Recently posed Question:
Why do you favor U.S. equities, when bonds and emerging markets are doing well?
Answer:
When I see 10% free cash flow in a time when yields on Treasuries are at 3%-3½%—and if I have any faith in management that they won’t take that free cash flow and pour it down a rat hole—10% looks a whole lot better to me than 3½%, especially if such companies are doing business in areas that are growing.
Tuesday, December 14, 2010
Subscribe to:
Posts (Atom)
Posts
