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21 hours ago
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6 classic investing books every stock picker should read
One of the best ways to take your investing skills to the next level quickly is to learn from the masters. The insights and wisdom gleaned from the experts — all for the cost of a book — can help you fine-tune your stock-picking skills and venture beyond your usual hunting grounds. The best investing books are those that have stood the test of time. That's why the list below is dominated by some classic deep dives from the investing world's titans, rounded out with a few breezier (but still meaty) reads. These recommendations are primarily aimed at those who already have a good handle on the basics. If you need a refresher, check out our list of best investing books for beginners. Audio more your style?: Give some of the best investing podcasts a listen 'The Intelligent Investor: The Definitive Book on Value Investing' by Benjamin Graham Amazon rating: 4.7 starsGoodreads rating: 4.24 starsNotable quote: 'To achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks.' Benjamin Graham is considered the father of value investing, an investing style where practitioners look to buy out-of-favor stocks trading at a discount compared to their current valuation. Does the strategy sound familiar? It should: Graham was a key mentor for legendary investor Warren Buffett. 'The Intelligent Investor' is regularly featured on lists of the best investing books for good reason: In it, Graham shows you how to think sensibly about investing and avoid the mistakes that hurt your returns. It is considered a shorter, more readable version of Graham's other famous book co-authored with David Dodd, 'Security Analysis.' Although 'The Intelligent Investor' was first published in 1949, more recent editions with editor Jason Zweig include modern commentary that provides perspective on more contemporary events. 'You Can Be a Stock Market Genius: Uncover the Secret Hiding Places of Stock Market Profits' by Joel Greenblatt Amazon rating: 4.5 starsGoodreads rating: 4.22 starsNotable quote: 'By focusing on the motives of management and other insiders, you can turn this advantage for insiders into an advantage for yourself.' 'You Can Be a Stock Market Genius' by Joel Greenblatt is a more modern classic, and it showcases how to find stocks that are hidden by superficial events, such as spin-offs. First published in 1997, it continues to be a favorite of current investors due to its easy-to-read style, practical examples and humor. Yes, humor! In his inimitable prose, Greenblatt gives you all the details on how to uncover hidden gems. For example, using the book's approach, readers would have been able to track PayPal, before it spun off from parent eBay in 2015, and then proceeded to return 400 percent to investors over the next five years. Put it into practice:: How to research stocks like the pros 'Common Stocks and Uncommon Profits and Other Writings' by Philip A. Fisher Amazon rating: 4.6 starsGoodreads rating: 4.14 starsNotable quote: 'Even in those earlier times, finding the really outstanding companies and staying with them through all the fluctuations of a gyrating market proved far more profitable to far more people than did the more colorful practice of trying to buy them cheap and sell them dear.' This classic investing book is another focused on practical examples that show readers how to find attractive stocks with the potential to deliver seriously huge returns. Author Philip Fisher is a giant in the investing world, and he reveals many of his secrets in this book, including the qualities to look for in an attractive business. First published in 1958, 'Common Stocks and Uncommon Profits' still offers so much wisdom that contemporary readers continue to cite Fisher's work today. One of Fisher's classic techniques is called the scuttlebutt method, in which he advises investors to see what a company's rivals say about it, in order to assess the company's competitive position. Also worth noting, Warren Buffett says that his own investing approach is a combination of Benjamin Graham's and Fisher's — it's hard to receive higher praise than that! 'Margin of Safety: Risk-Averse Value Investing Strategies for the Thoughtful Investor' by Seth Klarman Amazon rating: 4.4 starsGoodreads rating: 4.33 starsNotable quote: 'Successful investors tend to be unemotional, allowing the greed and fear of others to play into their hands.' 