The Effect of Quantitative Easing on the 50 Year Value Stock Picking Methodology of Super Investor Arnold Van Den Berg

Wall Street Transcript

67 WALL STREET, New York - November 26, 2013 - The Wall Street Transcript has just published its current Investing Strategies Report. This special feature contains expert industry commentary through in-depth interviews with highly experienced Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Large-Cap, Deep-Value - Bottom-Up Stock Selection - Repurchase Activity - Value Oriented Strategy - Investment Risk Management Strategies - High-Quality Blue-Chip Companies - Free Cash Flow Yield - Alternative Investing, Ultimate Returns

Companies include: Jacobs Engineering Group, Inc. (JEC), CDI Corp. (CDI), Corning Inc. (GLW), Intel Corporation (INTC), International Business Machine (IBM), MDC Holdings Inc. (MDC), Toll Brothers Inc. (TOL), Layne Christensen Co. (LAYN), Alcoa, Inc. (AA) and many others.

In the following excerpt from the Investing Strategies Report, Arnold Van Den Berg discusses his investment methodology and current top picks for investors:

TWST: Are there any other investment themes you are working on?

Mr. Van Den Berg: Yes. Housing is another area. While we bought several builders a few years ago when real estate was at its low, we sold most of our positions over this past year because we felt their stock prices were getting a little ahead of themselves. Currently, some of these builders are starting to come back down and look interesting. Two stocks we think are worth watching are MDC Holdings (MDC) and Toll Brothers (TOL).

Another area we continue to invest in is commodities. While many people believe the supercycle in commodities is over and that they have hit their peak, and in fact most commodities have been coming down since 2011, we do not see it this way. With many of the world's major economies printing money, the potential for higher inflation sometime in the future should not be ignored. We can look at Japan's economy for a precedent here. In 2000, Japan ran up its money supply, and then between 2005 and 2007, it pulled the money back out of the system, so Japan never had the cost of having high inflation. The flip side here is that its economy hasn't grown for the past 10 to 15 years.

So the big thing we ask ourselves is, will the Federal Reserve be able to pull back out all of this liquidity that it has injected into the system through its various quantitative easing? We hope so. However, we are starting to believe that...

For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

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