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Lunch » Tags » Books » Reviews » Great Companies, Great Returns: The Breakthrough Investing Strategy that Produces Great Returns over the Long- Term Cycle of Bull and Bear Markets » User review

Immensely Sensible

  • Jan 11, 2000
Rating:
+5
Huguet realizes that many investors are frustrated by the fact that the performance of their investment portfolio is below their expectations. They are often confused about the world of investing. Because they are busy people, they are frequently short of time. Many rely primarily on indexing. Others have just begun their investment journey. They pay too much in taxes. They are concerned about pre-retirement investing. Or they are retired and fear that they will outlive their money. They may be concerned about financing the education of children or grandchildren. "Is there an investment strategy which will produce great returns over the long-term cycle of bull and bear markets?" Huguet asked himself this question and then began rigorous and extensive research to answer it. Great Companies, Great Returns is the result of his research.

Essentially, Huguet concluded that there are certain stocks which every investor should own. Which stocks? He next concluded that there are a few great American companies in which to invest, companies whose stocks will produce outstanding, tax-efficient returns in a variety of market conditions. OK but which Great Companies? He identifies and then explains his selections.

The strategy which Huguet advocates makes compelling sense for those whose long-term investment objectives are to maximize returns while minimizing risks and taxes, and thereby achieving the greatest returns (over time) from publicly-traded stocks. Large-cap companies really do have significant strategic advantages over their smaller-cap counterparts. Of these, Huguet has selected only 14. If a reader of Great Companies, Great Returns has a better combination of traits and/or a better selection of Great Companies in which to invest, Huguet would be delighted to know. (So would I.)

I rate his book so highly for two reasons: Huguet's rationale for long-term investment is sound, and, while explaining his reasons for it, he provides a brilliant analysis of the companies in which he believes such an investment should be made. My guess is that this book will be most valuable to those who need both the rationale and the research in support of it.

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About the reviewer
Robert Morris ()
Ranked #168
Professionally, I am an independent management consultant who specializes in accelerated executive development and breakthrough high-impact organizational performance. I also review mostly business books … more
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Wiki

Great Companies, Great Returnsshows that anyone can trounce the stock market over time just by investing in "the crown jewels of the best economic system on the globe." Jim Huguet builds a convincing case for accumulating a portfolio of stocks in American International Group, Bristol-Myers Squibb, Citigroup, Coca-Cola, Colgate-Palmolive, General Electric, Gillette, Johnson & Johnson, Medtronic, Merck, Merrill Lynch, Pfizer, Procter & Gamble, and Schering-Plough. "These Great Companies don't have just good quarters or years; they consistently have good decades. They are not just great American companies, they are companies that can compete with and win against any company anywhere in the world, and they do, day after day after day."

According to Huguet's research, anyone who invested equally in all these 14 stocks for the 10 years between December 31, 1988 and 1998 would have beaten the S&P 500 index by an amazing 56 percent. The results are nearly as impressive for the 20 years ending in 1998. Why do these blue chips perform so well? Huguet says they share important traits: they derive no less than 40 percent of revenues from international operations; and they have superior management, dependable earnings growth, outstanding shareholder returns, distinctive brands, and track records of at least 50 years. The author also provides the details of his investing style, along with interviews with CEOs John Welch of GE, Maurice Greenberg of AIG, Alfred Zeien of Gillette, and William...

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Details

ISBN-10: 0767903668
ISBN-13: 978-0767903660
Author: Jim Huguet
Publisher: Broadway

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"Immensely Sensible"
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