Hedge fund manager Whitney Tilson is on CNBC this morning, reiterating his case for the kind of big, well-known blue-chips that he’s been pushing for a long time.
His argument comes down to two big ideas.
The first is that whether you believe in deflation or inflation, you really want companies with strong pricing power and gushing cash flow. And regardless of what you see on the dollar, you want companies with a big global footprint.
The other reason? Big blue chips are cheaper thane ver.
Names he likes include Microsoft (just 9.5x earnings-ex-cash), Berkshire Hathaway (a longtime Tilson favourite) and Budweiser.