plus right here on fox business, start smart every weekend 6-9 a.m. eastern for "mornings with maria" on fox business. us. you'll start your day with ♪ ♪ >> barron's round table, sponsored by: this week or waze ceo weighs in on how carpooling just might save of the world. the outlook for embattled boeing ahead of next week's earns, and bill nye again with surprising stock picks. barron's round table starts now. ♪ ♪ >> i'm jack otter, welcome to barron's round table where the sharpest minds on wall street prepare you for the week ahead. we begin with what we think are the three most important thing we think investors should be

thinking about right now. netflix faces threats from rivals like disney and hulu. health care stocks have been left for dead, but solid earnings from unitedhealth and cooling concerns about medicare for all may revive them. and with the impending return of the embattled 737 max, what to expect for boeing ahead of next week's earnings. on the barron's round table tonight my colleagues, ben levinson and jack howe. jack, you've written an interesting cover story about it, you picked some winners and losers -- >> i was having a conversation on this subject this morning with my wife because this thing comes in the mail that says sign up for disney plus for a discount. should we to that? she said, yeah, the kids like -- i said does that mean we should cancel our cable bundle? i'm not sure. that's a conversation families all across america will be having over the next six months but a you've got new services

not only from disney,cbs and viacom, something from nbc called peacock, warner media. so it gets very complicated quickly. i describe it as a total cluster flicks. they don't let me print that word in barron's, but i think i can say it on television. >> the streaming services displacing the old media, but you actually say comcast might be a good investment. >> it's surprising. we talk about cord cutting, you think cable must be really in trouble. look at the share prices. this year all of cable is up big because investors are coming around to the view that you need broadband. if you cancel that cable tv service, you might very well, you're still going to need that cable broadband, and that has better profit margins than television. so so they to just fine. comcast is in an interesting position because the landscape will be so complicated, they've got a shot at becoming one of the companies that rebundles for streaming services down the road.

>> ben, health care has been very sickly, and you're bullish now. >> i am. this is a sector that's been dumped out, and it's so cheap right now, historically cheap, and yet it has everything that investors are looking for, steady growth, it's very safe. you have these overhangs of the opioid epidemic and the lawsuits, and you've had the whole thing with medicare for all. those are going to pass. there's going to be a settlement with opioids, and the democratic debate showed there's no agreement on medicare for all. there's going to be a role for unitedhealth going forward. that's a great company. companies like medtronic which are stable growers, it's a great place to go buy stocks right now. >> and i think what people are doing is they're letting their political beliefs getting in the way of their investing acumen. if you think about all the things that would have to happen for medicare for all, they'd have to win, democrats would have to win the senate, democrats would have to maintain

unity. all of those things happening, not very likely. >> not very likely. and these stocks, they're just so cheap. this is a great time to buy even if they don't start going up right this moment. >> demography is in the favor of health care stocks. lauren, let's go to boeing. on friday that stock is down 7% on top of earlier losses. is this a falling knife we should catch? >> jack, not only should you not catch it, it's a whole silverware drawer -- [laughter] with those heavy serving pieces. i think what's happened to boeing has made it very difficult to handicap where the stock is going to go. the latest news, on top of the two crashes of the 737 max, is that it looks like the company may have withheld negative information about the plane from regulators. any way you cut it, this is not good news. >> let's say they get that plane back in the air, right? these days people can see every last detail, including the type of plane. is there a risk that that plane

becomes a brand name with people saying i don'tt to fly that model of plane? >> that's going to be the safest plane th's out there when it comes back. >> do you think they change the name? >> i think it's possible. the two things to watch for boeing are any sign of progress that the plane is going to be flying again. and then, as jack indicates, whether customers are actually comfortable booking themselves, their kids, the family vacation, anything on the boeing 737 something. >> let's be a little bit fairer to boeing. in health care we talked about the long-term demographics being in favor of health care stocks. with flying there's airbus and boeing, that's about it. certainly once again, as the middle class around the world grows, people want to fly to see each other, so do you think long term is there a time to get into boeing and five years from now we will have forgotten about the problems? >> there's definitely going to be a time to get in, and you're going to know it when they start

talking about getting the plane back in service. long term, as you say, there are two players, and boeing's stock will be higher. >> certainly the new airbus planes are beautiful, i've got to say. one other thing to think about when it comes to this is will the foreign versions of the faa approve this plane. i mean, it strikes me that even if the faa says that, okay, the plane's ready to fly, what if the french say, well, no. in fact, we don't want these 737 max -- >> that's a good point. and does it complicate matters that, let's be honest, there are otherren countries out there that want compete. right now we're only talking about europe. coulddown the road we might be talking about china. the. >> coming up, should you invest on your political outlook? with we weigh in on that and more. but first, i spoke to waze ceo noam bardin about how the

navigation app makes money. >> the car drives itself, but you're sitting alone in the car? we need to get multiple people ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ i am totally blind. and non-24 can make me show up too early... or too late. or make me feel like i'm not really "there." talk to your doctor, and call 844-234-2424.

