(...remember that time that I tried to chase a bunch of high-flying growth stocks? Yeah, I'm unwinding that trade.)
I was looking at my portfolio recently, and on a whim decided to sort it by annualized gain. These stocks appeared at the top: TSLA, AMZN, UA, NKE, AAPL, SBUX
I know hindsight is 20/20, but...it is hard to ignore how obvious of a portfolio that is. No "hidden gems" in that list whatsoever. Any 10-year-old or 70-year-old might have come up with that basket of stocks. I can't help but think that investing is simpler than most people make it seem (myself especially included).
Therefore, let's get all Jack Welch on my portfolio; reward the winners, and cut the losers.
Nike (NKE)
Positives:
+$4.3B cash minus debt.
Massive operating ($4.5B) and free cash flow ($2.2B).
Dividend increased for 25 consecutive years, currently yielding 0.9%.
Negatives:
Somewhat expensive forward P/E of 32.
Tepid revenue growth (5%).
Mild profit and operating margins (11% and 14% respectively).
Low insider ownership (0.18%).
Starbucks (SBUX)
Positives:
Good profit (15%) and operating (18%) margins.
Solid revenue (18%) and earnings (22%) growth.
Dividend increased for 5 consecutive years, currently yielding 1.1%.
Negatives:
Somewhat expensive forward P/E of 32.
-$0.8B cash minus debt.
It is possible, maybe even likely, that someone will come along and make a better cup of coffee someday.
Here's my current portfolio (growth, dividend, and speculative). As always, I believe in all of these stocks - until I sell them.
Apple (AAPL) 13.23%
Tesla Motors (TSLA) 9.97%
Alphabet (GOOGL) 7.22%
Under Armour (UA) 6.13%
Amazon (AMZN) 4.89%
Baidu (BIDU) 4.27%
3D Systems (DDD) 4.21%
Nike (NKE) 4.12%
Blackstone (BX) 3.25%
Starbucks (SBUX) 2.94%
Stratasys (SSYS) 2.90%
Ace Limited (ACE) 2.73%
Southern Copper (SCCO) 2.60%
Intuitive Surgical (ISRG) 2.19%
Twitter (TWTR) 1.96%
Qihoo 360 (QIHU) 1.96%
American Software (AMSWA) 1.72%
Wells Fargo (WFC) 1.64%
Microsoft (MSFT) 1.62%
Cisco (CSCO) 1.52%
BlackRock (BLK) 1.50%
Boeing (BA) 1.42%
Intel (INTC) 1.37%
China Mobile (CHL) 1.34%
Veolia Environnement (VEOEY) 1.29%
McDonald's (MCD) 1.16%
DuPont (DD) 1.02%
Ansys (ANSS) 0.93%
Salesforce.com (CRM) 0.90%
American Water Works (AWK) 0.89%
F5 Networks (FFIV) 0.85%
Aqua America (WTR) 0.84%
American Express (AXP) 0.82%
Costco Wholesale (COST) 0.82%
Canadian National Railway (CNI) 0.80%
Arista Networks (ANET) 0.75%
Coca-Cola (KO) 0.75%
Lululemon Athletica (LULU) 0.68%
Tableau Software (DATA) 0.65%
