Holdings include such familiar names as Coca-Cola ( KO), International Business Machines ( IBM), and Exxon Mobil ( XOM). "We want to have a portfolio that is easy for our shareholders to understand and hold during difficult times," says Trautman. Once he buys a stock, Trautman rarely sells. He turns over 7% of his portfolio annually, compared to a figure of 71% for the average large blend fund. Of AMF's current holdings, a dozen have been in the fund for more than 10 years. While Trautman sometimes sells when a company's fundamental outlook deteriorates, he does not panic in response to troubling headlines about short-term problems. JNJ). The stock has suffered recently because of product recalls. But Trautman argues that management is addressing the issues. "The company's business model is not damaged," he says. Johnson & Johnson's earnings are growing, and the company pays a dividend yield of 3.6%. The stock sells for a modest forward price-earnings ratio of 14. The only new stock that AMF has bought in the past year is E.I. du Pont ( DD). The stock yields 3.5%. Trautman says that earnings should increase as the company moves into businesses with higher margins. Although prices of blue chips have climbed in recent years, Trautman argues that his stocks remain compelling values. At a time when 10-year Treasuries yield 1.66%, stocks in the AMF portfolio boast a dividend yield of 2.5%. Trautman says the dividends are especially attractive because they have been growing at an 8.6% annual rate. If that pace continues for 10 years, the portfolio will yield 5.4% based on the original capital. Follow @StanLuxenberg This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.