Great Companies, Great Returns: The Breakthrough Investing Strategy That Produces Great Returns Over the Long-Term Cycle of Bull and Bear Markets

by Jim Huguet

Tired of gambling away your savings on investments that don't pay off? Buy Companies, Not Stocks.This simple phrase is the foundation of veteran consultant Jim Huguet's innovative approach to... This description may be from another edition of this product.

• Format: Hardcover
• Language: English
• ISBN: 0767903668
• ISBN13: 9780767903660
• Release Date: June 1999
• Publisher: Broadway Books
• Length: 336 Pages
• Weight: 1.40 lbs.
• Dimensions: 1.2" x 6.6" x 9.6"

Customer Reviews

A core strategy suitable for most investors

The author had at least one glaring factual error -- Nokia's a Finnish, not Japanese company -- but the essence of this book is no less solid. The advice here is mostly repackaged from other sources in a form that is very useful and insightful. It's a lot common sense, but there are a few key insights that I found very influential:* These companies have competitive advantages and tremendous staying power. * They are extremely recession-resistant and globally diversified (important in bear markets and recessions, which we will inevitably encounter again sometime in the future) * Because of their unique advantages they have unparalleled track records of continued above-average earnings growthThe author shows how a disciplined strategy of investing in these companies beats the market over the long-term. I think this advice, combined with dollar-cost averaging, is very useful.On a personal note, I have just started assembling my portfolio, and unfortunately I have been obsessing too much over finding the best values, not overpaying, and worrying about whether prices on such companies are too high. I have also been struggling with whether to adopt an aggressive, mostly technology portfolio composition . This strategy has a place in a good portion of my portfolio and will be combined with tech stocks and some small- and mid-caps. The author shows that these companies are richly valued for good reasons and will continue to be highly valued for their consistent earnings growth. Also, I think that such a strategy is a better alternative to the S & P 500 index, which many people use to make sure they don't underperform the large cap market. Clearly, you can outperform the index by emphasizing quality companies and consistently investing in them over the long-term.

Immensely Sensible

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.

A well-thought alternative to the internet craze.

If you're fed up with mediocre returns but can't stomach the volatility of internet stocks, this book offers an alternative. Huguet explains how a number of old-line companies have collectively been trouncing the S & P 500 by a wide margin for years. But just any established company won't do. Huguet explains in clear and concise terms how to identify these companies by focusing on what makes them great, not some obscure technical analysis that doesn't even look inside the company. This book could easily be titled "It's the basics, Stupid!". In short, a must read for serious long term investors who want to be able to sleep at night content that they own the bluest of blue chips.

This book makes a lot of sense

In concise and easy to understand language, this book delves deeply into the factors that create high and sustainable value creation. This book is not for day-traders and requires the reader to think, but it is likely to become one of the "must reads" for investors learning the ropes.

Outstanding! The first of its kind!

I've read a lot of investment books and have most all of my savings in the market. This was one of the few books and strategies that makes sense. Huguet really uses his experience to make the market understandable and accessible to the average investor. The interviews in the book, like the one with Jack Welsh, really help to bring the concept together. Huguet has talked to some of the greatest leaders in business and used their advice to help make investing easy. Even more impressive to me was, after doing a little research of my own, Huguet actually does outperform the S & P500 on a consistent basis. I think it is well worth the read!