With stocks setting new all-time highs this week, legendary value investor Mario Gabelli shared three of his top picks for the second half of 2014.

Mario Gabelli On His  Three Favorite "I" Stocks

“The market—based on earnings, based on multiples, based on valuations—is OK, but there’s no margin of safety, and you can have a shock,” he said Thursday on CNBC’s “Halftime Report.”

Mario Gabelli Reveals Second-Half Playbook