate their positions accordingly.
On February 3, 2017, a team of Goldman Sachs (GS) analysts wrote, “One month into the year, the balance of risks is somewhat less positive in our view.”
In his January 2017 investment outlook, Gross said that since the US election, optimism has dominated risk markets.
Bill Gross believes the central banks’ QE (or quantitative easing) program is a never-ending process that will likely continue in the future.
In an interview with Bloomberg Television on February 3, 2017, Gross said that he is skeptical about real US economic (QQQ) (IVV) growth.
Bill Gross said in his February investment outlook that the debt on central banks’ balance sheets rose by $10 trillion from 2003 to 2016.
According to the International Monetary Fund, global debt reached $152 trillion in September 2016.
When asked about which sector he is bearish on during an interview with CNBC, Bill Miller said that he is bearish on oil stocks.
Bill Miller discussed Amazon (AMZN) in a recent interview with CNBC. Amazon (AMZN) is one of Bill Miller’s big picks in the global retail space (XRT).
In the last one year, Apple has rallied about 35.9%.
According to Bill Miller, Valeant Pharmaceuticals (VRX) is correctly valued.
Bill Miller has made his big investments in the airlines, housing, financial (XLF), and the technology (XLK) sectors.
According to Bill Miller, Delta Air Lines (DAL) is well positioned financially among the airline stocks. In 4Q16, its free cash flow rose ~10% compared to 3Q16.
Miller said that if we go back 30 years to September 1987, a month before the market crash, the ten-year Treasury bond prices (TLT) were at 11x their return and equity at 15.6x.