“New World, New Portfolio”
By Julien B. Booth
January 3, 2022
Happy New Year! I hope this note finds you well.
With a new world comes a new process. Over the past several months we have made material changes to our income centric and balanced portfolios.
While high quality bonds and preferred securities once provided consistent income, we have been forced into more equity securities as the prevailing yields on bonds have fallen well below inflation.
The “new bonds” as we often refer to them are the companies that we (Sixty Guilders Research) believe provide the safety, income and durability for client portfolios (like my Mother’s).
These securities are generally household names with long histories of profitability, growing dividend payouts and secure market positions.
Additionally, we demand pristine balance sheet strength. There are no substitutes for hard cash and asset backed companies.
The ability for growth is also included, as we now hold the following as our new Top (non-bond) Holdings:
- Berkshire Hathaway
- Duke Energy
- Visa – V
- BBN/Closed End Fund
- Goldmoney/Mene.com/Newmont Mining
- Intel/Cisco – Technology Value + dividends – CSCO
The transition from income securities carrying the weight of needed returns to a more balanced approach has provided a wonderful opportunity to have Dimitri more engaged.
We started Sixty Guilders Research together well over a decade ago. His intellect, wisdom, and general prudence make him a wonderful co-manager.
I am grateful for him and his role as CIO/Portfolio Manager of Equity securities.
We look forward to tackling this new environment together.
Thank you for your interest. Please advise any questions or thoughts.
Julien B. Booth
Chief Investment Officer – Fixed Income & Real Assets
BRC Wealth Management