Gabelli didn’t make specific comments regarding his company’s own stock during his brief CNBC interview, although plenty has been written about him and his company. For one, investors have criticized his outsized compensation package, which has contributed a significant portion to his own net worth.
Bears make note that only 40% of Gamco’s funds have outperformed their respective Lipper categories during 2012, and only 55% have outperformed over a three-year period.
I don’t feel that there is an investment opportunity in Gamco but wanted to make readers aware who look to identify a comparison to Warren Buffett’s Berkshire Hathaway Inc (NYSE:BRK.A).
Foolish bottom line
Mario Gabelli believes that GenCorp and Legg Mason are both set to double in the next year. However, all investors make mistakes, and there are others who are taking the opposite side of Gabelli’s trade. As of Jan. 31, GenCorp and Legg Mason had 19.31% and 7.88% short interest, respectively.
Personally, I wouldn’t want to bet against Gamco’s Legg Mason position, as no one understands the asset management business better than Mario Gabelli. And regarding GenCorp, it’s unquestionable that the company’s real estate is worth a considerable amount, and its core defense and aerospace business is improving. I think Gabelli is on the right side of both long-term trades.
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The article ‘Baby Warren Buffett’ Says These Stocks Will Double originally appeared on Fool.com and is written by John Macris.
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