'Margin of Safety' is somewhat of a holy grail in the world of investing books. Author Seth Klarman, now a billionaire, published the book in 1991 and it has never been reprinted. The book is so scarce that sellers regularly ask more than $1,000 a copy. Despite the eye-watering price tag, we included this oft-cited tome here because you can find excerpts from its pages online, often on academic websites. In it you'll find a blueprint for Klarman's conservative, value-based approach to investing, using the principle of margin of safety. That is, he advises you to buy an asset at such a sufficiently low price relative to its probable worth that it would be hard to lose money. 'Investing in REITs' by Ralph Block Amazon rating: 4.4 starsGoodreads rating: 3.67 starsNotable quote: 'REITs give you the steady and predictable cash flow that comes from owning and leasing real estate, but with the benefit of a common stock's liquidity.' If you're interested in investing in real estate in the public stock market, Ralph Block's 'Investing in REITs' (real estate investment trusts) is considered by some as the definitive reference guide. REITs are among the most popular kinds of stocks because of their typically large dividends and attractive long-term record of returns. This book is quite popular among both seasoned REIT investors and those learning the field, and it's already on its fourth edition, after first being published in 1998. Block distills his decades of investing in REITs into the key qualities you need to look for in the sector. 'The Little Book of Common Sense Investing: The Only Way to Guarantee Your Fair Share of Stock Market Returns' by John Bogle Amazon rating: 4.7 starsGoodreads rating: 4.15 starsNotable quote: 'Index funds make up for their lack of short-term excitement by their truly exciting long-term productivity. The TIF (traditional index fund) is designed to be held for a lifetime.' You don't have to allocate a huge chunk of your portfolio to individual stocks to earn impressive returns. In 'The Little Book of Common Sense Investing,' mutual fund trailblazer and Vanguard founder John Bogle makes the case for why index funds are the simplest, most effective way to build wealth. First published in 2007, Bogle uses real-world examples to discuss returns and investor sentiment over time and builds the argument for investing in index funds, which offer instant diversification with low costs. Bogle updated the book in 2017 to include new chapters on retirement investing and asset allocation. Get started: Index funds are just one of the best long-term investments Reading about investing is one of the highest-return activities you can do. Not only can you learn about how to approach investing smartly from some of the world's best investors, you can avoid some of the pitfalls that can sink even the most seasoned investors. As Warren Buffett famously said, 'Rule No. 1 is never lose money. Rule No. 2 is never forget Rule No. 1.' Learn more: Warren Buffett's other top investing advice Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
10-05-2025
- Business
- Yahoo
Ryman Hospitality Properties, Inc. (RHP): Among Billionaire Mario Gabelli's Small-Cap Stock Picks with Huge Upside Potential
We recently published a list of Billionaire Mario Gabelli's 10 Small-Cap Stock Picks with Huge Upside Potential. In this article, we are going to take a look at where Ryman Hospitality Properties, Inc. (NYSE:RHP) stands against other small-cap stock picks with huge upside potential. Mario J. Gabelli founded Gabelli Asset Management Company in 1977. The firm is now called GAMCO Investors and is an American firm headquartered in New York. It specializes in providing investment advice and brokerage services to mutual funds, institutional clients, and select investors. It is majority-owned by Mario Gabelli, who is the Chairman and CEO of it. GAMCO Investors includes two businesses: GAMCO Asset Management, with institutional and separate accounts; and Gabelli Funds. The last reported 13F filing for Q4 2024 included $9.55 billion in managed 13F securities and a top 10 holdings concentration of 16.81%. Gabelli stayed true to the principles of value investing and used a solid base created by Warren Buffett and Ben Graham, while adding some of his elements to the mix. He believes that value investing isn't focused on short-term market movements. He looks for the ignored and unloved companies that nobody covers for whatever reason, with a good business, solid management, and a good price. As January was ending, Gabelli joined 'Squawk Box' on CNBC to discuss a range of topics. He explained how the stock market's performance is tied to company earnings, revenue growth, gross margins, expenses, and taxes, but most importantly to the market multiple, which is influenced by interest rates. These are shaped by debt, deficits, and overall confidence. Gabelli also mentioned that strategic corporate M&A was returning