Holding cash until the middle of October makes sense, because that is when all the economically sensitive sectors turn positive. Wait until that time before using your cash.

Very different from Amazon (AMZN-Q). An e-commerce site, but they set up platforms for companies. Unlike Amazon, they don’t control the seller and they don’t compete with them. 90% of revenue comes from China. They also have a Cloud business that they want to grow and they have Alipay. They need to expand internationally, but can they compete on an international basis. Also, it is a very difficult thing for them to be in the Cloud business, because they are a Chinese company and people get very wary of the security. Thinks they will spin off the Alipay business. Feels Amazon has a much better business.

Management has moved away from the phone business, and has been moving into the software side. A really good job has been done on restructuring. Now they have to see more growth coming from that business. You’ll have to look for them to make some acquisitions and push their software business to a new level. Business is going to be lumpier than people think. It is not going to be a smooth transition, and you will have to expect some volatility. This is one he would look to buy on dips.

What to buy in Europe? He likes that we are seeing “return to growth” in a lot of the European economies. Unemployment is coming down. The kind of business you want to buy would be the banks. They are based on the economy of the country. Something like this is a great story. It is a global bank, but has a very strong presence in the UK and Europe. It is in all of South America and in the southern part of the US.

You are going to see a very strong season coming because of Christmas. Not an expensive stock, trading at around 18X earnings. One of the premier companies in this space. As more and more people move to online e-commerce, this will really benefit.

(A Top Pick Oct 27/16. Up 13%.) Felt that a lot of the pharmaceutical companies had been beaten up and there would be a big uptick. The stock actually went down for quite a while. They did very, very well because of their HIV and hepatitis C drug. The problem with the hepatitis C drug is that they were curing people too quickly. Just made a recent acquisition on the cancer side which pushed the stock up a great deal. He still likes this.

(A Top Pick Oct 27/16. Down 9%.) Has actually bought more of this. They are good at cutting costs and getting higher margins. What you have to expect from this company is a bigger acquisition. That’s how they operate.