Friday, June 3, 2011

Van Den Berg: Large Cap Technology Stocks Are Cheap

An excerpt from this GuruFocus interview with Arnold Van Den Berg, founder and Co-Chief Investment Officer of Century Management:

"I believe large cap tech stocks are one of the cheapest areas of the market. Stocks like Microsoft (MSFT), Dell (DELL), Cisco (CSCO), and Applied Materials (AMAT) are names that come to mind."

Van Den Berg is yet another value-oriented investor who's lately become interested in large cap tech stocks.

"Isn't it interesting that 10 years ago the market was silly with excitement about tech stocks and willing to pay 30, 40 and 100 times earnings, yet today they sell at 8 to 10x earnings and free cash and the market yawns?"

Now, if Warren Buffett were buying tech stocks we'd really know the investing world had been turned upside down. Check out the full interview.


Long positions in MSFT, DELL, and CSCO

Related post:
Technology Stocks

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