Ken Fisher’s Latest Stock Picks and Some Book Recommendations

By on May 17, 2012

In the latest issue of Forbes Magazine, Ken Fisher, money manager and author of several books including Markets Never Forget (But People Do): How Your Memory Is Costing You Money-and Why This Time Isn’t Different provides several investment ideas, along with books he recommends. Fisher advises he has been collecting investment books most of his adult life and one of his favorites is Edwin Lefèvre’s Stock Market Manipulation.

Fisher touts four other books including Lefèvre’s Reminiscences of a Stock Operator, Benjamin Graham and David Dodd’s Security Analysis, Roger Babson’s pre-1929 Business Barometers for Anticipating Conditions and, Modern Book Collecting by Robert Wilson.

As far as stocks go, Fisher finds value in Mattel (MAT), selling at a PE of 12 and yielding 3.9%. He also likes Forest Laboratories (FRX) whose, “future is brighter with a great stream of 17 new and upcoming products for varying ­ailments.”

Teva Pharmaceutical Industries (TEVA) also catches Fisher’s eye, “with low costs and strong emerging markets presence, expect low double-digit sales growth. It’s cheap at 14 times 2012 earnings with a 2.3% dividend yield,”

Fisher sees potential in Applied Materials (AMAT) stating, “it’s the leading supplier of chip manufacturing equipment. Folks fear weakness now tied to Europe. But I expect an upgrade in expectations as earnings increase and its trailing P/E of ten expands. You get a 3.3% dividend yield while waiting.”

Fisher is a believer in videogame leader Activision Blizzard (ATVI) considering it, “is doing surprisingly well despite an explosion of iPad, iPhone and Android games. At 11 times trailing earnings I think the stock more than discounts the risk and underestimates the firm’s strengths. It has a 1.4% dividend yield.”

Source: Forbes

Disclosure: I personally own stock in Applied Materials and Activision Blizzard.

2 Comments

  1. Bea Chermeet

    May 17, 2012 at 10:20 am

    I picked up a few shares of AMAT at 10.60

    They’ll probably go out of business.

    • Barron Maestro

      June 2, 2012 at 9:28 am

      Keep the faith Ms. Chermeet. Although things appear dire now, the precipitous decline in the price of oil and other commodities, along with the drop in mortgage interest rates, will eventually unleash a consumer spending boom the likes of which we haven’t seen in awhile. Expect the mother of all countertrend rallies soon. Of course, this should not be taken as investment advice, but merely my humble opinion.

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