Carl Icahn: Companies Overvalued Considering Risk Premium ~ market folly

Tuesday, October 18, 2016

Carl Icahn: Companies Overvalued Considering Risk Premium

Activist investor Carl Icahn made an appearance on CNBC yesterday to share his thoughts about the market.

He emphasized his stance that he's more and more concerned about the stock market.  He pointed to the fact that the middle class isn't seeing incomes they need, there's underfunded pensions, and rates are still too low.

Icahn said that, "A lot of S&P companies are way overvalued considering the risk premium"  He's having a hard time finding opportunities in this market but did note that some are "uniquely undervalued."

On Herbalife (HLF), Icahn continues to think that it's undervalued even after a big rally.  He reiterated that Bill Ackman (who is short HLF) is wrong about the stock and Icahn noted that HLF could still be "the mother of all short squeezes."

Icahn also noted: "If you want to be a successful investor, you look for things that are obvious but not apparent.  You have companies that there's some unique quality that aren't apparent that you buy.  Sometimes it takes years and years and years.  The activism is a catalyst for that obviously.  I think our portfolio is made up of those."

Embedded below are videos of Icahn's CNBC interview:

Video 1

Video 2

Video 3

You can view recent portfolio activity from Icahn here. And you can also check out David Tepper's interview here.

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