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Marc Faber’s Stock Picks: CVX, XOM, OXY, CHK, NMR, DCM, MFG

February 03, 2011 | About:
gurufocus

gurufocus

358 followers
Marc Faber is a well followed investor. He got his fame for having advised investors to pull out of the stock market a week before the 1987 crash. He now lives in Hong Kong, advising institutional investors through his monthly subscribers.

To know more about him, please read the “About Mac Faber” page on his website GloomBoomDoom.com.

It is not clear to us what stocks he owns. But in the recent Baron’s Round Table, Marc Faber revealed the stocks he owns. These are some of the commentaries from his meeting:

Faber: If you have a bearish view of the world, you should be in equities and commodities, not government bonds. I would own a basket of oil-related equities such as Chevron (CVX), ExxonMobil (XOM) and Occidental Petroleum (OXY). The cheapest energy is natural gas. It is volatile and depressed. A few years ago I recommended cotton, which was around 50 cents a pound. Everyone said, "There's a big glut of cotton." That is precisely when you buy commodities -- when there is a glut and prices are depressed. Then you wait. If you buy a natural-gas ETF [exchange-traded fund] and gas prices don't move, you'll lose money. But you can buy natural-gas stocks such as Chesapeake Energy (CHK). I am not saying it is a perfect company, but if natural gas goes up, the stock can move significantly.

Faber: In 2011 the Japanese stock market could surprise investors on the upside. I would buy a basket of stocks, including Nomura Holdings (NMR), NTT DoCoMo (DCM), Mizuho Financial (MFG) and Mitsubishi UFJ Financial (MTU). You can prosper by buying what no one else wants.

Read the complete discussions at Baron’s Round Table.

About the author:

gurufocus
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