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Value Investor Robert Olstein: Market Is Overreacting and His Top Picks

August 10, 2012 | About:
Dheeraj Grover

Dheeraj Grover

Well-known value investor Bob Olstein, chairman and CEO of Olstein Capital Management, was on CNBC to discuss his views on the stock market, Amazon (AMZN) and why it is going down, and other attractive opportunities in the market. He said markets overreacted in 2009 and are overreacting now too.

Here are the key things he said:

-- You have to be a drunk to buy (AMZN). Valuation is too high and there is no free cash flow

-- It is all about free cash flow, free cash flow, free cash flow.

-- There are much better opportunities in the market yielding much higher cash flow yield and selling a very attractive valuations.

-- Market may head to 1600 (S&P) as earnings are strong and a lot of money is sitting on sidelines due to uncertainty. People as usual are overreacting.

-- He just took a position in Cisco (CSCO) and also likes Bed Bath and Beyond (BBBY), Macy's (M) and Agilent Technologies (A).

Here is the video:

About the author:

Dheeraj Grover
I am an individual investor with deep interest in the field of value investing. My ideas and thinking is inspired by highly respected value investors like Ben Graham, Warren Buffett, Walter Schloss, Bill Ruane and Tweedy Browne

Rating: 3.5/5 (8 votes)


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