If you want some sound investing advice, free of charge, look no further than a successful fund manager’s investing portfolio.
The figures speak for themselves — looking at Geoff Wilson’s three ASX-listed companies, WAM Capital Limited (ASX: WAM), WAM Active Limited (ASX: WAA), and WAM Research Limited (ASX: WAX), any investor would be content. The share prices of the three companies are up 23%, 15.19%, and 46.85% respectively in the past 24 months. The three companies all offer something unique to investors, giving Wilson’s organisation a reputation as a one-stop investor shop.
WAM Capital Limited is the largest of the three, boasting $334 million under management. The company’s focus is on a rising stream of fully franked dividends and provides capital and investment security. The company currently returns a fully franked dividend of 6.5%.
WAM Active Limited has a current market capital of $24 million, making it the smallest of Wilson’s companies and, as the name suggests, it is predominantly involved in ASX-listed shares with a focus on absolute returns. Some of the companies included in the investment portfolio are Coventry Group Limited (ASX: CYG) and Brickworks Limited (ASX: BKW).
WAM Research Limited has recently been highly successful in returning value to shareholders. Improving capital growth by almost 50% in two years, WAM research focuses on small to medium-sized industrial companies that aren’t waiting on a new major discovery, like their mining counterparts.
Wilson’s philosophy is simple, you’ve got to love the stock market, look past the spreadsheets and financial accounts and understand how it works. Looking at a company’s business model, stock price, and forecasting earnings and profits is a good place to start but it’s all about knowing who has your money and who is going to put it to the best use.
With price-to-earnings ratios of 41.63, 48.16, and 65.2 respectively, none of these companies appear cheap, but owners of the shares must believe in WAM management’s ability to steer this investment organisation in the right direction.
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The Motley Fool’s purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool’s free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. Motley Fool contributor Owen Raszkiewicz does not own shares in any of the mentioned companies.
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