after a freeze caused by regulatory uncertainty and some failed deals. Activist investors are also seeking greater visibility and pushing for changes at companies. He argued against reducing the corporate tax rate below 21% but advocated for a minimum tax on a cash basis. He called for the restoration of 100% bonus depreciation, which would allow businesses, such as farmers, to fully write off new equipment purchases immediately, thereby encouraging investment in technologically advanced machinery. Gabelli mentioned that similar incentives should apply to capital expenditures in sectors like cable and referenced comments from Hans Vestberg. He noted that while corporations currently receive tax deductions for capital expenditures, these are spread over longer periods, and accelerating them would provide more immediate benefits. Gabelli graduated summa cum laude in 1965 from Fordham University's College of Business Administration in 1965 and holds an MBA from Columbia University Graduate School of Business. He has received honorary doctorates from Fordham University and Roger Williams University. He also serves on the Boards of Boston College, Roger Williams University, Columbia University Graduate School of Business, the American-Italian Cancer Foundation, and the Foundation for Italian Art & Culture. He is a Trustee of the Winston Churchill Foundation of the US and the EL Wiegand Foundation. Gabelli was honored as Morningstar's Portfolio Manager of the Year in 1997, named Money Manager of the Year by Institutional Investor in 2011, and is a member of Barron's All-Star Century Team. To compile the list of billionaire Mario Gabelli's 10 small-cap stock picks with huge upside potential, we sifted through the Q4 2024 13F filings of GAMCO Investors from Insider Monkey. From these filings, we checked the upside potential from CNN for the top 50 stock picks that were trading between $1 billion and $10 billion and ranked the stocks in ascending order of this upside potential. We have also added GAMCO Investors' stake in each company and the hedge fund sentiment around each stock. Note: All data was sourced on May 8. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). An interior shot of the Grand Ole Opry House, showing the iconic country music brand and its architechtural grandeur. GAMCO Investors' Stake: $100.85 million Number of Hedge Fund Holders: 35 Market Capitalization as of May 8: $5.81 billion Average Upside Potential as of May 8: 18.69% Ryman Hospitality Properties, Inc. (NYSE:RHP) is a leading lodging and hospitality real estate investment trust. It specializes in upscale convention center resorts and entertainment experiences. The company's holdings include 5 of the top 7 largest non-gaming convention center hotels in the US based on total indoor meeting space. In Q1 2025, the company's Hospitality segment achieved record results, with revenue increasing by 11% year-over-year. This was fueled by a 10% increase in RevPAR (Revenue Per Available Room) and a 9% increase in total RevPAR. The average daily rate (ADR) also reached a first-quarter record of $264, which was up ~6% and showed strength in both group and transient customer segments. Notably, group room nights booked for all future years increased by 10% year-over-year, with particularly strong bookings for 2026 and 2027. These are up 13% and 35% respectively. Ryman Hospitality Properties, Inc. (NYSE:RHP) is managing the Hospitality segment by operating model efficiencies in partnership with its operator, Marriott. It's also communicating with meeting planners to navigate near-term uncertainties. Overall, RHP ranks 9th on our list of billionaire Mario Gabelli's small-cap stock picks with huge upside potential. While we acknowledge the potential of RHP as an investment, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than RHP but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
10-05-2025
- Business
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Modine Manufacturing Company (MOD): Among Billionaire Mario Gabelli's Small-Cap Stock Picks with Huge Upside Potential
