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David Tepper Says There's 'Nothing Wrong With Nibbling A Little Bit' For Now

Jayson Derrick

Investors willing to accept downside of 10% to 15% may want to consider buying at current levels despite the ongoing coronavirus epidemic, billionaire investor and Appaloosa Management founder David Tepper said on CNBC.

Tepper is "nibbling right now" but he expects more downside at which point he will "nibble more." There is "nothing wrong with nibbling a little bit" as current levels could prove to be close to a bottom if the aid package from the federal government is approved.

Tepper said he's buying some tech stores and health care stocks along with corporate junk loans and bank debt -- an investment consistent with prior investment strategies. Some of the names he bought include Alibaba Group Holding Ltd (NYSE: BABA), Alphabet Inc (NASDAQ: GOOG), Amazon.com, Inc. (NASDAQ: AMZN), and Micron Technology, Inc. (NASDAQ: MU).

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Tepper said stocks could see a bottom when the number of coronavirus cases in Italy either peaks or flattens while cases in New York City could see similar encouraging trends within the next 30 days. Key to any rebound would be lifting a lockdown and starting a new phase of "distancing mode."

Regardless, there are "too many variables" and those who insist on buying have Tepper's blessings but only "a little." There are many companies whose stocks will be higher over the coming years although there are others that won't be around in a few years.

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Photo snip: CNBC

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