BASM is where your investing fortune lies!
In this great BOS interview Alan speaks with Frederick R. Kobrick, "Master" stock picker, mutual fund manager and author of The Big Money: Seven Steps to Picking Great Stocks and Finding Financial Security . Kobrick shares with us his time proven techniques on how to pick the high performance stocks that can appreciate in value a hundred times plus. Indeed Kobrick (whose friend and competitor Peter Lynch calls him one of the best stock pickers he has ever met), tells us his success formula and explains that by owning just a few "wealth" stocks and following his basic principles you can ultimately become truly rich.
If you find that the technical aspects of investing and information overload have blurred your vision when it comes to picking great stocks, then fear not. In this packed interview Kobrick unleashes his magic formula; B.A.M.S. and the critical Seven Steps that will help you pick the great stocks before everyone else discovers they're great. This is a gem of an interview; so listen and learn!
In his wonderfully written book Kobrick describes how he found some of his most successful stocks simply by looking carefully at the products and services that customers and investors love, and recognizing the great business models that create repeatability, the ability to keep producing success. He explains that the average investor should not try to emulate a stock analyst or a technician to find great stocks that will generate great wealth. Instead investors must recognize great companies early -- by understanding their business model, identifying their assumptions, recognizing their business strategy, and evaluating their management. Kobrick calls those four factors BASM, and they are the cornerstone of his investing philosophy. Great managements grow companies and earnings, driving stock prices higher. Kobrick also offers some tried-and-tested ways to know when you have a winner you should hold, and when you should sell.
Bio: Frederick R. Kobrick has managed money for more than thirty years. He spent fourteen years as an investment analyst at Wellington Management Company, then joined State Street Research & Management in 1985. He managed the State Street Research Capital Fund, which was one of the five best-performing funds in the country for fifteen years, according to USA Today. Kobrick's Capital Appreciation Fund was included in Money magazine's "Six Funds of the Decade" in 1996, and cited in USA Today as among the five best funds for the entire bull market.
Kobrick left State Street in 1997 to start his own firm, managing three public mutual funds as well as Kobrick Capital, a hedge fund for wealthy individuals and institutions. He was cited by The Boston Globe as one of the top three investors of the 1990s. Kobrick Capital was named USA Today All-Star Fund of the Year in 1998 and 1999, the only mutual fund ever to win twice.