67 WALL STREET, New York - April 1, 2013 - The Wall Street Transcript has just published its Investing in Gold and Other Strategies 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: Value Investing - Long-Term Investing - High Quality Companies - Global Investing - Investment Strategies - Large Cap Investing - Longer-Term Investing - High Quality Companies - Investing in Gold - Long-Term Value Conservation - Precious Metals
Companies include: Berkshire Hathaway Inc. (BRK-A), Apple Inc. (AAPL), CA, Inc. (CA), BMC Software Inc. (BMC), Goldman Sachs Group Inc. (GS), International Business Machine (IBM), H&R Block, Inc. (HRB), Quality Systems Inc. (QSII) and many more.
In the following excerpt from the Investing in Gold and Other Strategies Report, an expert portfolio manager discusses his investment philosophy and his portfolio-construction strategy:
TWST: Which sectors tend to include the kinds of stocks for which you are looking?
Mr. Frank: Yes, that could go in and out of favor. In 2009, it was all health care companies because of the health care bill, and today I would say it's a lot of what I call stalwart technology companies. Definitely a lot of large-cap tech is cheap and most of the low valuations last year were based on Apple's (AAPL) success and then how people thought it was going to disrupt the PC industry. Now, I think we're finding out that a lot of companies in the PC ecosystem are a lot more stable, a lot more essential to running big business. But the prices certainly haven't appreciated and caught up with that, so large-cap technology is something we're focused on right now.
TWST: Would you give us three examples of your current holdings and tell us why each stock was selected and why you like it?
Mr. Frank: In addition to the large-cap technology, because of our wide mandate, we focus also on small- and medium-cap companies. We've been getting a lot more opportunity in that space, even though the Russell's been running because some of our companies haven't kept up with that and some were even actually down last year. So a good smaller-cap technology is Quality Systems (QSII), and the ticker is QSII. They do health care information technology. So they do electronic health records for physicians and hospitals and laboratories. And there are lots of companies in this space, but QSII is in the top five, and only about the top five competitors will be able to comply with the next phase of implementation.
So there is kind of a land grab going on right now. There is a lot of consolidation, but what we like specifically about QSII is the valuation. It's a lot cheaper than most of its competitors, and within the top five, they all have very steady cash flows. Once you install this information technology software, you have to pay maintenance fees every month, and its very high-margin stuff. So it's a very steady business, it's not linked to economy and it's trading very cheap.
Another example of a small-cap technology company that we love is...
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