Veteran investor Mario Gabelli, with over five decades of stock-market experience, has shared his recipe for success in the market. His approach involves finding good businesses with strong management, buying stocks at reasonable prices, and holding them for the long term.
Gabelli’s investment firm, GAMCO Investors, oversees $32.4 billion in assets and has a track record of outperforming benchmarks. Two of their mutual funds, Gabelli Small Cap Growth Fund GABSX and Gabelli Global Mini Mites Fund GAMNX, have consistently beaten their benchmarks by up to 6% annually over the past three and five years.
In a recent interview, Gabelli discussed his outlook on the U.S. economy, the stock market, and shared some of his favorite stock picks. He emphasized the importance of research and industry knowledge in stock picking, highlighting companies like Strattec Security, GATX, and Textron as examples of good businesses with strong management.
Gabelli also stressed the value of holding shares for the long term, not just for potential tax benefits but also to preserve wealth for clients. He looks for overlooked and undervalued companies, citing National Presto Industries and Tegna as examples of potential opportunities with catalysts for growth.
Overall, Gabelli’s investment philosophy revolves around finding quality businesses, buying at the right price, and holding for the long term. His success in the market serves as a valuable lesson for investors looking to build wealth over time.
