Mark Boyar: It's Much Tougher to Find 'Value Stocks' Today Than 4 Years Ago

Tuesday, 27 Aug 2013 02:13 PM

By Dan Weil and David Nelson

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Now is a significantly more challenging time for finding stocks than in March 2009, says value investor Mark Boyar, president of Boyar Asset Management.

"It's much more difficult today than it was when the Dow was at 7,000," he told Newsmax TV in an exclusive interview. "When it was at 7,000, we were able to buy stocks like CBS for $6 a share. Today, it's over $50."

Successful value investing takes great patience, Boyar says. "As a value investor, one of the things you learn very early on is that you come very early to the party usually, and it becomes lonely," he said.

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"You're there, and nobody else is there. And it takes a while for them to show up. So you really have to have the patience of Job."

Editor’s Note: Will This Video Get Obama Fired? See the Evidence.

Value stocks often go down after you initially purchase them, Boyar says. "It's very hard to pick a bottom in stocks. So we never go all in," he said. "We buy a position, hopefully we're able to do it over a year's time."

So Boyar doesn't want his stocks to rise initially, because that would prevent him from establishing a full position.

It can take a while for Boyar's stocks to rise – up to three to four years, he says. "For example, Home Depot is a stock that we bought, and for two or three years, the stock did nothing but go down," Boyar said.

"But when they start going up, it more than makes up for the period of time that they do nothing or go down. Plus, as it's going down, you're buying more of that stock "

Looking overseas, China faces major problems, Boyar says. "They have a shadow banking system that's suspect," he said.

"If you look at the building that's going on there, . . . they have the same problem that we had a number of years ago. It's an affordability problem. They're building all of these apartments, and the average Chinese worker can't afford these apartments."

If you're looking for countries headed for trouble, seek out the ones building the world's tallest buildings, Boyar says. "China has two buildings, one that's just about completed, and they have a second one which will be the second or third tallest building in the world."

Editor’s Note: Will This Video Get Obama Fired? See the Evidence.

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