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Zacks Value Investor Highlights: Occidental, Anadarko, Avid, SYNNEX and j2 Global

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For Immediate Release

Chicago, IL – May 3, 2019 – Zacks Value Investor is a podcast hosted weekly by Zacks Stock Strategist Tracey Ryniec. Every week, Tracey will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. To listen to the podcast, click here: (https://www.zacks.com/stock/news/407888/3-tips-for-building-a-buffettbeating-portfolio)

3 Tips for Beating a Buffett-Beating Portfolio

Welcome to Episode #139 of the Value Investor Podcast.

Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks.

This week is the Berkshire Hathaway annual meeting in Omaha.

Usually, it’s a lovefest between Warren Buffett and the thousands of shareholder-fans but Barron’s recently pointed out that Berkshire’s stock (BRK.B - Free Report) has been under-performing the S&P 500 for the last 5, 10 and 15 years.

Berkshire is also sitting on $110 billion in cash, which isn’t doing much for the stock either.

Just this week, it was revealed that Berkshire had pledged $10 billion in an investment for Occidental (OXY - Free Report)  to buy Anadarko , which is now the subject of a hostile bid with Chevron.

But the $10 billion is a drop in the cash bucket. What will they do with the other $100 billion?

All value investors are struggling in a market where growth stocks are king, but there are ways value investors can do better than Warren Buffett and his investing lieutenants.

3 Tips for Building a Better Portfolio

1.       Think Small

Berkshire Hathaway is too big now. Buffett has billions to invest. He can’t mess around with a bunch of small cap companies.

But you can.

Avid Technology  is the platform that powers film, television and music. It has a market cap of just $319 million. It’s cheap, with a forward P/E of only 11.3.

2.       Think Technology

Warren Buffett has mostly eschewed technology companies, with IBM and Apple being the exceptions.

But the rest of us shouldn’t.

There are plenty of technology stocks that are also values right now.

SYNNEX (SNX - Free Report)  is one of those. This technology services company has a price-to-sales ratio of just 0.3.

Shareholders also get a dividend, currently yielding 1.5%.

3.       Think Digital

Warren Buffett has been a big fan of newspapers in the past, mostly for their amazing advertising moat in the classified ads.

But the Internet destroyed that moat and replaced it with digital media using display advertising.

Now, subscriptions are king and j2 Global  is trying to get in on the changing digital media landscape. It operates a bunch of sites, including AskMen, Geek.com and Offers.com along with Everyday Health.

It is still cheap, with a forward P/E of just 12.9.

What else should you know about building a Buffett-beating portfolio?

Listen to this week’s episode to find out.

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Tracey Ryniec is the Value Stock Strategist for Zacks.com. She is also the Editor of the Insider Trader and Value Investor services. You can follow her on twitter at @TraceyRyniec and she also hosts the Zacks Market Edge Podcast on iTunes.

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