Charlie Munger: This market is ‘even crazier’ than the dot-com bust — here are 3 contrarian stocks to help you sidestep the herd – Yahoo Finance
Charlie Munger: This market is ‘even crazier’ than the dot-com bust — here are 3 contrarian stocks to help you sidestep the herd
Berkshire Hathaway Vice Chairman Charlie Munger tends to be much more direct with his warnings and criticisms than his business partner, Warren Buffett.
Munger didn’t mince words when he said earlier this month that he considers today’s stock market environment “even crazier than the dot-com era.”
“I just can’t stand participating in these insane booms,” Munger said at the Sohn Hearts & Minds Investment Leaders Conference. “There’s no great company that can’t be turned into a bad investment just by raising the price.”
Munger, as usual, had harsh words for cryptocurrencies. He praised China’s crackdown on crypto and said he wished the technology “had never been invented.”
One way to avoid both crypto and getting burned by an overvalued market is to look at companies with stock that has dropped but seems poised for a rebound.
Here are three stocks with some bruises that fit that category. You might even be able to include some undervalued stocks in your portfolio with a little spare change.
Walt Disney Co. (DIS)
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Disney’s stock got hammered in the pandemic’s early days, shedding about 38% of its value in the month ending March 20, 2020. After rallying for much of last year, it’s down almost 15% since the beginning of 2021. Disney’s earnings in the fiscal fourth quarter, which ended Oct. 2, came in about $200 million short of expectations. Its theme parks are still operating at reduced capacity, so Q4’s results could have been much worse.
Streaming platform Disney+ is up to 118.1 million subscribers, and the company projects that figure will grow to more than 230 million by 2024. While the company says Disney+ subscriber growth slowed, revenue from subscriptions across Disney+, ESPN+ and Hulu was $4.6 billion in Q4 — 38% higher than a year before.
Disney remains a beloved global brand and says it expects international visitors to parks to pick up later in 2022 as restrictions ease. JPMorgan Chase predicts a full economic rebound from COVID-19 in 2022, and if that’s true, Disney’s theme parks could once again be packed.
Mastercard (MA)
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Mastercard’s stock has been mostly trending downward since July, and it recently hit the skids, shrinking by 17% from Nov. 16 through Dec. 1. However, it’s trending upward over the last …….
Source: https://finance.yahoo.com/news/charlie-munger-market-even-crazier-164000236.html