With interest rates rising, a possible recession looming and stock valuations already having tumbled, this may be a good time for long-term investors to increase diversification for better times ahead.
Fischer co-manages the Royce International Premier Fund, which has $755 million in assets under management and typically invests in companies with market capitalizations of up to $5 billion. In an interview, he explained the fund’s approach to selecting quality companies and named two examples. He said most investors will place themselves in “growth” or “value” camps, but that both of those broad categories might serve them poorly over time. A company characterized as a value play might be earning less than its cost of capital, setting up long-term declines. A company in the growth camp might be increasing sales very quickly while generating low returns on invested capital .
“If we add up all the debt and cash of our companies, our portfolio is net cash. We have more cash than debt,” he added. Examples of companies the fund buys Fischer named two companies held by the Royce International Premier Fund as examples with strong balance sheets, mission-critical products and sticky relationships with customers.
Another example Fischer cited is New Work SE NWO , which provides employee recruitment and branding services to companies in German-speaking countries. The company provides services similar to LinkedIn and Glassdoor, combined.
If you really want to do something meaningful, why don't you step up and do something about things like $MMTLP? I'm guessing you are in bed with these HFs and MMs that screw the everyday person. The retail investor gets screwed, and you just sit here and put on a show.
Or diversify into Crypto ? 🤔