♪ ♪ everything your trip needs, for everyone you love. expedia. for everyone you love. i wanted more that's why i've got the power of 1 2 3 medicines with trelegy. the only fda-approved 3-in-1 copd treatment. ♪ trelegy. the power of 1-2-3. ♪ trelegy 1-2-3 trelegy. with trelegy and the power of 1 2 3, i'm breathing better. trelegy works 3 ways to open airways, keep them open and reduce inflammation for 24 hours of better breathing. trelegy won't replace a rescue inhaler for sudden breathing problems. trelegy is not for asthma. tell your doctor if you have a heart condition or high blood pressure before taking it. do not take trelegy more than prescribed. trelegy may increase your risk of thrush, pneumonia, and osteoporosis. call your doctor if worsened breathing, chest pain,

mouth or tongue swelling, problems urinating, vision changes, or eye pain occur. think your copd medicine is doing enough? maybe you ould think again. ask your doctor about once-daily trelegy and the power of 1 2 3. ♪ trelegy 1-2-3 save at trelegy.com ♪ ♪ >> one analyst calls it a buried treasure inside google parent alphabet. it's waze, the navigation app that helps you avoid traffic and speed traps. ceo noam bardin says it's also reducing traffic congestion by connecting commuters for carpools. can they really help save the world? noam bardin, thanks so much for joining us. >> thank you for having me. >> at barron's, you seem to have ways more than google maps which is much more widely adopted, i think's 67% of the market, you've got about 12%, but the

pros seem to use you. why is that? >> we only do driving. that's the only experience. if you are a professional driver, commuter, etc., we give you a lot of value you wouldn't necessarily get from wider apps. the map apps have to do lots of different things, public transit, search, it, and we specialize in one thing. >> do you make fun of the google maps people? >> no. we work very well together. [laughter] >> so 130 million active users. how do you monetize that? >> via ads, we have location-based ads, and we specialize in being able to drive foot traffic into your store. our users are on the go, they're driving, is so our platform helps them find specific locations, whether it's restaurants, businesses, etc. and that's kind of a next step in advertising, digital advertising is very well established, but now we're talking about the real world. and that that's kind of where we're centered. >> so if i've been driving for three hours, i might be hungry, and you're going to serve that to me on the map? >> exactly.

and you probably don't know where you are at that time and actually need to find the gas station. we're going to find you the cheapest gas, those types of things. >> obviously, we've had privacy issues with a lot of big tech companies. how do you draw that line between giving me what i need but not dig too deeply into my personal life where i am? >> we're an app. we're not an operating system. so you can turn us off whenever you want. but if you're using us, you're going to share the data with us, and we're going to use that to help the person driving behind you. it helps each other ear. it helps each other here. >> and nationally you ruled out your carpool app about a year ago what's the thinking behind that. >> when you look at your daily commute, look around you, 75% of americans drive alone in their car. you've got four empty seats and, frankly, traffic is getting worse. we all feel it. we see it mathematically. it is getting worse. and so if we can get more people to leave their car at home, get into a car with their neighbor and drive to work with them, we

can actually remove cars from the road and lower congestion, and this is the product that we have. we'll deal with the friction, we'll find someone that lives next to you, works next to you, make sure the rider pays you for your fuel. we'll handle that in the background. all you have to do is opt into the service and make a small change in your behavior. you'll save time, you'll save money, and you'll actually help remove the congestion which is one of the top sources of co2 emissions. >> so you've handled the technological aspect, but you said it's actually the cultural part that was the most difficult. >> right. this is the biggest challenge, getting people to try it for the first time. what we've seen across everything is once they try it, people love it and keep doing it. so getting people to do it for the first time is a challenge because we've grown up in america thinking our car is our identity, right? being told don't get into a stranger's car, things like that. and this is really the challenge we have, and we give you all the controls. you can decide i only want to ride with people of my gender,

