How would you describe your sell discipline?
Finn: Our sell discipline is to cut back when we are uncomfortable with valuation, and to sell to zero when we think the operating performance is above a normalized level and unsustainable.
Do you have any positions in local companies?
Finn: General Mills, Inc. [NYSE: GIS], is our largest single overweight. It’s a great example of a company with very high returns on capital: 17 percent. They have some secular changes that are benefiting them . . . with consumers eating at home more. They have good product innovation, whether it’s in their bars or yogurt or cereal business, where they are trying to play into the health-conscious movement. The fear in General Mills and other food companies is that while they may be able to raise prices, they’ll lose volume. But what we are seeing is that they are raising prices and maintaining volume.
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Tony talks each month with local fund mangers about their strategies and stock picks. To read more, go to tcbmag.com/ideasopinions/portfoliopositions.
7/2008
Get the wealth management scoop as Tony talks with Charlie Kelley of Compass Capital Management.
