67 WALL STREET, New York - November 12, 2013 - The Wall Street Transcript has just published its current Investing Strategies Report. This special feature contains expert industry commentary through in-depth interviews with highly experienced Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
Topics covered: Large-Cap, Deep-Value - Disciplined Growth Approach - Bottom-Up Stock Selection - Investing in Financial Services - Index-Only Investing - Corporate Restructuring - Repurchase Activity - Tax-Efficient Investing
Companies include: American International Group, (AIG), General Electric Co. (GE), General Motors Corporation (GM), Goldman Sachs Group Inc. (GS), Citigroup, Inc. (C), JPMorgan Chase & Co. (JPM), TD AMERITRADE Holding Corporat (AMTD) and many others.
In the following excerpt from the Investing Strategies Report, an experienced money manager discusses his investing methodology and current top stock picks:
TWST: Let's start with a bit of an overview of Fried Asset Management and The Buyback Letter.
Mr. Fried: Fried Asset Management employs a strategy of investing which we simply call "the buyback strategy." That means we stay invested in companies that have repurchased enough stock and repurchased stock to have substantially decreased their shares outstanding, net of any option issuance over the recent time frame. We combine that strategy with some sectors and some fundamental and some technical analysis to pick our portfolios, so we typically wind up with about a 30-stock portfolio.
In The Buyback Letter, we present these portfolios, don't give a lot of commentary, but we have five portfolios in it. We do a sector portfolio for high-tech, we do a sector portfolio for the health and biotech, health care area. We do an income portfolio, a Dow Jones portfolio, which includes Dow Jones stocks, which have bought back the most stock. Additionally, we have simply a diversified 20-stock portfolio.
TWST: Why did you select high-tech and health and biotech, for the sector-specific portfolios? What was it about those areas that attracted you?
Mr. Fried: I was looking for growth areas that might do well combined with buybacks so I could offer the subscribers a way to invest in those areas. They are typically areas of investing that garner a lot of subscriber interest. There are a number of mutual funds, sector funds, and those areas are really pretty big, they attract a lot of money. I selected them because I thought the subscribers would be interested in it. The health and bio in particular has been a great performer. The high-tech has been good, not as good as the health and bio, but the next time frame may be different.
TWST: In terms of the composition, how would the income differ from the diversified 20?
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.