Fiscally Responsible Stocks

A client was rightfully concerned about the budget deficits and bankruptcy of many nations, including the US, Illinois and California, and the effect of the governments solution to the problem by printing money. We brainstormed and came up with a list of 14 countries that are living within their budgets and have a reasonable expectation of stability.

An example of one country is Switzerland.

We then identified 2 or 3 companies in each country that have good businesses and are likely to continue in the event of a global crisis.

An example of one company is Nestles. They make chocolate, milk and coffee products, have 50% profit margins and are selling products almost every country in the world.

The portfolio has 28 stocks and they are equally weighted. We implemented this portfolio at Folio Institutional and we are both happy with it.