This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Large-cap Value Manager Is Old-fashioned Stock Picker

By Covestor

David Levine started his investing career at age 8 when he bought some silver because he thought it was cheap relative to gold.

"Then I bought some Procter & Gamble (NYSE: PG), and it was clear I didn't understand what I was doing," says Levine, a new manager on Covestor. "I was 11 when the 1987 crash hit. I was watching the market every day. I didn't know what it all meant but the crash started my fascination with the market."

Levine, who manages the Aspect Large Cap Value portfolio, invested for his family and became a broker for Prudential Securities when he was 21. He became disillusioned with being a stockbroker due to what he saw as conflicts of interest, although he continued to invest own money in the type of strategy he now offers on Covestor.

"I've always gravitated to large-cap value stocks," he said. "I have a very strong contrarian bent and I don't like overly complicated businesses."

In Aspect Large Cap Value portfolio, he will almost always hold under 20 securities.

"If you have more stocks than that, you're sort of defeating the purpose of stock picking so you might was well buy an index fund," he notes. Still, he tries to limit individual positions to no more than 15% of the portfolio, to manage risk.

Levine is a student of both fundamental and technical analysis and classifies himself as an old-fashioned stock picker.

His advice to investors after the financial crisis is to focus on looking ahead rather than in the rearview mirror.

"As investors start breaking even 10 years later, they're afraid the same thing could happen to them again," Levine said.

He did note that he's having a tougher time finding bargains in the market. "I have no problem with letting cash pile up a bit if I can't find anything to buy," Levine said. Indeed, Warren Buffett, one of his investing icons, has allowed cash reserves to reportedly grow to $40 billion at Berkshire Hathaway.

Like Buffett, Levine focuses on long-term investments and companies with wide economic moats. He starts with a "top-down" approach focused on which sectors are positioned to perform best in the current economic environment. After that, he conducts “bottom-up” research in attempt to identify companies that offer long-term growth at a reasonable price. He may also use charts to help him time buy and sells, which is where the technical research comes in.

Levine counts Michael Price, Chris Davis, Peter Lynch and Buffett as his favorite investors.

Disclaimer: All investments involve risk and various investment strategies will not always be profitable. Past performance does not guarantee future results.
David Levine

David Levine

I am a value-oriented investor and a former financial adviser for Prudential Securities. I left the industry in 2000 and

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.74 0.00%
FB $117.58 0.00%
GOOG $693.01 0.00%
TSLA $240.76 0.00%
YHOO $36.60 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs