Bobby Edgerton is a Co-Founder of the Capital Investment Companies, and has served as an Executive Officer of the companies since 1984. He is also the firm’s Chief Investment Officer and has been in the financial services industry since 1979. After winning the North Carolina State High School Golf Championship, Mr. Edgerton accepted both a basketball and golf scholarships from Wake Forest University and graduated with a B.A. in business and finance. In this exclusive interview with the Wall Street Transcript, Mr. Edgerton details his investment philosophy and top picks for his investors.
Mr. Edgerton has a multi-step discipline to choosing the stocks for his portfolio. “The fifth part of the five-point program is the two ways you make money in the stock market. Number one is by buying good companies and never selling them, then you don’t pay any tax. That works fine in a lot of cases. I bought Apple in 1995 for me and my father’s profit-sharing plan at $36 a share. I bought 500 shares; it split two-for-one, so it went from 500 to 1,000, and then to 2,000, and then split seven-to-one, so it’s now 14,000 shares — $18,000 is worth over $2 million now. I’ve never sold a share, and this is in our retirement plan. Now, will I ever sell and diversify? Maybe.”
Some of the portfolio positions are under the radar of most professional money managers. “Another stock that most people have never heard of is the monstrous FANUC, the symbol is FANUY. They are the largest maker of industrial robots in the world. They have $7 billion in cash, they have no debt, and they are a monster. I’m probably the only guy who buys stocks and in a sense hopes the stocks go down, because I want more shares. I guess my wish hasn’t been granted. FANUC has gone from $16 to $22…”
Overall, Bobby Edgerton concludes that “if you buy a good stock when it’s down and it goes up substantially over time, and during that time you have one stock that’s up and maybe two, three, four, five that are down, they are probably just as good a company, they’re just on a down cycle. You multiply one stock into three, five or six, and then you keep doing that over time, and the stock multiplies, kind of like a chain action in physics…I remember when Firestone back in 1975 had a tire called the 500 which went bad; Wall Street dumped the stock, which they are prone to do on any kind of bad news, and it was around $7. Nine years later, Bridgestone (OTCMKTS:BRDCY) bought Firestone at $80 a share. “
To get more of the Bobby Edgerton positions and their basis for purchase, read the entire interview at the Wall Street Transcript.