JBL: The Ultimate Equity Tag-Team

At that moment, I decided to never be poor again and started reading every book I could get my hands on about the market and watching financial news nonstop. When I finally had some money to invest, I had no doubt I could do it quite well, and I have. I've had a lot of success in the past seven years through a simple, basic personal finance strategy: Keep cash flow positive and stay as far away from debt as possible.

I invest in companies with the same philosophy. My two stock picks today, Dell (DELL Quote) and Cisco (CSCO Quote), highlight my strategy. Both are cash cows with little or no debt; both are leaders in their field, my perfect scenario. I am willing to take risks in my job with the WWE, but not with my money.

The Main Event

Money goes where it is rewarded; lately that means commodities, real estate and energy. But a large inflow of money into energy or any other sector usually means that you have missed the real opportunity. Don't chase momentum.

I believe you are already seeing a shift back to large-cap stocks with record levels of cash on their balance sheets. These companies are just boring, old companies with huge market share that make a ton of money.

To me, Cisco is the headliner of the group. It has more than $19 billion in cash and investments, with no debt. It is a cash machine with more than $5.3 billion in free cash flow.

Cisco dominates the networking equipment market with an 80% share of all routers and 70% share of all switches. It owns the market and has shown that it can defend its market share. Cisco also has also shown it can increase already phenomenal gross and operating margins, currently 68% and 30%, respectively.