As part of a rare televised interview series, Chris Davis, the star portfolio manager of Davis Funds and the third generation scion of the famed investment firm Davis Advisors, has spilled family secrets during the conversation on investing and perfecting the winning strategy. Mr. Davis also expressed his opinion on two of his top holdings: Google Inc (NASDAQ:GOOGL) and Amazon.com, Inc. (NASDAQ:AMZN).
Three Steps to winning investment strategy
In a serialized interview to Anchor Consuelo Mack, of WealthTrack.com, Chris Davis lays bare his thoughts and strategies on investing; allowing investors and professional traders to learn a trick or two on what has kept this family of investors on the winning track!
According to Chris Davis, the key is to combine three investment lessons his family has thus far relied on: “own businesses, not stocks, and focus on long-term value, not short-term expansion.”
In the first part of the series, Chris Davis speaks eloquently on his reasons for the company he holds a stake in through his flagship New York Venture Fund. The character of this fund is largely concentrated on pioneering blue chip technology companies.
Google Inc (NASDAQ:GOOGL) is one of the top picks in the fund’s portfolio, because they were brave enough to look at creating long-term value through acquisitions, despite the inherent risks associated with it. The rich portfolio Google Inc (NASDAQ:GOOGL) picked up, in the form of YouTube, followed by Android, which is currently the definition of open source operating system and the primary driver of the mobile computing industry.
Mr. Davis highlights that Google’s success in investing has been its vision for itself in term of technology and its sense of defense against ‘competitive business.’ The value for him in Google Inc (NASDAQ:GOOGL) was its long-term value it holds.
Another technology pick of his is Amazon.com, Inc. (NASDAQ:AMZN). Davis admits that the reason Amazon is in a predominantly technology stock line-up thanks to its CEO and the primary driver of this e-commerce company which is growing at rates that are unimaginable!
The full video can be watched below: