Advertising
DON'T BUY

He doesn't see the Gap different from other garment retailers; it's not special. He owns Lululemon instead, who have enjoyed strong growth. Go for growth. Gap is a laggard. TJX is interesting.

specialty stores
DON'T BUY

He's not positive on cars as a whole now. Electrification is a trend, yes. There will be more e-cars, batteries and maybe hybrids. That said, Tesla needs to raise capital constantly and and has no plans to create cash flow. Can Elon Musk succeed? He's innovative, so it's possible. But the car space is too risky for him. How big will be the car market be in light of ride-sharing? Car sales may even shrink in the future. (However, battery technology is attractive.)

0
WATCH

He's watching it. On their conference call Q1 there was a major misunderstanding about the guidance they gave; no, they haven't hit their peak for the year. Rather they reached the high point on their margin percentage. The street reacted negatively and sold. It was astonishing. A fine company, but he's not sure this is the best company in this space and there's a lot of competition here.

machinery
WATCH

He's watching it. Everybody needs their services as a ratings agency. Moodys Analytics has good upside, because banks are recommending this service. Moodys and S&P are similar companies and both on his watch list. A fine company.

Financial Services
BUY on WEAKNESS

A fine company he once owned. Semiconductors have had an enormous run until recently and are taking a break over the summer. Nothing wrong with that, not unusual. Enter this space in September or October. What will end this cycle
is a recession.

electrical / electronic
COMMENT

Fast food is cyclical based on gas prices. Restaurant sales took off when gas prices plunged in 2014. Also, restaurant haven't seen earnings growth vs. other consumer discretionary spaces. He doesn't see a catalyst for this stock to
improve. That said, it's had a good, long history and their foreign sales are a tailwind.

food services
DON'T BUY

He won't comment on this company, but the space instead. In the private equity industry, the best time to buy assets is during economic distress when they're cheap. Those assets go into the company's funds and rise in value. The best times to buy PE companies is during pullbacks like 2008-9 and 2011 which then benefitted from the recoveries. Also, credit spreads are narrow now and if they widen that becomes a problem, because these companies borrow to finance their purchases. He's not involved in private equity.

investment companies / funds