The Value Investing Congress is taking place this week in New York City. The Congress, an incredibly valuable forum where some of the world's best value investors come together and share their insights and stock ideas with attendees, is quickly becoming the go-to event for investors. Yet seats are limited to this semi-annual event. But while you miss out on the valuable presentations, investors can still gain great value from the stock ideas presented.

IN PICTURES: 9 Simple Investing Ratios You Need To Know

Buying Hard Assets
With the massive influx of currency being added to the global financial system, it's no surprise that many value investors are favoring hard assets. Assets like gold, agricultural commodities and metals were favorites of Passport Capital's John Burbank. Burbank is quite bearish on the current financial state of the U.S., mainly worried that current spending levels are unsustainable. Burbank mitigates this concern by buying companies with hard assets that he feels will face great demand in the future. One of his favorite assets is crop nutrient potash. China will continue to need growing amounts of potash as well as nitrogen and potassium in order to meet its food productions goals. Burbank has huge stakes in the major fertilizer companies including Mosaic (NYSE:MOS) and CF Industries (NYSE:CF).

Speaking of hard assets to counteract financial turmoil, gold is one asset where value investors fall on both sides of the argument. According to Burbank, gold is a "must have" investment in today's world. Unfortunately, many fund managers prefer to own physical gold which could be difficult for the individual investor. The reason is that owning gold through the SPDR Gold ETF (NYSE:GLD) carries with it administrative expenses. (For more, see 5 Gold Ideas Off The Beaten Path.)

Dividends Matter
Burbank is also a fan of blue chip yield plays that are currently yielding well above Treasuries. One name, Microsoft (Nasdaq:MSFT) is also a pick of Lee Ainsle of Maverick Capital. This cash cow currently yields nearly 3% and recently announced a dividend increase. Other names mentioned as quality yield plays included Dr. Pepper (NYSE:DPS) and Kraft (NYSE:KFT) both of which yield nearly 3% and 4%, respectively. (For more, see Dividend Yields That Beat Bonds.)

Stay Tuned
As more of the Congress continues with its slate of value investors presenting, stay tuned for more investment ideas and themes to consider in this economy. (For more, see The Value Investor's Handbook.)

Use the Investopedia Stock Simulator to trade the stocks mentioned in this stock analysis, risk free!

Related Articles
  1. Mutual Funds & ETFs

    ETF Analysis: United States Gasoline Fund

    Learn about the United States Gasoline Fund, the characteristics of the exchange-traded fund, and the suitability and recommendations of it.
  2. Mutual Funds & ETFs

    ETF Analysis: United States 12 Month Oil

    Find out more information about the United States 12 Month Oil ETF, and explore detailed analysis of the characteristics, suitability and recommendations of it.
  3. Mutual Funds & ETFs

    ETF Analysis: ProShares Ultra Nasdaq Biotechnology

    Find out information about the ProShares Ultra Nasdaq Biotechnology exchange-traded fund, and learn detailed analysis of its characteristics and suitability.
  4. Mutual Funds & ETFs

    ETF Analysis: Direxion Daily S&P Biotech Bull 3X

    Learn more about the Direxion Daily S&P Biotech Bull 3x exchange-traded fund, a new triple-leveraged ETF tracking biotechnology equities.
  5. Mutual Funds & ETFs

    ETF Analysis: First Trust Health Care AlphaDEX

    Learn more about the First Trust Health Care AlphaDEX exchange-traded fund, an indexed fund that uses an advanced stock selection methodology.
  6. Investing

    Redefining the Stop-Loss

    Using Stop-losses for trading doesn’t mean ‘losing money’, but instead think about the money you'll start saving once you learn how they work.
  7. Mutual Funds & ETFs

    ETF Analysis: PowerShares FTSE RAFI Emerging Mkts

    Learn more about the PowerShares FTSE RAFI Emerging Markets ETF, a fundamentally weighted fund that tracks emerging market equities.
  8. Mutual Funds & ETFs

    ETF Analysis: iShares Cali AMT-Free Muni Bond

    Learn more about the iShares California AMT-Free Municipal Bond exchange-traded fund, a popular tax-advantaged ETF that dominates its category.
  9. Fundamental Analysis

    10 Major Companies Tied to the Apple Supply Chain

    Apple has one of the best supply-chain models. Here are some of the top businesses involved, and the benefits and challenges for all.
  10. Mutual Funds & ETFs

    ETF Analysis: SPDR S&P Emerging Markets Dividend

    Learn more about the SDPR S&P Emerging Markets Dividend Fund, a yield-focused exchange-traded fund tracking global emerging economies.
RELATED TERMS
  1. Equity

    The value of an asset less the value of all liabilities on that ...
  2. Exchange-Traded Fund (ETF)

    A security that tracks an index, a commodity or a basket of assets ...
  3. Profit Margin

    A category of ratios measuring profitability calculated as net ...
  4. Quarter - Q1, Q2, Q3, Q4

    A three-month period on a financial calendar that acts as a basis ...
  5. Debt Ratio

    A financial ratio that measures the extent of a company’s or ...
  6. Price-Earnings Ratio - P/E Ratio

    The Price-to-Earnings Ratio or P/E ratio is a ratio for valuing ...
RELATED FAQS
  1. Can mutual funds invest in IPOs?

    Mutual funds can invest in initial public offerings (IPOS). However, most mutual funds have bylaws that prevent them from ... Read Full Answer >>
  2. How do dividends affect retained earnings?

    When a company issues a cash dividend to its shareholders, the retained earnings listed on the balance sheet are reduced ... Read Full Answer >>
  3. What is the formula for calculating compound annual growth rate (CAGR) in Excel?

    The compound annual growth rate, or CAGR for short, measures the return on an investment over a certain period of time. Below ... Read Full Answer >>
  4. What is the difference between called-up share capital and paid-up share capital?

    The difference between called-up share capital and paid-up share capital is investors have already paid in full for paid-up ... Read Full Answer >>
  5. When does the fixed charge coverage ratio suggest that a company should stop borrowing ...

    Since the fixed charge coverage ratio indicates the number of times a company is capable of making its fixed charge payments ... Read Full Answer >>
  6. Why would a corporation issue convertible bonds?

    A convertible bond represents a hybrid security that has bond and equity features; this type of bond allows the conversion ... Read Full Answer >>

You May Also Like

COMPANIES IN THIS ARTICLE
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!