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BAX - Baxter International Inc.


giofranchi

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Though frankly, if you expect to underperform the S&P why not put the majority of your assets in an index fund and play around with the rest?

 

The majority of my assets are in companies that basically are similar to funds (I think of them as I think about the Wealth Index built by Murray Stahl): TDG, CSU, the Liberty family of companies, BRK, MKL, ROP, FFH… Also GOOG can be thought of as a holding company. As far as I know, they all have outperformed the S&P500 during the last 5 years, with the exception of FFH (which I basically own instead of cash).

During the next 5 years they might perform much more poorly than they did in the last 5… I don’t know.

Are they expensive right now? Maybe. But so is the S&P500. No? Let’s just say I like the way those companies put together their “funds” better than the mechanical way the S&P500 is constructed.

The only companies I own right now that don’t fit the description are AAPL and GILD. They both seem to be high quality and cheap, and they both have outperformed the S&P500 during the last 5 years.

 

Cheers,

 

Gio

 

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