Identifying Differing Trends in the U.S. Versus Overseas: Not All Countries Have the Same Desire as Those in the U.S., Says Paul Sutherland, President of Financial & Investment Management Group

Wall Street Transcript

67 WALL STREET, New York - April 5, 2013 - The Wall Street Transcript has just published its Investing in Gold and Value for Downside Protection 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: Hawaiian Electric Industries I (HE), Berkshire Hathaway Inc. (BRK-A), Total SA (TOT), U.S. Global Investors, Inc. (GROW) and many more.

In the following excerpt from the Investing in Gold and Value for Downside Protection Report, an expert portfolio manager discusses his investment philosophy and portfolio-construction strategy:

TWST: You mentioned a global investment philosophy. Do you invest worldwide?

Mr. Sutherland: We do invest all over the world, although there are some countries naturally that you don't want to invest in. We are wary of Russia, some countries in the Middle East, Northern Africa, and some companies or countries in South and Central America, because they don't have good common law protections for investors or are imbedded with significant corruption at the government and societal level.

When you do invest in them, you have to make sure you know who you're investing with, and you need to know what the risks are. Just as we wouldn't invest in an unethical company in the United States, you wouldn't want to invest in an unethical company in another country.

TWST: In addition to values, what else defines your investment philosophy?

Mr. Sutherland: We like to buy companies at great prices, we believe price matters. So we try to buy companies at really good prices where we're compensated for the risk, because investing is inherently risky. And so you want to make sure that you're doing everything you can to manage the risk. All investing is risky - CDs, bonds, money markets and annuities have trouble keeping up with inflation; stocks and real estate fluctuate. Everything is cyclical, so we believe the best risk-reduction tool is finding a good, ethical, seasoned investment manager.

We do all that normal stuff that money managers are supposed to do, which is look at the balance sheets, look at the cash flows, look at the earnings, look at the free cash flow, look at what the earnings power of the company is going forward. I think we have had success as a money manager because we try to stand in the future and ask...

For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

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