Invest in What You Understand: Houston Texans Owner

Like a lot of investors, Houston Texans owner Robert McNair tries to invest in “things I understand,” he told CNBC Friday.


As a Houston resident, he invested in the National Football League’s Houston Texans after the previous Houston team, the Oilers, decamped to Tennessee. McNair’s investment paid off with the team becoming the 2011 AFC South champion, although it didn’t make it to the Super Bowl.

As CEO of The McNair Group, he is invested in real estate in Houston. As chairman of the private equity firm Palmetto Partners, he has 75 different partnerships, including with King Ranch, a citrus operation.

And as the founder of Cogen Technologies, an energy cogeneration firm that was sold to Enron in 1999 before its collapse, he is “heavily invested” in energy stocks. In fact, 35 percent of his portfolio is in energy, he said, mainly with companies that pay dividends.

“If somebody’s paying a dividend, they’re making real money. I can understand that," he said.

Some of those companies include Kinder Morgan, which got a step closer to closing its deal for El Pasoafter agreeing with federal regulators to shed some pipeline assets; Plains All American Pipeline; ExxonMobil, and Chevron.

He’s “very light in financials and we’ve never been real heavy in technology,” he said. But to balance the energy stocks he’s invested in firms in other industries including Pfizer , Coca-Cola, and Prosperity Bancshares.

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McNair owns shares of the companies mentioned.