Stock-picking strategy: $6 billion fund manager shares 4-part criteria - Business Insider

  • 📰 BusinessInsider
  • ⏱ Reading Time:
  • 45 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 21%
  • Publisher: 51%

Business News News

Business Business Latest News,Business Business Headlines

Richard Lawrence manages $6 billion and only buys 1 out of every 100 stocks he looks at. He details his simple 4-part recipe for sniffing out the market's next big winner.

"He ran a small family office out of Rockefeller center — and dad was a stock-picker," he said on the "He continued: "But the thing I remember from dad was just his love of getting to learn something new every day. That's what thrilled him, and that's what piqued my interest."

"We see about 400 companies a year," he said. "We do really serious analysis on 30 to 40 companies, and we aim to buy 3 or 4 companies." At any given time, Lawrence generally only holds 20-22 positions in the market with 60% of his capital allocated in his top ten picks. Since he only owns a handful of companies, he looks to avoid correlated risks.1. Invest in superior businesses

Lawrence starts his analysis by viewing the long-term track record of management. More specifically, he's looking to see how management behaved in downturns and unfavorable market environments. In doing so, he can better understand how management will react to hiccups in the future."And then thirdly, I believe in bargain valuations," he said. "We want to buy stocks with P/Es [price-to-earnings] half the growth rate and half the return on equity.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

thanks

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 729. in BUSİNESS

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Stock picks to buy, best business models to beat the market: MS - Business InsiderMorgan Stanley handpicks 18 US stocks to buy for the best business models that deliver market-beating returns for years to come Fuck Morgan Stanley and RobinhoodApp 'Morgan Stanley handpicks 18 US stocks THEY HAVE HEAVILY INVESTED IN'
Source: BusinessInsider - 🏆 729. / 51 Read more »

Walgreens to sell drug wholesale business for $6.5BWalgreens Boots Alliance will sell its pharmaceutical wholesale business to AmerisourceBergen in a $6.5 billion cash and stock deal
Source: ABC - 🏆 471. / 51 Read more »