Consuelo Mack gets great guests on Wealthtrack. Recently she had Steven Romick of FPA Capital on for an interesting discussion. The Romick-managed FPA Crescent Fund has an outstanding long-term record and has an interesting take on contrarianism and value investing. Romick discussed the current attraction of large cap stocks, cash, healthcare and energy.
The most important thing to come out of the talk was the existence of the FPA Contrarian Policy Statement. In this document Romick and his firm detail their investment philosophy. Very few investors go into this level of detail and provides investors with a detailed look at their investment process. Investors cannot complain that they do not understand how Romick goes about investing. Every independent investor would be well-served by thinking through their own investment process in this level of detail.
Stocks mentioned: $CVS, $WMT, $ESV, $MSFT
You can view the entire interview below.