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You're guaranteed to make a lot of money on these stocks, says a well-known billionaire investor

Jamie Cameron
13. 11. 2022
5 min read

Legendary and rather resolute investor Leon Cooperman is skeptical about the current situation. Despite this, he believes in a few titles that he says should excel in these difficult times.

Leon Cooperman believes that despite the bad situation, there are attractive opportunities

Leon Cooperman is an American billionaire hedge fund owner who is known for having founded the hedge fund Omega Advisors. This fund was based in New York in the United States and Mr Cooperman closed it in 2018. Now, the investor manages his wealth through the family office, a private company that is in charge of overseeing the personal net worth of wealthy individuals and families.

It should be noted that Cooperman is really no slouch. His active management has achieved some very respectable results. The fund has appreciated 12.4% per year since its inception.

In an interview given to CNBC television in June 2022, Cooperman shared his views on the current turmoil rocking the stock markets. He outlined that in his opinion, the current situation follows the rise in popularity of some of the biggest speculative products in history, such as special purpose acquisition companies (SPACs) and various cryptocurrencies. The billionaire shared his opinion that the bull market is unlikely to return anytime soon. Stock market returns will be "modest" in the near future, according to him. He also took a sharp swipe at Cathie Wood. He said that the consequences of previous years in which speculative titles, meme stocks and illogically valued companies thrived will continue to plague the market and especially investors like Wood for a long time to come.

https://www.youtube.com/watch?v=xDmpJYJP40c

But at the same time, even in the current situation, he believes in titles that should overcome the turmoil and poor market conditions. All of which, of course, he also holds in his portfolio. Let's take a look at a few of them.

To begin with, this will come as no surprise. Microsoft $MSFT-0.2% is one of the largest technology companies in the world. It was originally known for its Windows operating system, but has now diversified its business to get involved in hot markets and industries such as consumer electronics, cloud computing and gaming - you can read more about that here, for example: Arbitrage Game: Activision Blizzard shares now offer up to 32% discount. Buffett is investing, should we be too?

Microsoft continued its diverse approach to business this summer when it announced it was part of a partnership that will focus on developing sustainable aviation fuels. This approach will look to use carbon dioxide and renewable energy to produce fuel. Microsoft founder Bill Gates is known to try to help in any way he can. This is especially in the areas of ecology and sustainability. This move is proof of that. Cooperman probably doesn't look at Microsoft's environmental strides all that much, but he clearly likes the numbers. He holds an $82 million stake here.

If this is a sector-wide tip, then Cooperman probably won't surprise the observant investor in any major way. Energy is still Cooperman's number one choice, but he noted that he's getting nervous because everyone seems to like energy stocks now... too much. Still, he sees opportunities in companies like Paramount Resources $PRMRF.

A green chart is relatively rare this year. But for an energy company, nothing surprising

Even though the stock is up a lot (like most energy names), it still looks cheap to him, he said. The company is able to produce a barrel of oil for about $31 and sells barrels for more than $80. Moreover, production is growing at double-digit percentages.

Cooperman also expects the company to raise its dividend by 20 to 30 percent and announce a buyback during its upcoming earnings report. "I don't find anything wrong with that," Cooperman said. He has yet to find 😂

Cigna Corporation $CI-0.2% is one of America's oldest healthcare, benefits and insurance providers. The company was founded shortly after the American Revolution in 1792 and is currently headquartered in Bloomfield, Connecticut.

Leon Cooperman's family office holds a $103 million stake in Cigna Corporation, which comes from ownership of 450,000 shares of the company. Understandably, this is a sector that is relatively recession-proof. In the US, insurance is all over the place, but it is safe to assume that people are more likely to forgive themselves in a crisis for other things than paying for insurance.

https://www.youtube.com/watch?v=DZqZIVtejtk

What about you, do you own any of these?

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Disclaimer: This is in no way an investment recommendation. This is purely my summary and analysis based on data from the internet and a few other analyses. Investing in the financial markets is risky and everyone should invest based on their own decisions. I am just an amateur sharing my opinions.

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