Whitney Tilson's Picks
Whitney Tilson of T2 Partners LLC recently spoke with Benzinga, and discussed some stock ideas.
He first mentions Berkshire Hathaway (NYSE: BRK-A), which he believes is only 17% undervalued. Berkshire Hathaway is the safest stock in his portfolio, as it's run by Warren Buffett and Charlie Munger, two of Tilson's investing mentors. Berkshire Hathaway is a conglomerate of businesses, ranging from insurance and reinsurance, to jewelry and shoes.
The other company that Tilson mentions in the interview is Microsoft (NASDAQ: MSFT). Tilson goes on to say, that Microsoft has an incredibly strong balance sheet, as it has nearly $37 billion in cash and little debt. The company recently did a $3 billion offering to raise its dividend, and increase its stock buyback. Tilson likes the business as he believes that the conventional wisdom is that the company is a dinosaur, and technology and time have passed it by.
Tilson likes that the company is growing its earnings 50%, year over year, and as such is happy to own it. MSFT has had a negative return over the past 52 weeks, as shares have fallen ~5% in the past 52 weeks. He says that this is a not a 5 or 10 year bet, but perhaps a 1 or 2 year bet, as the technology market moves much quicker than other industries.
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