Saturday, December 11, 2010

Recent Stock Additions As We Enter 2011

The Christmas season is one of the times during the year that I devote substantial time to "shopping for stock bargains." To qualify, the stocks that make the buy list possess many of the following attributes:
  1. They are an out of favor stock, in an out of favor industry.
  2. Their recent performance has been poor (possibly over the last year).
  3. If they are smaller companies they need to have some ownership by insiders.
  4. They need to pass the analysis of various research providers that we value and trust.
  5. They should be owned by other value driven investment firms that we follow and trust.
  6. We have an expectation that they will hold up better in a stock market correction.
  7. We have an expectation that with patience, these stocks can make up lost ground in a flat or up market.
We "shopped for the following bargins" today in WFG portfolios: The following stocks were new additions: CFFN, COV, CSCO, IBKC, INTC, KMB, PBCT, PFE, SCHW, SYK, VPFG. The remaining stocks we already own and are adding to existing positions.

Only by standing against the prevailing winds-selectively, but resolutely–can an investor prosper over time. Such a strategy may underperform during markets that are rising, based upon the momentum of the herd vs. fundamental valuations.

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