A Store of Cash Comes in Handy
10/10/2007 12:00 am EST
In an exclusive interview at the Chicago Financial Advisor's Symposium, David Winters, the CEO of Wintergreen Advisors and portfolio manager of the Wintergreen Fund (WGRNX), told us that he always likes to have a nice cash cushion. That way, when markets react to some panic in the world-usually every couple of months-he can take advantage of the sales to add shares to his fund.
Winters (an alumnus of Mutual Series funds) suggests that investors do the same. In addition, he recommends that you keep a "dream list"-a slate of companies that you would like to buy at lower prices. His list includes several overseas names such as Nestle, the Swiss beverage and food producer and Hong Kong-based Swire Pacific, a diversified business that holds real estate and which also owns a Coca-Cola bottling operation, as well as an offshore drilling company.
Winters noted that his fund is fairly agnostic as far as market capitalization goes, but he did comment that large- and mega-cap companies are trading reasonably today, as compared to their smaller cap brethren.
(Editor's note: The Wintergreen Fund, which started two years ago, has outperformed its Morningstar World Stock category and has beaten the MSCI EAFE index so far this year. For more information, please see http://www.wintergreenfund.com/index.shtml.)