Investing in Companies with Exposure to Real Estate in the Residential and Commercial Areas: An Expert Money Manager Discusses His Portfolio Construction Strategy with The Wall Street Transcript

Wall Street Transcript

67 WALL STREET, New York - May 20, 2013 - The Wall Street Transcript has just published its Investing 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: Investing in Financial Services - Long-Term Investing - Large Cap Investing - Value Investing - High Quality Companies - Bottom-up Investing - All-Cap Growth Investing - Investing in Emerging Markets

Companies include: Apple Inc. (AAPL), Google Inc. (GOOG), Baidu, Inc. (BIDU), Sina Corp. (SINA), QUALCOMM Inc. (QCOM), CVS Caremark Corporation (CVS), ConAgra Foods, Inc. (CAG), Boeing Co. (BA), eBay Inc. (EBAY), Amazon.com Inc. (AMZN), Yahoo! Inc. (YHOO), Starbucks Corp. (SBUX), Monsanto Co. (MON), Citigroup, Inc. (C), Goldman Sachs Group Inc. (GS), Morgan Stanley (MS), Bank of America Corporation (BAC), Dell Inc. (DELL), Hewlett-Packard Company (HPQ), VMware, Inc. (VMW), Salesforce.com (CRM), HJ Heinz Co. (HNZ), Charles Schwab Corp. (SCHW), SanDisk Corp. (SNDK), American International Group, (AIG) and many more.

In the following excerpt from the Investing Strategies Report, an experienced portfolio manager discusses his asset allocation philosophy for investors:

TWST: Once you have determined that a theme is compelling, what investment criteria do you focus on as you look to select individual securities?

Mr. Bolton: First of all, there will be capital markets activity in an area if it gets hot, right? You had Facebook, you had LinkedIn (LNKD), you have Twitter coming, you had Sina. Things do happen on the monetization side. Baidu was a situation where it was an expensive-looking deal. But we said, "Wait a minute, this company has 70% market share of China's Internet business, and the Chinese Internet business is growing 100% a year in new users - which it doesn't now, but it did then - this could be a major opportunity."

We are not just reading a prospectus and going to a 20-minute road show presentation. We actually go visit these guys, and we are really thorough about it. And then, of course, the company has to be doing better than planned. And when you have a health theme, those are companies that redid themselves to play the health theme better - ConAgra, for instance.

We know that Peter Lynch said it so well in the 1970s and 1980s. He said, "If you just bought the companies that you spend money at during the day" - just think about the last decade - it would have been, obviously, Google, Starbucks (SBUX), you just go on and on where you would have been. Again, we are trying not to do the commodity-oriented focus. We are trying to get the companies with margins.

One last area that we have been doing a lot of work in over the years is the gaming space, the growth in gambling. Most clients don't want to hear about that, or Monsanto (MON) and the seed/pesticide area, but that's been one last theme that we have had good success in. It sounds crazy, but when you get a Goldman (GS) or Morgan Stanley (MS) prospectus on your desk...

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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