Warren Buffett once famously said, “Be fearful when others are greedy and greedy when others are fearful.” It’s hard to argue that a 1,000-point selloff in the Dow Jones Industrial Average on Monday morning is an indication of anything other than fear in the market.
Twenty seven-year financial services veteran Tim Melvin couldn’t resist being a little bit greedy on Monday morning when the entire market seemed fearful. Melvin shared with Benzinga a couple of places that he believes the recent pullback has created value among his favorite stocks.
Adams Natural Resources Fund PEO 0.33%
One name that Melvin was buying on the dip was Adams Natural Resources, an investment fund that buys shares of big-name energy stocks such as Chevron Corp CVX 2.91%, ExxonMobil Corp XOM 0.01% and Schlumberger Ltd SLB 1.83%.
He sees value in all of these big energy names, which are already down significantly due to the weak oil price environment, and Adams currently trades at a 15 percent discount to net asset value (NAV).
“The fund has a distribution rate of over 9 percent at this price so you will enjoy solid cash flow while you wait for energy prices to recover,” Melvin adds.
Volt Information Sciences Inc VISI 1.31%
Another name that Melvin couldn’t resist buying was…
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