bob olstein, i want to start with the political climate. does any of that come into your philosophy for the investing. >> what's going to become law and how does it effect the free cash flow of companies or industries we are looking at. but we can't twhroins all this stuff from politically active people. gary: the fact that you have the political extremes going on in this cycle? >> the market, 80% of the market. hedge funds that aren't there with the spreads anymore. when the trading has become ridiculous. the analysts are look at if somebody has beaten the estimates or not. we have record volatility we take advantage of it. gary: so you are working more on the fundamentals and less on the news and currents information that's out there. >> there is a difference between an investment decision and market decision. most analysts, there are real companies behind those stocks. and you have to value the businesses. the values of those businesses do not change as rapid as the stock prices do. gary: we'll get into the specific companies later. by w

are back with bob olstein of capital management. gives some ideas what you find tractive? >> what we find attractive is usually what other people find in trouble. getting the right price is the key for long-term investing. bed, bath and beyond be everybody hates it, we think this company is real, it's relevant. the rar nins will drop to 10%. that's enough to produce $6 a share. we like the problems because we get the right price. we think equity capital can move into the stock. i remember talking about petsmart. this company is the type of stock under valued, 10% free cash flow. gary: when stocks are trading count average retail investor gets scared and starts selling them. >> they sell them to us. you could have a stock -- >> a value track is where the problem is not team prairie like we think in -- is not temporary like in bed bat. and basically you want to stay away from it. >> it looks attractive on a valuation basis. but that stock is jammed in. >> you can have a stock cheap at 25 times earnings and a stock expensive at 10 time

'll break it down why bob olstein,nd melelis francis next. you shouldn't have to go far to get the help you're looking for. that's why at xfinity we're opening up more stores closer to you. where you can use all of our latest products and technology. and find out how to get the most out of your service. so when you get home, all you have to do is enjoy it. we're doing everything we can to give you the best experience possible. because we should fit into your life. not the other way around. great time for a shiny floor wax, no? not if you just put the finishing touches on your latest masterpiece. timing's important. comcast business knows that. that's why you can schedule an installation at a time that works for you. even late at night, or on the weekend, if that's what you need. because you have enough to worry about. i did not see that coming. don't deal with disruptions. get better internet installed on your schedule. comcast business. built for business. >> they have a gnt cdiditt bule that has rehed its atrophy level and 's going to happ

we'll break it down why y bob olstein, andnd melissa franc next. the heirloom tomato.o. intensely-flavored. befully-misshapen. when you cook k with incredibe ingredients...you make incrible meals. get your firstst two meals freet blueapapron.com/cook. looktry aligign obiotic.our didigestive system? fofor non-stop, sweet treat goodness, hold on to your tiara nd of day. live 2 24/7. with 24/7 digigese support. try align, the #1 ge recomommend probiotic. you premium like clockwork. month after month. year after year. then one night, you hydroplane into a ditch. yeah... surprise... your insurance company tells you to pay up again. why pay for insurance if you have to pay even more for using it? if you have liberty mutual deductible fund™, you could pay no deductible at all. sign up to immediately lower your deductible by $100. and keep lowering it $100 annually, until it's gone. then continue to earn that $100 every year. there's no limit to how much you can earn and this savings applies to every vehicle on your policy. call to learn more. switch to liberty mutual and you co

. >>> on wall street, value investor bob olstein has made brilliant calls himself, now make a new call. the case for active investing. listen. >> i believe it's people's jobs to find active managers. the governor of pennsylvania says there's no risk in the indexes. well, the indexes were the ones who bought enron, they bought worldcom. robot investing, that's the du jour of the day. liz: bob is going to be on "wall street week" friday. but in the meantime, a guy who disagrees, tom lydon, ceo of etf trading. you say better to go with etfs, baskets of stocks that win for themselves. >> liz, if i own a mutual fund company i'd put the hate on etfs as well. scared to death. 200 billion dollars came out of mutual funds last year. 125 billion went into etfs. people want diversification, transparency, they want low cost. and that's what etfs are giving investors, they don't want to pay the high fees. lack of transparency and the underperformance. liz: buffett is on your side, he'll always win if you go into the s&p inde get to your favorites right now. you like guggenheim. power shares, footsi