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Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services.
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The list of safe and underappreciated stocks is very deep. In this video clip from “Ask Us Anything” on Motley Fool Live, recorded on March 25, Fool.com contributor Matt Frankel reveals two of his favorite stocks that may not get a lot of attention but are appealing investments.
Matt Frankel: I could name 50 different real estate companies that no one’s ever heard of that are probably really underappreciated in terms of safety stocks. Empire State Realty Trust ( ESRT -0.11% ) is my single largest investment because like you said, it owns iconic assets like the Empire State Building.
I think one that’s also underappreciated for the sake of not naming another real estate company is General Motors ( GM 1.63% ). That’s one that I consider relatively safe, generating tons of free cash flow, great management, much better financial position. I think a lot of people underappreciate it because of the bankruptcy that it went through a decade ago.
It’s a different company today, just a totally different business. Not that it’s a totally safe stock, like we said, there is no such thing. There’s a lot that can go wrong and it’s somewhat cyclical, things like that. But I think that’s one that the market has a perception that it’s a dangerous business. I don’t think that’s really the case anymore.
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