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What do you want to make money from market chaos break out of your shell people Donald -- -- is here to teach you how he says he's got a plan.
On how you can do it the president of -- to an asset management in the co manager of the Jackman funds joins us -- a Fox Business exclusive from Austin, Texas and -- -- -- we -- should Donald co winner.
The Smart money best US large cap fund congratulations.
But this is just one of many accolades that -- won over the years -- there's something about the way you pick stocks.
First before we get to your names and -- us a primer on how you look at something and say that should be part of my portfolio.
-- we try to do is use all of our experience to project a forward.
Rate of return and then adjust for the risk.
So it's a risk adjusted -- -- and try to get the highest ones all the time so you've got that.
Formula and the formula appears to be working your annualized returns over the past five years are about 9% but your five year fund performance.
Up sixteen point 7% -- -- compare that to the S&P it looks fantastic.
-- and I find that that we don't get a lot of people like you -- who who actually can completely show.
But there's proof in the putting about the way you do things now some of the names that you have in your funds Cisco Clorox Johnson & Johnson Coca-Cola.
But I want to quickly get to one of your fourth largest holdings that's Microsoft.
-- making money today depending on where you bought that stock and personal where did you buy Microsoft Hampshire was that several different points.
Right right we've brought a lot of it and low twenties and we've filmed in three years really.
I think -- haqqani but it this is just a very inexpensive.
Stock that's -- And today it certainly has a lot of buzz of news about it it announced that it was coming out with that.
New tablet called the surface.
What did you think of that announcement.
Well to be honest were less enamored with their ability to manufacture hardware -- in that area but I think I think what is an extension of making computers.
Smaller and in.
Doing all these things and people don't want lug around big machine self.
I think this is an extension of a basic trend that's occurring.
Let's get -- -- -- participate.
Go ahead going -- I was gonna say you know when you look at you look at Microsoft and get him.
Everybody -- bought this at twenty or so so he's definitely done extraordinarily well the price earnings ratio of Microsoft is very palatable it's still at about ten.
It's got a little bit of -- yield two point 7% to you to care about evidence that does is that a driver when it comes to picking stocks for new.
Now I I think it dividends are really a derivative of cash flow and that's what we focus on is the cash flows.
But it's a very unique period in history where you see so many companies that are very big.
Companies that are relatively mature paying dividends in excess of the thirty year US treasury bond.
Mean that probably tells you the bonds are more or over -- -- these stocks are underpriced but this is a very unusual period.
We made that point at the top of the show I hope you were watching let's get to three picks you wanna talk about today the first one.
Relatively basic and that's Procter & Gamble -- do you see this -- going.
Tried again and in all cases these these stocks are just very cheap and an honor risk adjusted -- return basis.
We think -- will provide investors good returns but remember the other thing about our strategy is it's very long term I mean we're talking about.
Many years for most people just to have a hard time.
With -- looking that long long term.
Sure -- go back to the basics of long term investing News Corp.
the parent of this network is a pick you like right now give us a couple of reasons why.
Well the the basic.
Biggest part of of News Corp.
is the fox cable news network.
And that network his move toward more of a -- driven business toward cable and away from advertising.
And it's grown rapidly in fact if you looked at the operating profits and set them aside and looked at.
They're big the growth rates that division is very similar apple what Apple's done over the last several years and -- I really amazing.
You don't you even say Pepsi's Frito-Lay division is so successful they could change the name of Frito-Lay -- so it's so strong.
That's that's correct yeah -- it's -- and in the carbonated beverage business while -- struggling in the US so continue to grow internationally.
They have Tropicana they have -- -- they have the Quaker products and dominate the snack food.
Listen I'm all about Gatorade hate Donald -- you so much when your topic look to have you back on thank you.
Thank you for having me any time McDonald gets he's slow and steady is winning this race Don Jackman as president of Jackman asset management.
Co manager of the -- funds very nice perform -- five years sixteen point 7%.
Closing bell --