In recent weeks, we’ve had three investing legends — Stan Druckenmiller, Carl Icahn and Warren Buffett — all suggest that the stock market is fully valued.
Now Julian Robertson, the 81-year-old founder of Tiger Management, has said the same thing in an interview with CNBC’s Maria Bartiromo on “Closing Bell” today.
Robertson also thinks we’re in the middle of a bubble market right now and when it does burst the reactions will be “pretty bad.”
Here’s an excerpt from Robertson’s interview with Bartiromo courtesy of CNBC. (Emphasis ours).
MARIA BARTIROMO: Thank you. So let’s talk about– the environment– with which you find yourself investing. The broad economic landscape first. How would you characterise it?
JULIAN ROBERTSON: Well, I would– characterise it as precarious. And– I think everyone knows that. And– I think that– rather than just sitting back and– saying, “What if this happens or that happens”– we go ahead and find good companies and invest in them and– bad companies and– them.
MARIA BARTIROMO: And of course you are one of the most-followed person in finance. Where do you see the sweet spot in the market right now?
JULIAN ROBERTSON: I don’t see any particular sweet spot. But I do see sweet stocks that I really love and like and– think are going to do well. And– one is– a company that– probably makes that beautiful toenail polish you’ve got on. A company called Ulta. And it has just beautiful beauty salons all over the country.
And it sells all the great products. And it’s growing– probably at 25%– or so, will grow that way over the next three or four years. This year won’t be quite that good. But– it is just amazing what’s happened. And– how well they’ve caught this great movement. And– we’ve interviewed a lot of women and Ulta is where they’re going.
MARIA BARTIROMO: Is that right? So what are the screens you look at in terms of finding some of these companies? Is it revenue growth, is it management ownership? What are some of the most important screens that you look at when you pick stock?
JULIAN ROBERTSON: Well, I– one of the things that I’m particularly interested in is– stocks and who’s already picked them. And– we’ve had some really good people here who have excelled in certain fields and– I love to see really what they had bought recently. And– Ulta is one of those stocks. And– I think it’s going to be a real good one for next year, so.
MARIA BARTIROMO: Hmm. So this is not really a sector call? This is a specific-name stock picking?
JULIAN ROBERTSON: That’s really the way I’m looking at stocks primarily now. I think we’re in the middle of a kind of a bubble market, where it’s going to take something– bubble-like to happen. And– prick the bubble and we’ll probably have pretty bad– reactions to the breaking of the bubble. But– probably not right now. And somehow I think we’ll wallow through the political and fiscal crisis we have in front of us. And then we’ll sort of see what happens.
MARIA BARTIROMO: So when you look at the broad averages, you think that– this market’s full of value then?
JULIAN ROBERTSON: I think the market is reasonably– yes, is fully valued.
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