Voices 3 ways to spot a high-value company
(hint: look for moats)
Allen T. Bond, CFA
Managing Director, Head of Research and Portfolio Manager
A critical tenet of investing is that more risk can lead to higher returns. But as the volatility of the S&P 500 increases, nervous investors are turning to different strategies to help manage portfolio risk. With the Fed continuing to raise interest rates, the traditional ratios of cash, fixed income and equities may need to be adjusted for the new environment. So how do we enable returns to client portfolios in the face of high inflation and a slower growth environment? In my experience, investing in high-quality companies trading at a discount to full value helps mitigate risk and reduce portfolio volatility.
With this definition in mind, I focus on three fundamental attributes that sustain that value creation.
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