with people from my work. you see who the people are on your social network and decide, you control who you ride with. these small communities get created of four, five, six people who live next to each other and begin sharing cars every day. >> so deep into the future at some point autonomous vehicles looks like that's how we'll all be transported, but there's a bunch of technological as well as cultural issues there. what do you think the benefits are of a world where we don't have a car in a garage, it just shows up when we need it? >> this is a world we're working towards or maybe, you know, 20, 30, 40 years from that, but whenever you want, you can get anything moved from point a to point b for practically nothing, right? and in that world, a lot of things change. how we produce our food. why have a garage in your house, right in why have parts? all these things can begin changing once we stop connecting cars with our identity and begin looking at them as a mode of transportation. we see this with the younger generation, they don't understand why they need to spend all this money on a car when they have other

alternatives. carpooling is really about that, other alternatives. >> gotcha. might put waze out of business, but it'll be a better world. >> yes. and if we -- but at the same time, our carpooling product is going to help get more people into the car. the car drives itself but you're sitting alone, we haven't solved traffic. we need to get multiple people in the car, and this is what waze is specializing in for our next step. >> thank you so much. >> thank you for having me. >> the panel comes back to the round table, what you can do right now to improve your portfolio. but first, legendary value investor bill nygren gets a seat at the table. ♪ do you recall, not long ago ♪ we would walk on the sidewalk ♪ ♪ all around the wind blows ♪ we would only hold on to let go ♪ ♪ blow a kiss into the sun

♪ we need someone to lean on ♪ blow a kiss into the sun ♪ we needed somebody to lean on ♪ ♪ ♪ ♪ all we need is someone to lean on ♪ that could allow hackers devices into your home.ys and like all doors, they're safer when locked. that's why you need xfinity xfi. with the xfi gateway, devices connected to your homes wifi are protected. which helps keep people outside from accessing your passwords,

credit cards and cameras. and people inside from accidentally visiting sites that aren't secure. and if someone trys we'll let you know. xfi advanced security. if it's connected, it's protected. call, click, or visit a store today.

♪ ♪ >> over the past 20 years, investor bill nygren has crushed the index by buying out of favor stocks, but recently his fund

has been out of favor. we invited bill in to find out what he thinks the market is getting wrong and where he's finding value now. so, bill, in order to beat the market, you don't just want to have an index fund, you need to figure out what the market is missing, what you know. how do you think about that as a value investor? >> i think the biggest advantage value investors have is a long-time horizon. most investors are worried short-term news flow than they are pe reevaluations, and since a stock price is its earnings, times its pe multiple, you kind of focus on one or the other. and we think by enduring potentially negative short-term news, we get a big tailwind on a pe revaluation. >> bill, what is the market focusing on right now that it really shouldn't be? >> i think there's an excessive focus on political risk right now in the stock market. i think we're all lucky that economic forces tend to be stronger than political forces,

and it allows the stock market to go up over a long period of time despite politics in both parties that might not be best for the country's businesses. >> you've had a great long-term track record, but the last couple years have been tough. do you ever worry about the kind of secular change that might have disrupted some of the companies in your portfolio? >> well, we do worry about that, but i think our portfolio has a lot of disrupters in it. we own alphabet which has youtube, one of the fastest streaming viewership growth rates. we have netflix, one of the fastest streaming growers. so i don't think our portfolio is full of companies that are likely to be disrupted. >> let me can ask you about streaming, because that's the subject of our cover story in barron's this week. we wrote positive hi about comcast, which you like. we wrote cautiously about netflix, which you also like. and what we wrote is basically the company is burning cash, and they've done very well with

subscribers, they'll continue to do well because it's a good deal for consumers, but with all these new services coming out, it's getting more competitive. what are we not seeing and getting wrong? >> when we look at netflix, we see a similarity to the cable industry 30 year ago where they were losing a lot of money, had a lot of debt on the balance sheet, negative book value. subscribers kept trading at a price of something like $1,000 or higher. when at&t bought time warner, we think the implied valuation of hbo was at least $1,000 a subscriber. if you look at netflix, it has a market cap of somewhere around 150 billion, they're adding 25 million subscribers a year. it's only six times the value that's being added right now. >> there's a lot of talk about breaking up some of these big companies. not netflix, but you own google. what do you think that would mean for investors? on the one hand, they don't have that power of a conglomerate, but some people think the sum of

the parts might be greater than the whole. >> right. we absolutely think the sum of the parts in a company like alphabet is more than what the stock is being priced at today. you look at the other segment that loses money that includes waymo, even youtube. they haven't really fully monetized that yet, and so it's not earning much money. but the hours being watched, if you valued it like a cable network, several hundred dollars a share. >> wow. >> the cash, a couple hundred dollars a share. when we look at it piece by piece and sub tract out those other businesses, we think we're paying well under market multiple for the google search business which has great tailwinds. >> so it'd be a good idea to break up the company? >> no. i think there are real advantages to having the pieces together. it makes alphabet a cool place to if, you know, they're not just doing search, but they're also working on waymo, makes it

