10-03-2019, 10:26 PM
I thought we might pool our knowledge and build a very high quality port together. Sector by sector. I'll ask that you not copy your entire port into this thread. You can post again later. Industrials would include defense stocks. Maybe follow a few basic rules....
1. Pick one or two stocks and tell us why they would be your pick if you could only choose a few stocks from each sector.
2. Assume a five year hold minimum, because if it's truly good for five it's probably good for 25. Five years is enough time to sort out current challenges.
3. Ignore current valuation for the most part. Entry matters of course, but great ports aren't built overnight anyway.
4. Suggest a stock you have some conviction to own soon. Suggest a stock you would avoid.
I can think of many but I won't hog all the good ideas. This thread is about best in class companies. not a laundry list of stuff we happened to buy.
Honeywell-HON, the more I see the more I like. The balance sheet and income statement look rock solid. They have consistently raised the dividend far above average and struggle to keep it above 2% due to SP appreciation. DIV payout remain ratio is low, debt is low enough. Very diversified. PE is reasonable.
Industrials to avoid... The automakers, but I'll just pick on Ford- F I own it but it's a trade I may regret. Looks like a classic value trap. About the only time to make money is buy them when they are losing money and the PE is -100, if you think they won't go BK. I don't see a clear path ahead for any auto stock anytime soon.
1. Pick one or two stocks and tell us why they would be your pick if you could only choose a few stocks from each sector.
2. Assume a five year hold minimum, because if it's truly good for five it's probably good for 25. Five years is enough time to sort out current challenges.
3. Ignore current valuation for the most part. Entry matters of course, but great ports aren't built overnight anyway.
4. Suggest a stock you have some conviction to own soon. Suggest a stock you would avoid.
I can think of many but I won't hog all the good ideas. This thread is about best in class companies. not a laundry list of stuff we happened to buy.
Honeywell-HON, the more I see the more I like. The balance sheet and income statement look rock solid. They have consistently raised the dividend far above average and struggle to keep it above 2% due to SP appreciation. DIV payout remain ratio is low, debt is low enough. Very diversified. PE is reasonable.
Industrials to avoid... The automakers, but I'll just pick on Ford- F I own it but it's a trade I may regret. Looks like a classic value trap. About the only time to make money is buy them when they are losing money and the PE is -100, if you think they won't go BK. I don't see a clear path ahead for any auto stock anytime soon.
We've already had those threads where we list 500 stocks we collectively own. Most everything is overvalued to some degree. Every stock need not be a table pounding buy today.