Investing Tools for Investors Looking to Excel
10/21/02  

New Money Buys

These are equities you should consider with new money or proceeds from sales looking for a new idea(s). This list will be changed periodically. We think this might be more useful and thought provoking then a pure "buy and hold" approach, which has proven a formula for lackluster results and roundtrips, unless the investor used targets and protective stops on a sliding basis. We consider the following in arriving at ideas;

• timeliness (mostly technical factors)

• valuation,

• discounts to the market and peer or industry group

• growth dynamics

• Good thematic backing

• industry trends and competitive dynamics.

• Degree of accumulation being demonstrated.

• A need for balance between growth and value overall.

• Avoiding excessive industry concentration

We can have a cash portion of this portfolio, as well as the ability to add bonds if they particularly attractive. All ideas have targets and sell stops. We may elect to raise targets and protective sell stops if the performance and prospects warrant. This would allow you to stop your losses early and let your profits run. 

These are stocks with intermediate to long term attractiveness and only coincidentally would have trading appeal. Further, they have not been constructed with an eye to achieving perfect industry sector weightings. In fact, they are relatively indifferent to industry concentration. They do have weighting in high beta techs, financials, and value.

To see previous New Money Big Cap Portfolios, go here. 

Disclaimer

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