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David Winters on CNBC - Likes Coca-Cola, Wynn Macau, Richemont
Ha! At 2% ER on $2B AUM, Mr. Winters will certainly "get rich over time." WGRNX has never delivered the superior returns at reduced volatility that Mr. Winters' track record at Mutual suggested. But, he's still outperformed the indices, which I suspect helps explain why he keeps his AUM.
Here's how WGRNX fares in latest MFO Ratings, along with some other notable World Equity funds:
Bought Wynn Macau and Nestle from the last video posted here and sold his fund. Worked out well so far. KO does has a 3% dividend. Might be worth a flier mid-week, after checking out market direction. Richemont yields 1%; little protection even though he might be right.
I agree with Winters about the EM consumer, although I just lean more towards the Nestle and basic needs/"light luxury" (travel, some tech) than trying to play EM via high-end luxury goods whose demand is going to be highly volatile.
The other play that I like that is highly dull is Abbott (ABT), given their EM exposure and the largest part of their business is now nutrition products. I think the demand for such "quick nutrition" products has a lot of potential in EM countries. Nestle is a way to play this as well (and Nestle is also a play on Pet Food.)
Hour-long discussion of future trends in EM to the executives at FEMSA. FEMSA is a giant conglomerate in Mexico, which includes a significant stake in Coca-Cola FEMSA and Heineken, as well as an 11,000 store convenience store chain (Oxxo).
Of particular note is the bit that starts at 15:10-18:00 and discussion of Coke/health drinks and diabetes.
What concerns me about Coke is that their sparkling core (Coca-Cola) products are going to come under so much focus because of the health issues/sugar. They are coming up with solid products in the popular non-sparking category (Vitamin Water Zero), but I think it's a matter of whether Coke can successfully move with changing consumer desires. Coke isn't going anywhere and people can get a nice dividend, but I think the Coke of 5 years from now will have to be different than the Coke of today. Same thing with McDonalds. Neither is going anywhere, but seems as if the world is shifting.
I worry my manager going on CNBC. Makes me feel his thesis not working and he is talking up his holdings. No more investment in WGRNX for the time being.
No sugarcoating soft demand for soda Major beverage companies are at risk to a "structural decline" in sugar intake, concludes a Credit Suisse Research Institute report.Though the harmful effects of high fructose corn syrup are still being debated by the scientific community, demand for soda products is forecast to stay sluggish.Sector watch: Coca-Cola (KO -0.3%) and Dr. Pepper Snapple (DPS -0.8%) have been busy innovating into more health-oriented categories, while PepsiCo (PEP -0.2%) has more limited exposure to the soda backlash due to its diversified business.
I’ve owned the Mutual Series Funds since the early 1980s, when Michael Price was running the show (those were the days). When Price left, the talk online and at Morningstar, was that Price was the “heart and soul” of the funds and that it might be time to sell (that was the common belief when Price bought the company from his predecessor). I’m glad I held on (I own most of the Series funds).
I did put some money into David’s WGRNX fund when it first opened, and I’m up a little more than 70%. It’s a bit of a disappointment (we are always hoping for the next big star who will give us 20% a year and make us filthy rich). But I’ll stick with him. I like to hold for the long term and I think he’ll earn decent returns with low risk.
Lesson to be learned: The fund company is at least as important, if not more so, as the manager.
Comments
Here's how WGRNX fares in latest MFO Ratings, along with some other notable World Equity funds:
JIC, here's link to MFO Ratings Definitions page.
The other play that I like that is highly dull is Abbott (ABT), given their EM exposure and the largest part of their business is now nutrition products. I think the demand for such "quick nutrition" products has a lot of potential in EM countries. Nestle is a way to play this as well (and Nestle is also a play on Pet Food.)
Hour-long discussion of future trends in EM to the executives at FEMSA. FEMSA is a giant conglomerate in Mexico, which includes a significant stake in Coca-Cola FEMSA and Heineken, as well as an 11,000 store convenience store chain (Oxxo).
Of particular note is the bit that starts at 15:10-18:00 and discussion of Coke/health drinks and diabetes.
What concerns me about Coke is that their sparkling core (Coca-Cola) products are going to come under so much focus because of the health issues/sugar. They are coming up with solid products in the popular non-sparking category (Vitamin Water Zero), but I think it's a matter of whether Coke can successfully move with changing consumer desires. Coke isn't going anywhere and people can get a nice dividend, but I think the Coke of 5 years from now will have to be different than the Coke of today. Same thing with McDonalds. Neither is going anywhere, but seems as if the world is shifting.
Regards,
Ted
Major beverage companies are at risk to a "structural decline" in sugar intake, concludes a Credit Suisse Research Institute report.Though the harmful effects of high fructose corn syrup are still being debated by the scientific community, demand for soda products is forecast to stay sluggish.Sector watch: Coca-Cola (KO -0.3%) and Dr. Pepper Snapple (DPS -0.8%) have been busy innovating into more health-oriented categories, while PepsiCo (PEP -0.2%) has more limited exposure to the soda backlash due to its diversified business.
http://seekingalpha.com/currents/post/1329342
I did put some money into David’s WGRNX fund when it first opened, and I’m up a little more than 70%. It’s a bit of a disappointment (we are always hoping for the next big star who will give us 20% a year and make us filthy rich). But I’ll stick with him. I like to hold for the long term and I think he’ll earn decent returns with low risk.
Lesson to be learned: The fund company is at least as important, if not more so, as the manager.