During his recent interview with CNBC, Leon Cooperman discussed his stock selection criteria for this market. Here’s an excerpt from the interview:
Cooperman: My criteria to be honest with you in stock selection, given my conservative view of the environment, I remember from my CFA study days that a certain percentage of what a stock did was a function of what the market did.
I’m looking for two-cycle tested companies that have been through a couple of recessions and didn’t get blown apart. I want to be paid to wait, so I’m looking for dividend income while I’m holding a security.
A company that has the capacity, the willingness, the ability to buy back cheap stock. If I own something that’s cheap, I don’t want them to tell me it’s cheap, I want them to act and buy back stock that’s under-valued. And I want quality and reliable management. I want a discount to market valuation.
I’m generally avoiding bonds. No-one, myself included, and certainly Powell knows how high rates have to go to stem this inflation.
You can watch the entire discussion here:
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