[Note: President Trump announced tariffs on China on the day of this interview] He is concerned about risks arising out of trade rhetoric and trade barriers. He met with Steve Bannon last year; Bannon said that the Trump administration is willing to accept a near-term slowdown in the US economy in order to get trade barriers in place. Grammer sees this as problematic


This is an extraordinarily well-run company. He has been a shareholder for a long time but is not one now because of valuation. He will buy again when the price goes down


This is a decent company. He has owned it but does not now because he doesn’t see much upside at this time. Cost containment would improve their margins and would therefore improve their value. He doesn’t see room for a lot of growth of this company in Europe. The dividend will probably be safe but only modest growth. (Analysts’ price target is 17€, the stock trades at 14€)


This is a very good company, well-positioned, but it is facing pricing pressure. The market share is around 80% so there is not much room for growth. Their recently-released earnings were decent. They increased the dividend a little. This company, like other large mobile operators, is more a dividend play than a growth opportunity. There stock has been drifting lower this year because there is not much interest in the name at this time.


He thinks the spirits industry is in a good position now. Scotch whiskeys are in short supply, other whiskeys are selling well. Diageo is the world leader in this. He will buy this when it hits the right price. He discussed cannabis with them a few months ago. They have made initial investments in cannabis stocks but are still taking a wait-and-see attitude. He expects them to acquire a cannabis company later, after the dust settles.

food processing

This is in a similar place to Orange, China Mobile and other large and successful telecom companies. They are a dividend play, not a growth play. Dividend plays are less attractive in a rising interest environment. This is a rational competitor and investors are not likely to lose money in it.

telephone utilities

He likes it because of its exposure to Entresto, which cardiologists often call a wonder drug. The drug is relatively expensive ($9 per day) so the issue is getting insurance companies to pay for it. He thinks the runway for the drug is excellent and that it will become a blockbuster within a year or two. Pharma companies are under pressure because Trump is currently talking about reducing drug prices, but he (Grammer) is willing to wait on this stock.

biotechnology / pharmaceutical