Perspectives

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Krawez: “Investors seem to be ignoring energy right now”

December 10, 2024

Given the current global landscape and the geopolitical risks that exist today, we believe Occidental Petroleum (Ticker: OXY) is a compelling investment opportunity. “Investors seem to be somewhat ignoring energy right now,” said Brian Krawez, president and lead portfolio manager at Scharf Investments during an appearance on Reuters TV on December 10, 2024. Brian shared that OXY is highly levered to U.S. oil production and has roughly 80% of its energy reserves in the U.S. This is a reasonably priced stock, and we believe OXY could benefit from the incoming Trump administration’s plans to reduce regulations around drilling.

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Brian Krawez Discusses Walgreens on Reuters TV

December 10, 2024

The Wall Street Journal recently reported that Walgreens is in talks to sell itself to private equity firm Sycamore Partners. “The Walgreens story has been very challenging,” said Brian Krawez, president and lead portfolio manager at Scharf Investments during an appearance on Reuters TV on December 10, 2024. Brian noted how the company’s market value has gone from over $100 billion in 2015 to around $8 billion prior to this story. While competitors such as CVS Health have expanded their business—CVS acquired health insurer Aetna and a pharmacy benefit manager, Walgreens has struggled. Brian offered that this rumored deal would be an “opportunity to get rid of the [unprofitable] stores and clean up the business.”

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Lynch on Reuters: “Animal spirits have kicked in”

December 6, 2024

What’s the Eric Lynch report card on the markets? “We have a fever. Animal spirits have kicked in,” said Eric Lynch, managing director at Scharf Investments during a recent appearance on Reuters TV. The post-election rally continues with the S&P 500 having its best month of the year in November. Consumer Discretionary, Financials, Industrials, and Energy led sector returns. Bitcoin crossed the $100,000 level and meme stock Game Stop is up over 23%. Eric also shared his thoughts on the recent non-farm payroll report, the upcoming Fed meeting, and potential risks investors should be aware of in 2025.

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Brian Krawez on Bloomberg Surveillance

December 3, 2024

“Investors should curb their enthusiasm,” said Brian Krawez, president and lead portfolio manager at Scharf Investments during an appearance on Bloomberg Surveillance on December 3, 2024. Risks abound with geopolitical tensions and the potential for recession. Brian noted the similarities with the stock market now compared to the late 1990s. While the Mag 7 stocks have received a lot of attention, the average stock in the S&P 500 has outperformed the overall Index since the end of the second quarter of 2024. Brian also discussed the potential for higher interest rates if some of Trump’s economic policies, which could be inflationary, are enacted. You can see Brian's interview beginning at the 2:06:26 mark in the link below.

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Krawez: “Investors would be wise to curb their enthusiasm”

November 14, 2024

While there has been a lot of investor optimism this year, 2025 could be full of uncertainty. “Investors would be wise to curb their enthusiasm,” said Brian Krawez, president and lead portfolio manager at Scharf Investments during an appearance on Reuters TV on November 14, 2024. Brian highlights three things that investors should be aware of as we look to the new year, including heightened risk of recession, geopolitical tensions, and policy changes that the incoming Trump administration will want to enact. Also worrisome is debt, which could have an impact on the economy over the next 5-6 years.