Which Sectors Offer Breaks According to This Billionaire Investor?

Gabelli also said that biotechnology stocks are a bit of a challenge. He sees it as a subcomponent of health and wellness, a sector he says people can analyze by looking into what people will likely be eating in the future. He says that GAMCO likes yoghurt, and connects benefits which can be reaped from yoghurt stocks to General Mills, Inc. (NYSE:GIS) which makes cereals and of which GAMCO owned 2.56 million shares at the end of the second quarter.

In the healthcare sector, the billionaire investor said that opportunities can be seen in the diagnostics category. This is whether for companies doing DNA testing and for body parts treatments and makers for the aging population. In real estate, Gabelli said that there are opportunities, depending on the regions you look at and which subsectors of the real estate sector you look at. As an example, he said there is a bubble in Manhattan, where real estate prices are very high. He said that when you look at reports for the year, you see some builders having problems but also having backlog.

Gabelli then turned to non-third-party paid spending on companion pets. The money spent on cats and dogs in the U.S., of which he says there are 84 million and 77 million in the country, respectively, is very high and is expected to rise. Specifically, he said that generic drugs for pets may be one niche in the biotechnology subsector which may be worth looking at.

GAMCO Investor’s top three picks by the end of June were DIRECTV (NASDAQ:DTV), with 3.43 million shares worth about $318.55 million, Bank of New York Mellon Corp (NYSE:BK), with 6.68 million shares worth about $280.48 million, and Cablevision Systems Corporation (NYSE:CVC), with 11.48 million shares worth about $274.93 million.

Disclosure: None