Robert Hagstrom — Professional Investment Strategist
From 1984 to 1989, American investor Robert Hagstrom was a financial advisor for Legg Mason Wood Walker, Inc. and then portfolio manager with First Fidelity Bank from 1989 to 1991. He later served as President and Chief Investment Officer of Legg Mason Focus Capital, General Partner of Focus Capital Advisory, and Principal at Lloyd, Leith and Sawin. He is now the Chief Investment Strategist of Legg Mason Investment Counsel.
While some critics feel that Warren Buffett’s strategy cannot be duplicated, Robert Hagstrom disagrees. He has authored several books that highlight Buffett’s core investment principles and argues that it is possible to duplicate Warren Buffett’s approach. He created an approach through an accessible series of questions that should be explored with any potential investment.
Buffett’s criteria in selecting companies are straightforward:
• Simple understandable business
• Consistent earnings power
• Good return on equity
• Little debt
• Good management
• $5 to $20 billion in size-the larger the better
• Avoid turnarounds and hostile takeovers.
A concentrated portfolio
Hagstrom says that to excel in today’s environment, investors must be willing to make concentrated bets which means that one should not invest in more than 20 stocks. One should not buy marginal companies just because the availability of excess cash.
Hagstrom’s Background and Credentials
Hagstrom earned a B.A. and M.A. from Villanova University in Pennsylvania. He received his CFA designation in 1992 and is a member of The CFA Institute and the CFA Society of Philadelphia. Robert has written eight investment books including the New York Times best selling “The Warren Buffett Way” as well as “The Warren Buffett Portfolio: Mastering the Power of the Focus Investment Strategy”.
→ Read more about Robert Hagstrom investing strategy on meetinvest and see how a portfolio would have performed using his strategy.