Which Sectors Offer Breaks According to This Billionaire Investor?

Mario Gabelli of GAMCO Investors identified some sectors which may offer opportunities for investors in a discussion on Fox Business Network. Speaking to Maria Bartiromo and company, Gabelli said that infrastructure, health and wellness, and real estate are the segments that investors should be looking at while picking the next investment opportunity.

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Mario Gabelli started GAMCO Investors in 1986. As of the end of June, the fund had an equity portfolio valued at about $18.46 billion. The whole GAMCO family of firms traces back its roots to 1977 and has more than $45 billion in assets under management. GAMCO spearheads the use of an investing approach it calls the Private Market Value with a Catalyst approach which uses fundamentals and treats companies as a potential acquirer would. In April, GAMCO announced plans to split into two separate publicly-traded firms with Gabelli retaining his post as chairman and chief executive officer of the asset management business.

In the discussion on Fox Business Network, the first sector Gabelli said he sees opportunity for investors is in infrastructure. Joking that he sees how much infrastructure sucks whenever he drives, he said that problems in the current infrastructure of the country are easy to fix and will generate a lot of employment. He added that avionics, the application of electronic systems to planes and satellites, is one subset of the infrastructure sector that he is very much interested in. In terms of the more traditional infrastructure stocks, he agreed with the Fox hosts that Vulcan Materials Company (NYSE:VMC) may be a good pick. He also identified Astec Industries, Inc. (NASDAQ:ASTE) as a potential candidate for investment. He noted that once you look at the components of the narrowly-defined infrastructure components such as bridges, you see different companies such as makers of grates and other components.