As an investor it is up to me to decide who I do and do not trust with my money.
There are different 'trust' factors to consider when buying shares, but two I focus on to are the management team and the risk exposure the company has. Obviously both factors can change at any time, but here are four companies I trust today:
1. Telstra Corporation Ltd (ASX: TLS)
Telstra Corporation drives confidence through its scale and dominance, but also because of its forward focus. The telecommunications industry is evolving rapidly and Telstra's focus on internet and mobile platforms will help it keep ahead of the curve. As an investor this aligns with my objective of buying great companies for the long term.
Telstra is a company to consider buying for a worry free retirement and though I don't currently own shares in the company I would certainly consider it if the share price weakened.
2. Senex Energy Ltd (ASX: SXY)
My faith in Senex Energy Ltd stems from the strong management team, focused on continuous improvement in its operations.
Led by CEO Ian Davies, Senex actively benchmarks against other top companies to improve operations and reduce costs. This is something every company should do, yet is rare to find.
Senex has established a history of following through with its promises and the successful completion of a 30-well drilling program in the 2014 financial year is a prime example.
3. Fisher & Paykel Healthcare Corp Ltd (ASX: FPH)
Breathing device manufacturer Fisher & Paykel is also led by a strong team, including longstanding board member Gary Paykel, son of founder Maurice Paykel.
The company aims to double constant currency revenue every five to six years, yet is not known to chase acquisitions. Fisher & Paykel is a feisty competitor to ResMed Inc. (CHESS) (ASX: RMD) and the tailwind of growing healthcare demand lowers risk exposure.
4. Yellow Brick Road Holdings Ltd (ASX: YBR)
On the flip side Yellow Brick Road is still in its infancy but is making some smart initial acquisitions which will drive growth and should deliver value for investors. Management has a good track record and the company is run by Wizard Home Loans founder Mark Bouris.
