Achieving an Attractive Rate of Investment Return Over a Complete Market Cycle: Stuart Shikiar of Shikiar Asset Management Discusses His Opportunistic Approach to Investing

Wall Street Transcript

67 WALL STREET, New York - September 17, 2013 - The Wall Street Transcript has just published its Multicap Value Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Bottom-Up Stock Selection - Large-Cap, Deep-Value - Value Oriented Strategy - Value Investing - Large Cap Investing

Companies include: Vodafone Group plc (VOD), Verizon Communications Inc. (VZ), Apple Inc. (AAPL), Honeywell International Inc. (HON), Anadarko Petroleum Corp. (APC), Walgreen Co. (WAG), CVS Caremark Corporation (CVS), AmerisourceBergen Corporation (ABC), Macy's, Inc. (M), Linn Energy, LLC (LINE), Teva Pharmaceutical Industries (TEVA) and many more.

In the following excerpt from the Multicap Value Report, an experienced portfolio manager discusses his stock picking methodology:

TWST: Do you invest internationally as well as domestically?

Mr. Shikiar: We are primarily domestic investors. However, when you own a company like Apple (AAPL), which we owned since 2003, 65% of their business is outside of the United States. With Honeywell (HON), which is an industrial company that we have owned for a long time, more than 50% of their business is outside of the United States.

Vodafone, as I just mentioned to you, has a good part of their business outside of the United States. So the answer is kind of twofold. We primarily look at companies listed and traded in New York, but their underlying businesses are for the most part very global in scope.

TWST: You mentioned Apple as one of your holdings. That is certainly a stock that gets a lot of noise. Why do you still like Apple?

Mr. Shikiar: Well, as I said, we took our first position in Apple in 2003, and we did that after seeing a cover of Fortune Magazine, which was the catalyst to examine the stock. On that magazine cover, which I have right above my left wall here at my office, there is a picture of Steve Jobs and Sheryl Crow, and the article stated how Steve was planning to save the music business and make Apple rock. That was the impetus for us to look at it at that time.

Clearly that turned out to be a very good time to do so. It was the beginning of Apple and music, and then of course that led to its iPhones, then tablets. There is more to come. The stock treated us extraordinarily well and when it peaked in September of last year, the shares got as high as $700 and then started slipping. Even though we liked the long-term fundamentals of the company, we reduced our position size from being very large to being right-sized. For the last year or so, the stock has gone...

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