Bloomberg Surveillance Single Best Idea with Tom Keene: Chuck Clough & John Stoltzfus
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Nov 11, 2025 Tom delves into the intriguing clash between value and growth investing with experts Chuck Clough and John Stoltzfus. They discuss the pivotal role of free cash flow in mature industries and whether value investing shines solely in bear markets. Chuck also highlights AI capital expenditure trends, comparing today’s landscape with the dot-com bubble. Meanwhile, Stoltzfus shares his bullish outlook on the S&P 500, fueled by strong earnings and sector growth. This conversation offers insightful perspectives on the current market dynamics.
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Value Wins Through Free Cash Flow
- Chuck Clough argues value stocks succeed when companies generate strong free cash flow and compress capitalization.
- Mature industries that stop heavy reinvestment can produce cash that drives value outperformance.
Hyperscalers Produce Real Cash
- Clough contrasts today's hyperscalers with dot-com era firms, noting hyperscalers produce substantial cash flow.
- He cites Apple and Microsoft as early exceptions that did generate cash back then.
Stay Invested Around Broad Earnings Growth
- John Stoltzfus highlights rising earnings and revenue growth as reasons to stay invested and reaffirm optimism.
- He points to broad sector gains, including tech and financials, as support for market exposure.