We recently published a list of Billionaire Mario Gabelli's 10 Small-Cap Stock Picks with Huge Upside Potential. In this article, we are going to take a look at where Modine Manufacturing Company (NYSE:MOD) stands against other small-cap stock picks with huge upside potential. Mario J. Gabelli founded Gabelli Asset Management Company in 1977. The firm is now called GAMCO Investors and is an American firm headquartered in New York. It specializes in providing investment advice and brokerage services to mutual funds, institutional clients, and select investors. It is majority-owned by Mario Gabelli, who is the Chairman and CEO of it. GAMCO Investors includes two businesses: GAMCO Asset Management, with institutional and separate accounts; and Gabelli Funds. The last reported 13F filing for Q4 2024 included $9.55 billion in managed 13F securities and a top 10 holdings concentration of 16.81%. Gabelli stayed true to the principles of value investing and used a solid base created by Warren Buffett and Ben Graham, while adding some of his elements to the mix. He believes that value investing isn't focused on short-term market movements. He looks for the ignored and unloved companies that nobody covers for whatever reason, with a good business, solid management, and a good price. As January was ending, Gabelli joined 'Squawk Box' on CNBC to discuss a range of topics. He explained how the stock market's performance is tied to company earnings, revenue growth, gross margins, expenses, and taxes, but most importantly to the market multiple, which is influenced by interest rates. These are shaped by debt, deficits, and overall confidence. Gabelli also mentioned that strategic corporate M&A was returning after a freeze caused by regulatory uncertainty and some failed deals. Activist investors are also seeking greater visibility and pushing for changes at companies. He argued against reducing the corporate tax rate below 21% but advocated for a minimum tax on a cash basis. He called for the restoration of 100% bonus depreciation, which would allow businesses, such as farmers, to fully write off new equipment purchases immediately, thereby encouraging investment in technologically advanced machinery. Gabelli mentioned that similar incentives should apply to capital expenditures in sectors like cable and referenced comments from Hans Vestberg. He noted that while corporations currently receive tax deductions for capital expenditures, these are spread over longer periods, and accelerating them would provide more immediate benefits. Gabelli graduated summa cum laude in 1965 from Fordham University's College of Business Administration in 1965 and holds an MBA from Columbia University Graduate School of Business. He has received honorary doctorates from Fordham University and Roger Williams University. He also serves on the Boards of Boston College, Roger Williams University, Columbia University Graduate School of Business, the American-Italian Cancer Foundation, and the Foundation for Italian Art & Culture. He is a Trustee of the Winston Churchill Foundation of the US and the EL Wiegand Foundation. Gabelli was honored as Morningstar's Portfolio Manager of the Year in 1997, named Money Manager of the Year by Institutional Investor in 2011, and is a member of Barron's All-Star Century Team. To compile the list of billionaire Mario Gabelli's 10 small-cap stock picks with huge upside potential, we sifted through the Q4 2024 13F filings of GAMCO Investors from Insider Monkey. From these filings, we checked the upside potential from CNN for the top 50 stock picks that were trading between $1 billion and $10 billion and ranked the stocks in ascending order of this upside potential. We have also added GAMCO Investors' stake in each company and the hedge fund sentiment around each stock. Note: All data was sourced on May 8. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). A technician in a factory, assembling a gas-fired unit heater. GAMCO Investors' Stake: $139.62 million Number of Hedge Fund Holders: 43 Market Capitalization as of May 8: $4.95 billion Average Upside Potential as of May 8: 49.62% Modine Manufacturing Company (NYSE:MOD) provides thermal management products and solutions. It operates through Climate Solutions and Performance Technologies segments. It also provides data center products that consist of IT cooling solutions, such as precision air conditioning units for data center applications and computer room air conditioning & handler units. The company recently secured a $180 million order from a leading AI infrastructure developer for its specialized Airedale by Modine data center cooling systems. This system is an AI-enhanced version of Modine's Cooling System Optimizer that offers energy consumption reductions of up to 40%. To fully capitalize on this, Modine is making Cooling AI available as a new system and as a retrofit option for existing Airedale by Modine Cooling System Optimizers. DA Davidson reiterated a Buy rating on the stock on March 31, while lowering its price target to $140 from $155. Modine Manufacturing Company (NYSE:MOD) now projects to grow data center sales by 110% to 120% for the full FY2025. In FQ3 2025, Modine's data center revenues grew by 176% year-over-year. This was fueled by the acquisition of Scott Springfield, which contributed $63 million to this revenue. SouthernSun Small Cap Strategy