“Although bank stocks still have some readjustments to make before I can add more to our Model Portfolio; other areas of the financial industry are showing promise. One of these is Franklin Resources, Inc. (BEN), also known as Franklin Templeton Investments. It is currently trading at a little over $100 a share, which is down considerably from its 2007 high of $145.60. Franklin Resources is a financial services company. Its main products are insurance and a number of mutual funds. “This is a top Blue Chip Stock, with its financials in great shape. The company has been in business since 1947, and its CEO, Gregory Johnson, has been with the company for 25 years. As the world climbs out of the recession, Franklin Resources’ business should improve significantly. There are definite signs of growth. For example, its return on equity is 21%, and it has had a high return on equity for a long time. People who know most about the company, the officers and directors, own 34.8% of the company’s stock. This investment strategy gives them a long-term perspective, without a focus on the next quarter’s earning. After all, each of these executives have a personal stake in their company.”
Russ Kaplan, Heartland Adviser, 1/27/12