easier to attract high quality with engineers. but if they did break it up, we also known facebook, same thing there. we look piece by piece x we're quite comfortable with a broken-up facebook or alphabet would sell at a higher price than it does today. >> certainly noam bardin doesn't have to get on quarterly earnings calls at google, so that makes a lot of sense. what else are you excited about in your portfolio that maybe the rest of the world isn't too excited? financial's a very heavy weighting. >> right. i think investors are way overweighting the memory of the great recession ten years ago. the typical recession doesn't affect the banks anything like the last recession did. and because of those fears, a high quality retail bank like bank of america's held to nine times earnings. it might not grow its net income much, but it's repurchasing more than 0% of its shares a year, and -- 10% --

>> that's, if it's not organic growth, because rates are coming down, that's enough to get you excited? >> yeah. i think one of the opportunities is investors tend to pay for more organic growth than growth that comes from capital return. we treat them equally. >> bill nygren, thank you so much. appreciate it. up next, our parting shots. the round table gives investment advice for the coming week. stay right there. ♪ our 18-year-old was in an accident. when i called usaa, it was that voice asking me, "is your daughter ok?" that's where i felt relief. we're the rivera family and we plan to be with usaa for life. see how much you can save with usaa insurance. i am royalty of racing, i am alfa romeo.

i get it all the time. "have you lost weight?" of course i have- ever since i started renting from national. because national lets me lose the wait at the counter... ...and choose any car in the aisle. and i don't wait when i return, thanks to drop & go. at national, i can lose the wait...and keep it off. looking good, patrick. i know. (vo) go national. go like a pro. 2,000 fence posts. 900 acres. 48 bales. all before lunch, which we caught last saturday. we earn our scars. we wear our work ethic. we work until the work's done. and when it is, a few hours of shuteye to rest up for tomorrow, the day we'll finally get something done. ( ♪ )

today, johjohn told his for his firstitch fix stylist evanah. that tonight was a big deal. so his stylist did the hard work for him. john! hi. browsing hundreds of styles and sizes to find the perfect fitting shirt and blazer. so that tonight john could feel totally himself. at stitch fix we don't just see your size or your style. we see you. let us find your perfect fit at stitchfix.com

♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ >> jack, in addition to writing the cover story this week, you also authored the street wise column and, amazingly, you managed to make brexit funny. >> thank you. if you haven't had the six month

sabbatical that you need to figure out what the heck it means, you've made it this far withouting with called -- without being called out on it, don't get found out now in conversation. i've written for people a guide to pretending to understand brexit. >> and i even learned something about the name, it's or something of a port man doe. let's get the investment advice. >> well, ubs said if you get anything but a worst case scenario, you can do well in some u.k. shares like a home builder named taylor wimpe if lloyd's banking group. >> what if viewers can't actually remember those names in. >> i've got advice for that. if you get backed into a corner, you don't remember the stocks, it's pretty easy to just make up fictitious names of british companies. you take some sill bills, put them in a way -- sill bills, i

bought shares of bottomsworth and wiggles -- >> i'm going to call my broker. >> one of ben's core holdings. >> let's get some real advice from ben. what have you got for us? an idea viewers can take away from the show? >> i wish i had something like nike, these things are complicated, but right now they're so hated that you can get them for huge discounts to what they're worth. >> close-in funds, hold a basket of securities but then they sell for less than they're worth. >> that's right. they're they're like etfs before they were etfs. >> you'll sell for more than you bought -- >> that's exactly right. >> lauren, what have you got for us? >> another word for goldman sachs, the company had disappointing third quarter earnings, stock is trading for 8.5 times earnings, less than book value. it's trailed its fears for the past five years, and i think an opportunity could be here.

>> lauren, ben, jack, thank you. greatde. to read more, check out this week's edition at barron's.com. that's all for us tonight. see you next week on the barron's round table. ♪ there's no requirement that we have vote and so we will not be having a vote and i'm very pleased with the thoughtfulness of our caucus in terms of being supportive of the path that we are on in terms of fairness, in terms of seeking the truth, in terms of upholding the constitution of the united states. paul: welcome theal editorial report." i'm paul gigot. that was house speaker nancy pelosi confirming this week she has no plans to hold a chamber-wide vote to authorize the a impeachment inquiry into president trump despite calls from the republicans and white house to do so. democrats continuing to interview witnesses behind