Mario Gabelli: buy baseball

Mario Gabelli, founder, chairman and chief executive of GAMCO Investors, thinks investors should own a piece of a baseball team.

889_MW_P16_strategy_guru
Mario Gabelli, founder, chairman and chief executive of GAMCO Investors

Last week's market sell-off spurred by Donald Trump's imposition of $50bn in tariffs on 1,300 Chinese products was part of the "old normal", says veteran investor Mario Gabelli. "Markets go up and down, and you just take that into volatility," he told Fox Business. The US remains attractive as an investment destination. "If I'm in the rest of the world, what I like about the US is the rule of law on more favourable taxes to a more favourable regulatory environment and a market system with all of the speed bumps and all the problems and all the potholes still is a very good place to invest."

More specifically, Gabelli advises investors to own a piece of a baseball team. The Liberty Braves Group, which indirectly owns baseball team the Atlanta Braves, has "a real-estate facility and over the next three or four years it's going to improve dramatically, and I think you'll make 50%, 60%... More important, for your grandchildren, you should buy... you should own a piece of the Atlanta Braves."

Overall, in his view, the stockmarket simply isn't overheated. The "animal spirits in the markets" have been re-awakened by Trump's tax reforms and solid corporate profits, which in turn is creating a new wave of merger activity and resulting opportunities for investors, Gabelli tells CNBC. New priorities in Washington around spending on infrastructure and defence, coming on top of the tax reforms, could also continue to propel the markets higher. "I'm still very optimistic as I generally am over the next six to nine months."

Recommended

The British equity market is shrinking
Stockmarkets

The British equity market is shrinking

British startups are abandoning public stockmarkets and turning to deep-pocketed Silicon Valley venture capitalists for their investment needs.
8 Nov 2019
Being unpopular can make life easier for companies – just ask BP and HSBC
Investment strategy

Being unpopular can make life easier for companies – just ask BP and HSBC

When you're as hated as banking and the oil sector, it doesn't take much to pull off a nice surprise. John Stepek explains what that means for investo…
27 Oct 2020
Robin Geffen: dividend cuts aren't all down to Covid
Stockmarkets

Robin Geffen: dividend cuts aren't all down to Covid

The seeds of recent dividend cuts and cancellations were sowed many years ago, says veteran investor Robin Geffen.
25 Oct 2020
Dividend payments will take a long time to recover
Income investing

Dividend payments will take a long time to recover

Companies are gradually resuming dividend payouts, but we can expect only a modest rebound in 2021, says Cris Sholto Heaton.
25 Oct 2020

Most Popular

The Bank of England should create a "Bitpound" digital currency and take the world by storm
Bitcoin

The Bank of England should create a "Bitpound" digital currency and take the world by storm

The Bank of England could win the race to create a respectable digital currency if it moves quickly, says Matthew Lynn.
18 Oct 2020
Don’t miss this bus: take a bet on National Express
Trading

Don’t miss this bus: take a bet on National Express

Bus operator National Express is cheap, robust and ideally placed to ride the recovery. Matthew Partridge explains how traders can play it.
19 Oct 2020
Three stocks that can cope with Covid-19
Share tips

Three stocks that can cope with Covid-19

Professional investor Zehrid Osmani of the Martin Currie Global Portfolio Trust, picks three stocks that he thinks should be able to weather the coron…
12 Oct 2020