profit loss risk

Kenneth Orr on Why Boring Companies are Often the Best Investments

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As the Chief Investment Officer of KORR Acquisitions, Kenneth Orr has a unique perspective on the financial world. He graduated from Tufts University in Medford, Massachusetts in 1988 and took post-graduate courses at Harvard and Columbia Business Schools. He started his career with North American Agriculture, where he was involved in commodity training. Under his direction, the company’s sales grew six-fold.

Throughout his career, Kenneth Orr has been concerned with value investing. This is the practice of finding stocks that are undervalued and waiting for the market to catch up with them. He has also been involved in hedge fund investment and small-cap funds.

Orr is also heavily involved in charitable organizations. His own charity, the Korr Foundation, supports the Make-A-Wish Foundation, the Leukemia & Lymphoma Society, and the American Red Cross, among other deserving nonprofits.

With his broad experience in the financial sector, Orr has valuable guidance for the average investor. His tips and tricks will help even the most novice investors achieve growth in their portfolios. One of his most closely held opinions is that “boring” companies make excellent investments.

Boring Companies Versus Media Darlings

With all the media coverage of certain rapidly growing stocks, “boring” companies with steady rates of return are often ignored. Orr reminds investors that the stocks that are generally in the public eye are subject to rapid growth, but can fall just as quickly. For the long-term investor, it is best to keep a large portion of their portfolio with steady, slow-growing stocks that will show a reliable return over time. High-risk and high-reward stocks can form a smaller part of the portfolio for the average investor.

Kenneth Orr reminds investors to look beyond the headlines to build a solid portfolio. An expert investment manager can help the average investor to leverage their money in today’s market properly.

Finding Companies with Steady Growth

When searching for a company with steady growth, look at its stock price over time. If a company is experiencing consistent returns at or above the rate of inflation for several years in a row, look at its fundamentals and determine whether the company has staying power. Stay away from companies in boom and bust industries, as well as new companies which may encounter misfortune in their first few months or years.

The Importance of Dividends

When a stock’s rate of return does not outpace the rate of inflation, some people may object to investing in it. While it is true that investing in a slow-growth stock requires patience, investors should consider that these stocks often pay generous dividends. With the dividend value added, investors can feel more confident in placing money in these stocks.

Keeping A Diversified Portfolio

Orr recommends that his clients structure their investments sensibly for a steady level of profit. Investments can be proportioned to match certain desired levels of growth. For conservative investors, it is smart to have 50% of assets in bonds and other flat-rate investments. 30% of investors’ money should be in short-term investments. US stock should form a smaller part of the portfolio at 15%. 5% of the portfolio should be in foreign stocks.

When considering which stocks to invest in, people can similarly structure their portfolios. Invest roughly half of your stock budget in slow-growth stocks, and balance these with riskier bets. Investors should not try to eliminate risk, but instead to manage it by the desired outcome. The balance of investments can be changed to increase or decrease the projected rate of return.

Success for the Average Investor

Through his work with KORR Acquisitions, Kenneth Orr focuses on helping investors spot undervalued stocks and follow their success over time. This strategy can work for the average investor. Together with the tips presented here, Orr can help the average investor achieve success in the financial market.

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