is positive on the company and stated the following regarding Modine Manufacturing Company (NYSE:MOD) in its Q1 2025 investor letter: 'Modine Manufacturing Company (NYSE:MOD) is an over 100-year-old thermal management company based in Racine, WI. The company started out producing heat exchangers for tractors but quickly expanded into the automotive market and became a major supplier of heat exchangers to leading car manufacturers. As demand for automobiles increased significantly throughout the 20th century, Modine expanded operations globally. However, as the automotive market matured and became more competitive, MOD's growth slowed, and the company went through numerous restructurings to take cost out of the business. The company attempted to diversify into the HVAC industry by buying Airedale in 2005 and Luvata in 2016, but management lacked a clear strategic vision, and the legacy automotive business continued to attract most of the time and resources. Overall, MOD ranks 2nd on our list of billionaire Mario Gabelli's small-cap stock picks with huge upside potential. While we acknowledge the potential of MOD as an investment, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than MOD but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
10-05-2025
- Business
- Yahoo
GATX Corporation (GATX): Among Billionaire Mario Gabelli's Small-Cap Stock Picks with Huge Upside Potential
We recently published a list of Billionaire Mario Gabelli's 10 Small-Cap Stock Picks with Huge Upside Potential. In this article, we are going to take a look at where GATX Corporation (NYSE:GATX) stands against other small-cap stock picks with huge upside potential. Mario J. Gabelli founded Gabelli Asset Management Company in 1977. The firm is now called GAMCO Investors and is an American firm headquartered in New York. It specializes in providing investment advice and brokerage services to mutual funds, institutional clients, and select investors. It is majority-owned by Mario Gabelli, who is the Chairman and CEO of it. GAMCO Investors includes two businesses: GAMCO Asset Management, with institutional and separate accounts; and Gabelli Funds. The last reported 13F filing for Q4 2024 included $9.55 billion in managed 13F securities and a top 10 holdings concentration of 16.81%. Gabelli stayed true to the principles of value investing and used a solid base created by Warren Buffett and Ben Graham, while adding some of his elements to the mix. He believes that value investing isn't focused on short-term market movements. He looks for the ignored and unloved companies that nobody covers for whatever reason, with a good business, solid management, and a good price. As January was ending, Gabelli joined 'Squawk Box' on CNBC to discuss a range of topics. He explained how the stock market's performance is tied to company earnings, revenue growth, gross margins, expenses, and taxes, but most importantly to the market multiple, which is influenced by interest rates. These are shaped by debt, deficits, and overall confidence. Gabelli also mentioned that strategic corporate M&A was returning after a freeze caused by regulatory uncertainty and some failed deals. Activist investors are also seeking greater visibility and pushing for changes at companies. He argued against reducing the corporate tax rate below 21% but advocated for a minimum tax on a cash basis. He called for the restoration of 100% bonus depreciation, which would allow businesses, such as farmers, to fully write off new equipment purchases immediately, thereby encouraging investment in technologically advanced machinery. Gabelli mentioned that similar incentives should apply to capital expenditures in sectors like cable and referenced comments from Hans Vestberg. He noted that while corporations currently receive tax deductions for capital expenditures, these are spread over longer periods, and accelerating them would provide more immediate benefits. Gabelli graduated summa cum laude in 1965 from Fordham University's College of Business Administration in 1965 and holds an MBA from Columbia University Graduate School of Business. He has received honorary doctorates from Fordham University and Roger Williams University. He also serves on the Boards of Boston College, Roger Williams University, Columbia University Graduate School of Business, the American-Italian Cancer Foundation, and the Foundation for Italian Art & Culture. He is a Trustee of the Winston Churchill Foundation of the US and the EL Wiegand Foundation. Gabelli was honored as Morningstar's Portfolio Manager of the Year in 1997, named Money Manager of the Year by Institutional Investor in 2011, and is a member of Barron's All-Star Century Team. To compile the list of billionaire Mario Gabelli's 10 small-cap stock picks with huge upside potential, we sifted through the Q4 2024 13F filings of GAMCO Investors from Insider Monkey. From these filings, we checked the upside potential from CNN for the top 50 stock picks that were trading between $1 billion and $10 billion and ranked the stocks in ascending order of this upside potential. We have also added GAMCO Investors' stake in each company and the hedge fund sentiment around each stock. Note: All data was sourced on May 8. