03/12/2013 15:50
Guru Picks 2014: Value Investor Buckingham Likes Apple, American Eagle...
It’s that time of year again when market pundits offer up outlooks and stock picks for the year ahead. Steve Forbes recently sat down with a veteran value investing money manager and newsletter editor John Buckingham of Alfrank Asset Management and The Prudent Speculator.
I’ve known John for many years and he has always remained steadfast in his approach to finding low price-to-book value and low priced/earnings stocks that his screens determine are undervalued. At any given time John invests in more than 1,000 stocks, of all market cap sizes, and he doesn’t get concerned with investment fads or Fed pronouncements.
His disciplined approach has served subscribers to The Prudent Speculator well. It has long been a Hulbert Financial Digest return winner, ranking number one on a risk adjusted basis for returns over the last 20, 25 and 30 year periods. So far this year he is up 31%. Occasionally John writes a column in Forbes Magazine and on Forbes.com. He never is at a loss for words when it comes to stocks.
There are his 13 lucky stocks for 2014. For example, John talk about how the negativity on teen apparel retailer American Eagle Outfitters AEO +0.06% is overdone. “Fantastic balance sheet, no debt and $2 per share in cash… 3.5% dividend yield” he says.
He talks to Steve about his long term fondness for Apple -0.91% as well as Cisco, Microsoft +0.85% and why, like Warren Buffett, he thinks IBM -1.22% is a great stock for 2014, “Still on track to make their $20 per share by 2015…It’s an inexpensive stock in any market,” he says.