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Now now a couple of us -- that really are doing a lot today IBM.
And of the Chris for say is you like some of those unconventional -- the tech sector you've got some variation -- cope -- skyworks.
-- -- You don't go -- for apple or Google went to.
Well it will which hard to look at I try to find companies that are grow faster than the on markets that they serve -- so.
There's no doubt that we continue to see smart -- growth but a lot of these companies have the underlying technologies.
That enables their content per device to grow far far faster so.
We're looking for companies who can grow three to four times.
Far far greater growth far for greater margin leverage and a lot of these guys of the components -- so I like to say by the bullets not the guns.
And you're looking at.
He's delays and so forth with the volatility.
And Chris I'm wondering do you think like groupon and FaceBook these types of companies is a remarkable facility or is it individual stories.
Where are you know may be groupon got and little trouble with the SEC.
FaceBook is the looking at some other problems what do think -- Well you know those businesses -- in my -- are getting flooded and there's a number of players out there and you know living social group on FaceBook Google Amazon is even doing coupon earning now.
So away you know it's one area that I I'm a little concerned and not so much about when they go public but the question of who's gonna be around to go.
Public isn't what it is -- your food not -- because in particular her -- little -- just why mean you like companies like Hershey.
You like company is McCormick and young Starbucks I mean your basic.
You know -- food drink companies -- well -- lot of these simple here a lot of these companies they have what I call in elastic demand right.
And it when we look at that people -- -- my chocolate no matter what people might I -- a little people I'm not going to matter -- forever -- -- people about -- -- people buy spices and other things and when you look at both of these are Hershey and McCormick's they are there to three factors is whoever you like them first off.
We're heading into it's a fantastic seasonal time for these names you think of you know Halloween in the holidays not only good for chocolate but good for baking.
And spices and things like that right in the sweet spot so these guys tend to throw off disproportionate.
Cash and earnings leverage.
In the second half of the year great time to buy -- same time.
The raw material prices are falling.
While it passed through prior price increases very good margin -- There and that and that the -- solar that -- -- -- doesn't like six months ago I remember when we're seeing a lot of pricing pressure to the upside yeah love a commodity sugar and cocoa now there is a saying it's going down and these guys about it is all.
I mean if you're looking -- is it all just about risk aversion Christine just trying to avoid.
Taking that risk in finding the most solid locked in even if -- minimal profits you can find.
You know I try to let the data talk to me -- so I'm looking in areas that can given the environment of the micro and macro economic picture cash strapped consumers if you -- high unemployment.
Retail sales falling off where could we be insulated with quality companies.
Great earnings leverage in dividends and those are too great -- -- trinity.
Industries tell me about this one -- the largest real car manufacturer out there and while everybody has been worrying about the slowdown in our domestic economy.
And continue to see real traffic grow.
Why well it's 22 or three key simple answers one is we continue to export a lot of coal a lot of corn and other commodities.
We see a lot of industrial machinery coming up -- year over year real traffic continues to be up.
And I think one of the other reason you're -- I think you might think we're looking at a one year chart in my -- -- of a buying opportunity ailments sagas that.
If you look at -- at -- and yet you're you're actually right I I'd like to between that 22 dollars road at all at the 37.
-- we had these you know again these economic concerns that back down great buying opportunity Warren Buffett likes rails.
We can get arguing that the -- knows what he's doing at container companies -- you know containers that go on the back of that.
It's rail traffic is up you've got to take a look at those companies as well right -- you're actually right the reason why you know.
It wasn't like treating more that is the direct earnings leverage that they have from cyclical perspective.
-- -- -- -- -- -- -- -- -- -- And really -- -- you go like this in a patent companies that maintain patents patent technology patents.
That are held on that are long term long held -- still say that we complaint doesn't get nervous about both.
Well -- that is.
Fire over the last year there's been a brouhaha on -- on the patent front between Google Motorola apple.
Rim we're talking about earlier -- host of companies all these guys are trying to transition their patent portfolio from defense and offensive.
-- people are have been buying Google bought Motorola HTC just bought some patents as well Google just bought patents from IBM so for people wanna play that I'd be looking at InterDigital.
Internet like hundred originally also like -- -- president to Manhattan plays that you say I think dividend parents know they're not.
Okay but you still like -- -- so I'm sorry a pity InterDigital is complex.
Okay our great -- plus we're doesn't patent reform Crist down in DC does that play into what you were just talking about.
Now these companies have their patent portfolio set particularly InterDigital that's got -- -- patent portfolio for forgy and that's the next ten years a -- got great text thank you very much and I that you're looking mathematics investor there's actually a -- here madness missions.
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