Photo: Mark Cuban
Bloomberg Markets magazine asked six billionaires to give their input on what stocks/sectors might outperform in the next 12 months.Some of the billionaires think the average investor should avoid the market, while others name specific stocks and sectors they think will pay off.
We’ve compiled their tips and insight in the slides that follow.
Mark Cuban says you should pay off debt and use the Internet to get the best bargains on household items.
Mark Cuban, who has made his billions from the sale of broadcast.com and he currently owns the Dallas Mavericks, thinks people should pay of all their debt.
He also thinks that the average investor should invest in everyday items that save money and make life easier.
That means keeping your money out of the stock market until you have better information. He believes that the stock market is rigged by professional investors and that by avoiding it, you'll save yourself stress and time.
By investing in yourself and your home, you'll be fully responsible for how your investments perform.
Denis O'Brien says to invest in telecommunications companies companies that have access to emerging markets.
Denis O'Brien, who is the sole owner of the Jamaican telecommunications company Digicel Group, is a telecommunications guru.
He says that Vodafone is one of the best available stocks and has valuable access to emerging markets, along with a solid 5% dividend.
He also believes that Vodafone has a versatile platform for all technologies and that it may soon be able to charge companies like Google and Facebook for access.
Other telecommunications companies that he thinks are undervalued include Milicom International Cellular SA and Bharti Airtel Ltd.
Vikas Oberoi says to invest in companies with strong cash flows and innovative stocks like Samsung and Apple.
Vikras Oberoi, the primary owner of Mumbai based Oberoi Realty, says he likes Apple and Samsung.
He thinks well managed companies with solid cash flows will outperform the general markets.
Peter Hargreaves, who owns 32.2% of Hargreaves Lansdown, thinks that healthcare, water and technology will outperform during the next 12 months.
In regards to healthcare, he thinks it will become even more important as living standards around the world improve and the world's population gets older. The industry's strong dividends and cash flows, along with promising innovations make healthcare an exciting sector.
He believes that water demand is clearly on the rise as the world's population continues to grow. Companies that deal in water have great sales and strong dividends, according to Hargreaves.
Heargreaves also likes tech stocks like Apple, Microsoft and Google as the world continues to crave technology and companies are using technology to improve efficiency.
Phil Ruffin, the owner of Treasure Island Hotel Casino in Las Vegas, likes hard assets that have strong cash flows that appreciate with inflation.
And Ruffin, like Mark Cuban, says that the average investor should stay far away from stocks.
John Catsimatidis believes that Romney will be elected causing the banking sector to get straightened out. He likes JPMorgan as a stock pick.
John Catsimatidis is the primary owner of the Red Apple Group in New York.
He believes that the banking sector will be straightened out when Mitt Romney is elected. Also, JPMorgan Chase is a smart place to park some cash.