Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

‘Baby Warren Buffett’ Says These Stocks Will Double: GenCorp Inc (GY), Citigroup Inc (C)

Gamco Investors

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.

Thanks for reading, and consider subscribing to my posts for more Fool ideas on outperforming the market. Requests for future articles may be submitted to fool@johnmacris.com.

The article ‘Baby Warren Buffett’ Says These Stocks Will Double originally appeared on Fool.com and is written by John Macris.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.