12 Best Stocks to Buy According to Billionaire Mario Gabelli

Core Insights - Mario Gabelli, a prominent value investor and founder of GAMCO Investors, emphasizes identifying a company's private market value (PMV) and the catalysts that can unlock it [1] GAMCO Investors Overview - As of February 2026, GAMCO Investors' 13F portfolio is valued at nearly $10.5 billion across over 1,000 securities, with the top 10 holdings making up close to 16% of the portfolio [2] - The total assets under management (AUM) reached $34.9 billion as of December 2025, reflecting a 10% increase from Q4 2024 [2] Investment Strategy and Market Insights - Gabelli is recognized for his deep fundamental research and keen observation of industry trends, capital markets, and corporate deal activities [3] - He advises clients to reassess media holdings due to an active M&A environment, describing the current conditions as "a terrific time" for mergers and acquisitions [4] National Fuel Gas Company (NYSE:NFG) - NFG is highlighted as a strong investment idea, with GAMCO holding 1.45 million shares valued at $115.7 million, representing 1.1% of the portfolio [9] - The stock has shown a solid performance with a 16% return in 2026 and a 32% appreciation in 2025 [10] - Gabelli cites two main reasons for favoring NFG: the strategic value of its gas reserves in the Appalachian Basin and the belief that its private market value is 50% higher than the current price [11] - NFG's pending $2.6 billion acquisition of CenterPoint Energy's Ohio gas utility is expected to double its regulated utility rate base and expand its customer base [13] - The company offers a 2.14% annual dividend yield, appealing to long-term investors [14] Watts Water Technologies Inc. (NYSE:WTS) - WTS is the 11th-largest holding for GAMCO, with a position value of $117.5 million, although the fund has reduced its stake by approximately 3.5% [16] - The stock has appreciated 160% over the last five years, with a 36% increase in 2025 and a 12% rise so far in 2026 [17] - Recent analyst commentary has been positive, with Goldman Sachs raising the price target from $267 to $323 and Baird increasing it from $312 to $361, both maintaining a Neutral rating [19][20]