David Winters, CEO of Wintergreen Advisors, explains how you can remain cool in this volatile market.
Transcript and video below:
guys much cooler than us. david winters, a man with even acool name, ceo of winter green advisors. pardon our animal house clip. but i think that’s how people feel. they feel confused. they feel sort of horn swag led, it that a word? and they feel run over. how do you remain calm in this market? it’s hard. people have been bombarded with bad news. every day.maybe take a leaf out of world war ii england where they say keep calm and carry on. you’re absolutely right. the thing that’s startling is stocks are cheap. and you can get great deals oncompanies. and the companies primarily in the wintergreen portfolio doing really well. so there’s a disconnect between the news — how. how are they doing really well? what are you seeing in these stocks and what have you picked to keep calm and carry on while we have this noise going on? i think we focus on the fundamentals. you’re a beautiful woman. you love jewelry, clearly. we love the jewelry business. sully doesn’t love jewelry as well? he knows. there’s just so many things, you know, could be either the stock picks that just go on no matter what happens. so we try to find businesses that are fundamentally strong. like what? before we get to those picks, i want to follow-up with what you said initially which is sort of ignore the noise. how do i — even if a stock is trading at one times earnings. yes. why do i care if i think italy is going to go bankrupt? i mean those types of macro issues are going to keep even value investors out of this market because they just don’t know what a valuation will be going down the road. well, italy matters. but there’s a whole world out there. and there’s lots of good news if you look for it. but are you telling me thatyou’re sitting here when the market’s up 300 points one day,down 400 points the next day, even though you really know this, you’re not losing any sleep? you know, actually, no. basically what we do is kind of figure out what we think something’s really worth. on the day market’s up, you don’t buy any. a day the market’s down, you stand there and buy more jewelry. so you were a buyer yesterday? yeah. of what? i can’t tell you that.okay. tell us what your picks are in general. what’s our list today, brian? norfolk southern. it’s a railroad. they have huge advantage in terms of energy cost. you can’t really build a newrailroad. they have a good balance sheet, they buy back stock, dividends, brian. dividends. just like a cash flow annuity play.yeah. except the annuity keeps growing. uh-huh. so we love it.you also like dentin. i know third quarter profits were higher largely on premium players. yes. a lot of those premiumplayers come from china. and there are questions about what is happening with the chinese economy. will those premium plays stay in the market? i think it will fluctuate. but over time people like to gamble. the chinese, they love to gamble. we are at aqua duct two weeks ago, now operated by genting, is off to a great start. people around the world seek entertainment. and genting has gone from a small malatiise yan company. hopeful they win in canadian natural resources. our whole society is based on oil. as you know, oil goes up and down. but over time oil prices have gone up. and the beauty of canadian natural resources is production profile goes up. and the oils in canada.and canada’s got rule of law. and it’s a safe place to dobusiness. and they kind of like us. we’re safe for now from canada. well, we love canada. that’s all i can say. they kind of like you as long as you’re nice to them. right. no canadian war threat yet. you know, i know jar dine, a name you usually talk about still remains your biggest holding, right? yes. there’s a lot of chatter. romney was tough last night. tough talk on china.do you feel like there’s an issue with what you’re hearing from the republican candidates about let’s get tough with china, manipulate their — currency manipulator, would that lure you off of? we need the chinese.
Prescience Partners returned 6.75% for the second quarter, underperforming the S&P 500's 8.55% return but coming out ahead of the Barclay Equity Long/ Short Index's 2.62% return. However, for the first six months of the year, Prescience is up 30.66%, doubling the S&P's 15.25% return and smashing the Barclay Equity Long/ Short Index's 9.27% return. Read More