Tuesday, 31 May 2016
Last updated 3 days ago
Nov 21 2012 | 11:00am ET
The more you hate a stock, the more Christopher Hohn likes it.
The Children's Investment Fund Management founder said this week that there is much to be gained buying "really detested stocks." And by much, he means tripling one's money.
Hohn made the statement at the inaugural Sohn London Investment Conference, gracing the London version of New York's esteemed Ira Sohn Investment Research Conference with a rare public appearance. And he used it to push the wisdom of investing in the likes of carmaker Porsche, which he called "one of the cheapest stocks in the world" and one that "could give you a triple in a small number of years" and in four different ways.
"Real deep value can be found in really detested companies," Hohn told the conference. "Sometimes you have to be deeply contrary, you have to hold your nose, even if it makes you feel sick. Sometimes great companies are deeply undervalued."
While Hohn is long Porsche, he had nothing but scorn for another carmarker, Fiat.
"It has been bankrupt twice," Hohn said of Fiat, which he is short. "It is a bad company."