Chris Meringue, Peter Lynch, Mario discussed on Bloomberg Surveillance


Karen Moscow, along with Tom Keenan Paul Sweeney and the S&P 500 little changed at the open as at 42 75 the Dow Jones Industrial Average, also little change to 33,974, and then NASDAQ, little changed at 12,930, ten year treasury up 7 30 seconds yield 2.86% that yield on the two year 3.23%. Nymex screwed oil at 1.7% of a dollar 52 at $89 59 cents a barrel. A quarter percent or $4 50 cents at 1781, ten ounce, the Euro one O one 5 5 against the dollar the yen one 34.93, and I'm looking at Bitcoin. It's up about half percent to $23,500. Tom and Paul. I think so much, Karen greatly appreciate it. First of all, there's a thing called an R squared, which is if you near one like .92 or .95, you might as well be running an index fund. You know, that's where a lot of people are. Gamey is out to .85 distant from 1.00 .85. Chris meringue is at .38. I don't want to be portfolios. He's removed from it with elite as Swedish match among others as well. Chris meringue, a guy named Peter lynch. Okay. You've talked about safety appropriately so we got Mario golly there as well. I swear I heard Mario there. Is that us? Is that our phone lines? Or is that do we have Mario? I don't know. That sounds like you've just got me. You've only got me today. That's all we want, Chris. I'll take Mario. Marangi, if I have to cut to the chase, Peter lynch used to say, all I want to know is what your 47th holding. Forget about the name stocks that you own. How are you finding value among your 47th holding right now? Yes, obviously, this is where big believers and diversification and finding companies with pricing power and stable cost structures, that's what we do pretty much all the time. And I think even more important given the inflation dynamics and supply chain dynamics that we're facing today. So we are facing we are finding value out there. The market is not as volatile as it could be, but still pretty volatile. And we're taking a lot of these companies are going to perform. And what's typically Paul, jump in here, because you know this with Chris better than me near the 47th holding of one of the Gabelli portfolios is liberty broadband. Which I think that's like a gibelli like thing. The bellies know a thing or two about John Malone. And Chris, I know you guys are really, really deep dive fundamental bottoms up investors here, but it seems like this market's being kind of pushed around first and the first 6 months of the year on the downward trend and then in the last four or 5 weeks kind of moving higher. That's a big macro issues like inflation, interest rates, all that kind of stuff. How do you frame out the market before you cut your analysts and PMs lose to kind of go do the bottoms up stuff? Yes, obviously, I think one of the things I learned certainly from O 8 is you can't stick your head in the sand. You have to have some kind of a macro view. We don't exist in a vacuum. And we've framed the market as the 6 eyes inflation interest rates infrastructure and income taxes, international relations and infection. Oh boy. I don't remember all those. But obviously the first two, inflation and interest rates being the most prominent of late. And again, we have a macro view that inflation may have peaked, but it's going to be sticky for a while. Earnings are slowing down earnings growth is slowing down. We may see some negative earnings as we had into recession at some point. But maybe it's not apocalyptic. So with that background, we're trying to find companies that have strong balance sheets, adaptable management, and that are priced attractively. What are some of the sectors that you guys kind of see that right now? Because I know, you know, just from my experience with Gabelli funds as a media analyst side, I know you guys have had a lot of success in media, telecommunications, some technology sectors. Where are you seeing those types of characteristics today? Well, you know, communication services, which includes media has not been a happy place to be as you know this year. It's been I believe the worst performing sector in the S&P. A lot of that is ad driven. We've definitely seen an ad slowdown some of it is secular as we shift to direct to consumer streaming. Those will all work out. I think one of the areas within my core competency media that we continue to like live entertainment and sports. And just to be a little timely, one of our favorite names in that space, Madison Square Garden sports MSG reported this morning. They own the Knicks and the rangers. And the rangers contributed mightily to some strong performance there. There are 12% above where they were in 2019 and looking better and the balance sheets and good shape and relative to where other sports franchises have traded a bargain. So when you look at the DES screen of what you just described, the big tech names are in that group. Is that just because of valuation, they're just too rich for the belly air. Historically, historically, that's been the case. We do actually own alphabet alphabet at times as met valuation criteria. And it looks very much like a media company, it's largely off of advertising dollars as this meta, by the way, which is also looking attractive here. So we try to be disciplined. We try to know what we know and don't know and stick to valuation. One of the things I've noticed about Gabelli and all you guys over there, Chris, is that you'll take a very long time horizon. How do you position that with your clients? Because I've known you've been in some of these even some small cap media names forever. And how do you position that with your clients in terms of generating performance? Right, well, listen, you mentioned one of those long-term holdings at the beginning, which is Swedish match, which is finally being taken over by Philip Morris International. We've owned that one for a very, very long time going back to its predecessors. We harvest regularly at irregular intervals. We try to see the part of the reason we own so many names as we try to see the portfolio with names where there's catalysts happening. What is harvest mean? Is that a CFA phrase? Well, harvest can mean a lot of things. An important part of what we do is looking for catalysts and they can take any form, our favorite, of course. Our takeovers. But that's not what we're looking for. But spin off financial engineering like spin offs, which you mentioned Liberty Media Malone is a master of. Regulatory change generational change, things like that. So is it by holding harvest or generally the case? By hold trim along the way. But our turnover tends to be very low. It's tends to be how much is our average hold is over ten years. This is so important, folks. I can't stop. This is religion. Everybody knows my affinity for mister meringue. And the guy that he works with in four, but Paul what he just said there is religion. It is. I mean, you know, you take a look at some of those holdings lists of some of these big media companies, for example, and there's other industries as well. And you see the gamco investors there, and they've just been there forever. Chris, what would calls you guys are achieving it may not have specific example, but an example where you guys bought something and said, oh boy, we screwed up. And then you just

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