Guru Investors' Investment Picks for 2009

Based on the investor poll, commodities seem to be the most appealing investment for 2009. Followed by stocks, bonds and cash as the worst asset class for the year.

In this post I would like to gather opinions about investing in 2009 from top investor gurus. Let me start with Warren Buffett. Warren called the stock market bottom already in mid 2008 and has started to add equity positions to his holdings. Last actions show buying interests in railroad companies, and he increased stake in Burlington Northern (BNI). Despite declining volume, earnings have gone up by 19%. Other interesting picks from the industry are Union Pacific (UNP) with 35% earnings growth or CSX Corp (CSX) with 16%.

Other top investors, Donald Coxe and David Winters, like railroads. Companies will benefit from low energy costs, and their P/E ratios vary in range from 6 - 8 for the top companies in the sector with book value equalling to the current share price. Amazing growth rate makes attractive PEG ratios.

George Soros is one those investors betting on an oil price rebound. His most favorite in Brazilian Petrobras (PZE). In February he also upped stake in Best Buy (BBY).

In conclusion, let me give you one tip for the book Guru Investor. You can find out and follow some good tips from the past from investors like Peter Lynch, Benjamin Graham, Warren Buffett or others. The book is now discounted on Amazon (AMZN) by 34%.

Comments

[Mad Hedge F...:]

Traders looking for the Next Big Play are keeping a laser like focus on two key commodities. Chinese stockpiling prompted copper to break out of its recent trading range to the upside to $1.70, taking lead producer Freeport McMoran (FCX) up 30% on the week. Crude rose 15% to a high of $46. These impressive moves happened during a week when global equity markets were in complete freefall. This suggests that the bulk of the world’s growth will be in emerging economies, and that the next round of commodity buying will be even more ferocious than the last. Since I believe that the future is all about the ascent of hard assets over paper ones, this is music to my ears.

Mar 09 11:57 AM

[bassmaster17:]

It seems the BNI chart is showing capitulative signs

Mar 10 11:42 AM

[bassmaster17:]

I see Barakett has hopped on board with Buffett.

Mar 19 09:34 AM