Investors seize opportunities as John Rogers buys into entertainment and cruise stocks

In recent weeks, the stock market has faced significant challenges in the United States, driven primarily by tariff concerns and fears of a potential recession. These factors have caused many investors to take a cautious approach, leading to a sell-off in various sectors. However, John Rogers, chairman, co-CEO, and CIO of Ariel Investments, views the current market conditions as a prime opportunity to invest in undervalued stocks. During an interview on May 2, 2025, in Omaha, Nebraska, ahead of Berkshire Hathaway's annual shareholder meeting, Rogers expressed his enthusiasm about finding bargains in the midst of the downturn. Rogers stated that his firm has been steadily purchasing shares of companies that have dropped in value during this recent pullback. With major indexes still showing negative returns for the year, Rogers emphasized the importance of capitalizing on market fears. He referenced Warren Buffett’s famous advice to invest when others are reluctant, proclaiming it an exciting time for investors. Although the current economic landscape is marked by volatility and uncertainty, Rogers believes there are great opportunities available for those willing to look for value in the market. Among the stocks Rogers has recently added to his portfolio are Sphere Entertainment, Madison Square Garden Entertainment, and OneSpaWorld Holdings. Rogers highlighted that while OneSpaWorld had seen a decline in shares year-to-date, it remains a strong holding for Ariel’s portfolio, citing the company’s diverse service offerings including health and beauty treatments on cruise ships. He believes in the long-term potential of the cruise industry, describing it as dynamic and resilient. Additionally, Rogers pointed out Norwegian Cruise Lines as a particularly attractive investment, currently trading at a single-digit price-to-earnings multiple, which he considers a bargain. He remarked that the stock is approximately 60% below its private market value, suggesting significant upside potential. Despite Norwegian Cruise Lines facing headwinds in the market, such as missing first-quarter earnings expectations and the likelihood of pressured revenue, Rogers maintains optimism about its long-term brand strength and potential recovery as market conditions improve. Overall, he is enthusiastic about the strategic investments being made during this period of uncertainty, as it aligns with Ariel Investments' long-term approach to value investing.