CONSUELO MACK: This week on WealthTrack…How do you hit the investment jack pot? Wintergreen fund’s David Winters explains his trifecta formula of buying companies with growing earnings, shareholder friendly managements and low prices. Great Investor David Winters is next on Consuelo Mack WealthTrack.
Hello and welcome to this edition of WealthTrack, I’m Consuelo Mack. Those of you who are regular viewers know that more often than not our guests march to the beat of a different drummer. No matter what the economic, or market climate they each have their own distinctive and disciplined investment approach from which they do not deviate. Their consistent research and analytical skills might lead them to different types of investments and securities over the years but how they get there does not change.
As you will discover in a moment this week’s guest is a prime example. So what tunes have the Wall Street crowd been playing? Here are a few current commonly heard themes: If you must be in the stock market, and many investors are not convinced you should in any size, the U.S. Stock market is the best place to invest. The expression I have heard many times is the “U.S market is the cleanest shirt in a dirty laundry”. Growth and momentum are in… hence the popularity of social media stocks. Value and quality are out, which is why many blue chip stocks have languished. Emerging markets are the worst place to invest. Well these are not the sentiments of this week’s guest. As a matter of fact he is on the opposite side of these popular themes. He is David Winters, portfolio manager of the value oriented Wintergreen Fund which he founded in 2005 with the flexibility to invest like a hedge fund. It can go anywhere around the globe and invest in just about any asset class including distressed securities and arbitrage. Winters was nominated for Morningstar’s international stock fund manager of the year award in both 2011 and 2010.
When I taped the interview with noted value investor, David Winters he spoke of his sizable position in Coca Cola because of its improving business, cheap stock, and shareholder friendly dividend and stock buyback programs. This week however Winters turned from a management fan to a critic over the company’s proposed 2014 executive compensation plan and publically complained to Coke’s board and largest shareholder, Warren Buffet’s Berkshire Hathaway.
DAVID WINTERS: The coca cola company with this new plan is suggesting to shareholders, soliciting their vote, that 24 billion dollars over the next four years is an appropriate level of compensation to transfer from the shareholders’ pockets to management. $24 billion is a lot of money! $24 billion is a lot of money by anybody’s standards.