John Buckingham (Trades, Portfolio), CIO of AFAM Capital, touted biotech stocks and Apple (AAPL, Financial) in an interview with CNBC Tuesday.
Buckingham said liking biotech stocks may be unusual for a value investor, but many trade at inexpensive valuations. As examples, he named Gilead (GILD, Financial) and Amgen (AMGN, Financial). The political issues surrounding the companies do not scare him for several reasons, he said, but rather create a compelling buying opportunity.
The investor also discussed Apple, which he bought at a $1 cost basis when sentiment was poor and the balance sheet was in excellent shape. A similar environment has dropped the mammoth tech company more than 26% over the past year.
"Equities have delivered excellent returns for those who don’t get scared out of them. So we’re always focused on the long term prospects of our stocks," Buckingham said.
"But it’s impossible in our opinion to successfully time the market. You see moves like yesterday, today, last week. It goes up, it goes down. But those who can stay the course and focus on the fundamentals of their companies usually do well."
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