Warren Buffett’s Berkshire Hathaway bought 75 million shares of Apple in the first quarter, but Mario Gabelli, a Berkshire shareholder, said the Oracle of Omaha should consider buying unknown, under-the-radar stocks instead.
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“I have a list of anything to do with companion pets,” Gabelli told FOX Business’ Liz Claman during an interview in Omaha, Nebraska, a day before Saturday’s annual Berkshire shareholders meeting. “Pet parents are the products of the day.”
Gabelli, chairman and CEO of Gamco Investors, pointed to Blue Buffalo, a pet food company acquired by General Mills. Although General Mills’ stocks tumbled after the acquisition on fears it had paid too much, the addition of Buffalo Blue ended up bolstering the company’s worth, according to Gabelli.
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Although Apple posted a record closing high on Friday after Buffett added to his holdings of the tech giant, Gabelli wondered if the multiples were too high to purchase and whether they were sustainable as interest rates rise.
Another option for Buffett, according to Gabelli, is MGM Resorts. The Las Vegas-based casino company’s hotels are the ideal place for Millennials to enjoy live entertainment.
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“They want to watch Fox, but they also want to gamble,” he said.
Another reason to invest in casinos: Gabelli said his company thinks the Supreme Court is going to rule in favor of amateur sports betting.“A lot of things are going to happen,” he said.
