Julian Robertson's 3 Most Important Things To Look For in a Stock ~ market folly

Wednesday, November 5, 2014

Julian Robertson's 3 Most Important Things To Look For in a Stock

Tiger Management's Julian Robertson made his rare yearly media appearance recently on Bloomberg.  There, he talked about what the most important things are that he looks for in a stock:

Julian Robertson's 3 Things To Look For in a Stock

1) Good management:  This was the first thing he mentioned and is something you'll see strongly emphasized at most of the Tiger Cub hedge funds these days.

2)  Good product line:  This one is kind of obvious as you need to sell a product/service that people/companies need or desire.

3) Shareholder oriented:  This kind of ties back-in with #1, but he wants a company that's very stockholder friendly (presumably returning capital to shareholders, etc).

Robertson On Current Markets

Robertson also touched on some other topics during the interview.  Interestingly, he said sometimes it's good to move away from stocks and to look at currencies, saying they're "very interesting" to analyze and that there's a lot of volatility in them.  He also noted it's a "race to cheapen currencies everywhere."  

He also said there's a big bubble with bond yields being so low, causing people who would otherwise be in bonds to be in stocks.

Turning back to stocks, the Tiger man called Apple "awful cheap" and also made similar comments about Google (GOOGL / GOOG).

Robertson went on to say that Asia is the "golden place for hedge funds to be."  He says there's a ton of competition among hedge funds in the US this day and he said Asia isn't quite as competitive.  

Embedded below are the videos of Robertson's Bloomberg interview:

Video 1

Video 2

Video 3

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