Matthew Watson is Assistant Vice President at James Investment Research, Inc. He graduated from Wright State University in 2007 and 2008, where he received degrees in accounting and finance and received his Master of Accountancy degree, respectively. He has also earned Chartered Financial Analyst and Certified Public Accountant designations. In this exclusive 2,959 word interview with the Wall Street Transcript, Matthew Watson details his firm’s investment philosophy and top picks.
“We were founded in 1972 by Dr. Frank James, who is still the Chairman of James Investment Research. Dr. James was the pioneer of relative strength, or what we commonly know as momentum today. This is something that we still use in our stock selection methodology today. In the beginning, he started managing money for friends and family, and over time, we’ve grown into a firm that manages approximately $4 billion in assets… it starts with preservation of capital as the key to long-term wealth creation. The way that the math works out, if you don’t have large drawdowns in your portfolio, it’s easier to catch up in market recoveries. From there, we do have a top-down macro approach to the economy.”
One of their most interesting picks is an out-of-favor car manufacturer:
“One of the stocks that we think could do well in the future and could actually benefit from some of the negative sentiment that has come out recently is actually General Motors (NYSE:GM). It’s very cheap today, selling for a p/e of around 6, has a very high shareholder yield, meaning dividends and buybacks today are somewhere approximately around 10%. Their sales are mostly in North America. So they’re not hurt as bad by a rising U.S. dollar…”
To get all the top picks and the deliberate investment analysis that leads to them, read the entire 2,959 word interview with Matthew Watson of James Investment Research in the Wall Street Transcript.