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). An engineer examining a high-tech tank and freight car, showcasing the company's innovation in railcars. GAMCO Investors' Stake: $204.74 million Number of Hedge Fund Holders: 14 Market Capitalization as of May 8: $5.25 billion Average Upside Potential as of May 8: 19.70% GATX Corporation (NYSE:GATX) is a railcar leasing company in the US, Canada, Mexico, Europe, and India. It operates through three segments: Rail North America, Rail International, and Engine Leasing. The company leases tank & freight railcars, and locomotives for petroleum, chemical, food/agriculture, and transportation industries. It also offers maintenance services. In Q1 2025, GATX's Rail North America segment maintained a high fleet utilization of 99.2% at the end of the quarter. The renewal success rate was strong at 85.1%, which shows continued customer satisfaction and the essential nature of the company's railcars. GATX is successfully placing new railcars from its 2022 Trinity supply agreement, having placed more than 5,700 railcars with deliveries starting in Q1 2026. In addition to new builds, GATX invested over $227 million in acquiring railcars in the secondary market during the quarter. The company also capitalized on a secondary market by selectively selling cars and generating over $30 million in asset remarketing income. While the direct impact of tariffs on procurement costs is currently limited, GATX Corporation (NYSE:GATX) acknowledges potential indirect impacts from broader economic conditions and commodity flow changes. However, GATX Rail North America, with its diverse fleet, over 800 customers, and ability to move over 600 commodity types, is positioned to navigate these uncertainties. The focus remains on leveraging their existing fleet, strategically investing in new and used railcars, and optimizing their portfolio through selective sales to drive continued revenue and growth in this core segment. Overall, GATX ranks 7th on our list of billionaire Mario Gabelli's small-cap stock picks with huge upside potential. While we acknowledge the potential of GATX as an investment, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than GATX but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
10-05-2025
- Business
- Yahoo
Flowserve Corporation (FLS): Among Billionaire Mario Gabelli's Small-Cap Stock Picks with Huge Upside Potential
We recently published a list of Billionaire Mario Gabelli's 10 Small-Cap Stock Picks with Huge Upside Potential. In this article, we are going to take a look at where Flowserve Corporation (NYSE:FLS) stands against other small-cap stock picks with huge upside potential. Mario J. Gabelli founded Gabelli Asset Management Company in 1977. The firm is now called GAMCO Investors and is an American firm headquartered in New York. It specializes in providing investment advice and brokerage services to mutual funds, institutional clients, and select investors. It is majority-owned by Mario Gabelli, who is the Chairman and CEO of it. GAMCO Investors includes two businesses: GAMCO Asset Management, with institutional and separate accounts; and Gabelli Funds. The last reported 13F filing for Q4 2024 included $9.55 billion in managed 13F securities and a top 10 holdings concentration of 16.81%. Gabelli stayed true to the principles of value investing and used a solid base created by Warren Buffett and Ben Graham, while adding some of his elements to the mix. He believes that value investing isn't focused on short-term market movements. He looks for the ignored and unloved companies that nobody covers for whatever reason, with a good business, solid management, and a good price. As January was ending, Gabelli joined 'Squawk Box' on CNBC to discuss a range of topics. He explained how the stock market's performance is tied to company earnings, revenue growth, gross margins, expenses, and taxes, but most importantly to the market multiple, which is influenced by interest rates. These are shaped by debt, deficits, and overall confidence. Gabelli also mentioned that strategic corporate M&A was returning after a freeze caused by regulatory uncertainty and some failed deals. Activist investors are also seeking greater visibility and