As Portfolio Manager of the Arbor Asset Allocation Model Portfolio (AAAMP) I am constantly looking for the best companies to invest in. The AAAMP invests in stocks & ETFs, but not Mutual Funds. If I have an entire industry or segment of the market I want in my asset allocation I may choose to invest in an Exchange Traded Fund (ETF). But if the particular industries or segments have a dominant blue chip company with strategic advantages, rising cash flow, and a clean balance sheet, then I have found one of the best companies to invest in.
For example, in the early 2000’s I believed commodities, and particularly energy commodities, would experience exponential growth due to the growing emerging markets economies. It would have been easy to find a mutual fund or ETF that specialized in commodities; but I felt BHP Billiton (BHP) had strategic advantages due to its’ worldwide portfolio of precious metals, minerals, and energy properties; a solid balance sheet, and their Australia location. At $11 BHP turned out to be a bargain as it took advantage of its’ dominant position in the world. Today BHP is over $100 and has increased its’ dividend several times over the past decade.
The key to successful investing is to put together a properly asset allocated portfolio of top companies in a variety of industries and sectors.
| AAAMP Blog by Ken Faulkenberry | |
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Ken Faulkenberry earned an MBA from the University of Southern California (USC) Marshall School of Business with an emphasis in investments. Ken has 25 years of investment experience and is dedicated to helping people with self-directed investment management through the Arbor Investment Planner. His asset allocation strategies have an outstanding performance record. |
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