David Winters: Having the Right Investments Will Make You Rich
Consuelo Mack of Wealthtrack recently interviewed the portfolio manager of the Wintergreen Fund (WGRNX), David Winters. This is a 27 minute interview (available below).
Winters said he believed the recent rise in interest rates was for real and inevitable, but that wasn’t preventing him from finding lots of exciting opportunities in stocks. Winters indicated that uncovering businesses with a coupon growing faster than interest rates will enable them to generate attractive returns. Winters defined a growing coupon as growth in earnings, free cash and business values.
Winters sees the economy getting better in the U. S. and Asia so investors have “the wind at your back.”
Winters said inflation will go higher so they look for businesses that have pricing power. In this environment Winters sees bonds as a terrible investment.
The watch and jewelry business is interesting to Winters. As such, Swatch Group AG ADR (SWGAY) is an attractive opportunity and a fabulous business, according to Winters.
Winters finds Nestle SA ADR (NSRGY) a good play on the growth in people’s love for their pets via its pet foods.
Winters discussed the allure of jewelry maker Compagnie Financiere Richemont SA (CFRUY).
The gambling mecca Macau was mentioned by Winters as an opportunity which Steve Wynn will be capitalizing on.
Jardine Matheson Holdings Limited (JMHLY) is another holding that Winters sees appreciating. JMHLY is a diversified company with substantial holdings of Hong Kong real estate.
Winters mentioned Brazilian credit card company Cielo SA (CIOXY), which he sees as an opportunity to profit from Brazil’s 190 million consumers.
Back in October 2012, Winters identified investments trading at massive discounts to their asset values [link].