pushing for changes at companies. He argued against reducing the corporate tax rate below 21% but advocated for a minimum tax on a cash basis. He called for the restoration of 100% bonus depreciation, which would allow businesses, such as farmers, to fully write off new equipment purchases immediately, thereby encouraging investment in technologically advanced machinery. Gabelli mentioned that similar incentives should apply to capital expenditures in sectors like cable and referenced comments from Hans Vestberg. He noted that while corporations currently receive tax deductions for capital expenditures, these are spread over longer periods, and accelerating them would provide more immediate benefits. Gabelli graduated summa cum laude in 1965 from Fordham University's College of Business Administration in 1965 and holds an MBA from Columbia University Graduate School of Business. He has received honorary doctorates from Fordham University and Roger Williams University. He also serves on the Boards of Boston College, Roger Williams University, Columbia University Graduate School of Business, the American-Italian Cancer Foundation, and the Foundation for Italian Art & Culture. He is a Trustee of the Winston Churchill Foundation of the US and the EL Wiegand Foundation. Gabelli was honored as Morningstar's Portfolio Manager of the Year in 1997, named Money Manager of the Year by Institutional Investor in 2011, and is a member of Barron's All-Star Century Team. To compile the list of billionaire Mario Gabelli's 10 small-cap stock picks with huge upside potential, we sifted through the Q4 2024 13F filings of GAMCO Investors from Insider Monkey. From these filings, we checked the upside potential from CNN for the top 50 stock picks that were trading between $1 billion and $10 billion and ranked the stocks in ascending order of this upside potential. We have also added GAMCO Investors' stake in each company and the hedge fund sentiment around each stock. Note: All data was sourced on May 8. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). A group of industrial workers in coveralls operating a large scale pump system in a factory. GAMCO Investors' Stake: $75.93 million Number of Hedge Fund Holders: 60 Market Capitalization as of May 8: $6.82 billion Average Upside Potential as of May 8: 22.73% Flowserve Corporation (NYSE:FLS) designs, manufactures, distributes, and services industrial flow management equipment. It operates in two segments: Flowserve Pump Division and Flow Control Division. It offers custom-engineered pumps, pre-configured industrial pumps, pump systems, mechanical seals, auxiliary systems, replacement parts, and related aftermarket services. The company's Flow Control Division/FCD had its bookings surge by 21% year-over-year in Q1 2025 due to double-digit increases in both original equipment and aftermarket activity. FCD also benefited from the strength in the nuclear sector, alongside positive contributions from general industries and energy markets. While FCD's sales growth of 2% in the quarter was modest, it exceeded expectations. On March 17, Baird analyst Michael Halloran upgraded Flowserve to Outperform from Neutral with an unchanged price target of $71. Baird believes that the company's earnings power is attractive, as there is a compelling internally fueled margin expansion story. Flowserve Corporation (NYSE:FLS) anticipates continued margin expansion within FCD, partly due to disciplined pricing & cost management, and the benefits of the company's 80-20 complexity reduction program. Artisan Small Cap Fund stated the following regarding Flowserve Corporation (NYSE:FLS) in its Q4 2024 investor letter: 'During the quarter, we initiated new GardenSM positions in VSE, Flowserve Corporation (NYSE:FLS) and Integer Holdings. Flowserve is a leading provider of fluid motion and control products and services. The company designs, manufactures and services a wide range of pumps, valves, seals, automation solutions and related systems for industries that require the management and transfer of fluids. As we highlight in the Stewardship Update section later in this letter, we believe the company is in a good position to benefit from rising natural gas production that is being driven by rising baseload power needs for data centers. And within the oil end market, a loosening of regulatory policies could increase production demands.' Overall, FLS ranks 6th on our list of billionaire Mario Gabelli's small-cap stock picks with huge upside potential. While we acknowledge the potential of FLS as an investment, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than FLS but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. 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