Yahoo Finance How Individual Investors can beat out Warren Buffett
Warren Buffett’s reputation as a legendary investor earned him swarms of fans looking for advice on how to become the next Buffett, but his value investing strategy isn’t too complicated. In an interview with Yahoo Finance’s Rachelle Akuffo, Jonathan Boyar, President of Boyar’s Intrinsic Value Research, said retail investors have an advantage over ‘The Oracle of Omaha.’
“Berkshire, because of its size, can’t buy small-cap stocks and that’s the cheapest area of the market,” said Boyar, “So individual investors have a big leg up on buffet in that regard as there are plenty of stocks selling at significantly below intrinsic."
When asked for his top picks among the small-caps, Boyar says the following are attractive:
1. The Howard Hughes Corporation (HHC)
2. Levi Strauss & Co. (LEVI)
3. Madison Square Garden Entertainment Corp. (MSGE)
Watch our full conversation with Jonathan Boyar here.
Video transcript
JONATHAN BOYAR: Berkshire, because of its size, can't buy small cap stocks, and that's the cheapest area of the market. So individual investors have a big leg up on Buffett in that regard, as there are plenty of stocks selling significantly below intrinsic value. As for energy stocks, that's an area we generally avoid.
We don't like commodity oriented businesses. But there are plenty of names in small cap land that we find attractive.
RACHELLE AKUFFO: So give us your top five picks of the smallcaps that you find attractive.
JONATHAN BOYAR: There's a whole host of them. There's a company called Howard Hughes, which is controlled-- or chairman is Bill Ackman of Pershing Square. He keeps buying back stock-- buying stocks personally. They own Master Plan Communities. It's a great asset play.
Company like Levi Strauss that's selling for 11 times earnings, it's rare to find a great consumer franchise that's so cheap. I mean, there's just-- you can really literally run down a list-- there's Madison Square Garden Entertainment, which owns Madison Square Garden itself, and the Beacon Theater, and a whole host of other entertainment assets. So there are plenty of names that are selling significantly below intrinsic value that big investors like Buffett can't buy, but most other investors can.
