Leon Cooperan of Omega Advisors on CNBC earlier today. The videos were just post along with the transcripts. Since I have not discussed Cooperman much here is a short bio:
Leon Cooperman is the founder and chairman of Omega Advisors, a hedge fund with approximately $6 billion under management. Mr. Cooperman was the CEO and Chairman of Goldman Sachs Asset Management. He worked at Goldman Sachs for 25 years. In 1991, he left Goldman and started Omega Advisors. He was a graduate of Columbia Business School, joined Goldman at the age of 24. In 1991, Mr. Cooper founded Omega Advisors with $450 million in capital.
See below for videos and full transcript:
Is there a link between intelligence, knowledge and successful investing? At first glance, it might appear as if there is. Wall Street is known for only hiring the best and brightest. However, some of the world’s most successful investors didn’t attend the world’s best universities and don’t claim to have a higher than average I.Q. Read More
we are back in the strategy session with two gentlemen whohave been picking stocks a long time. something tough to do in this market. you pick them, hold them. hang in there for a long time. we talked oil. why do you still like ibm after all these years? ibm has not missed a beat. the company has publiclyforecast it will earn at least $20 a share in 2015. we think the number is likely to be 2150 a share. i think that means that thecompounded annual growth rate from 1350 this year to 1550 next year, compounded rate of over — about 13% a year. if ibm can sell at 15 times earnings, 2014, 2015, year goug to have a $3 that stock. the company aggressively buys back a stock that has less than 1.2 billion shares outstand. reduced that significantly over the years. bought 9% of the outstandingshares last year. 118 million shares. gross basis on net basis a little less. bought back 50 million shares the first half of year.they will spend 15 billion buying back stock this year. this is a great, great company and they are getting their revenues at 5% a year. on the issue of multiple expansion, we heard marvinearlier talking historically how low the multiple is. do you think we are ever going to be back in an environment we see higher multiples? of course. every economic expansion sow it is seeds — you don’t think we are having a recession let me point out. i would say that the economy is slower and — but i don’tthink that we are going into a recession. i think what’s happening is everyone, they are saying industrialists are the last ones to figure out in 2008. and the market is telling ussomething and they don’t see what’s going on. my guess is that i would give more credit to the industrialists. you guys have been doing this a very long time. both highly successful and don’t need to do this. why are you doing this? why are you picking stocks? exciting and challenging. you are putting your brains against the best brains in the world. it is rewarding.also, remember, the stock market in the postwar period went up79% of the time. and — you know, we are going through a very difficult period right now. what do you propose we do? there are two awkward expresses i-can’t figure out which is morerelevant. don’t retire young, you will die early. i have to figure it all out. basically i’m not giving all my money — both be doing this, i’m sure, 10, 15, 20 years from now. we are very happy to have marvin schwartz and lee with us. that’s it for this session.it’s schwab at your fingertips.