Stocks

Stocks for the Long RunThis is a list of stocks that Fundamental Trends subscribers generally hold for extended periods. On rare occasion we might trade short-term on news or large price swings, however, we are generally on a 3 to 5 year time horizon. People who are looking to trade frequently are genearlly making a mistake. Not only are trying to trade against super computers, hedge funds and investment bankers, they are destined to miss the biggest moves by being "out" when something happens and they wake up to see the news and stock price move too late.

Our core criteria for buying any stock is that we believe it can double in price within five years as a worst case scenario. We believe in building in a "margin of safety" on each purchase.

Most stocks will be released to the public once we are done accumulating a position, generally four to twelve months after initial purchases are made. Often we will use selling cash-secured puts to build a position. Those trades are noted in the Options section. 

Many people will build a 20-30 stock portfolio over a few years and then slowly replace expensive stocks with cheaper stocks. It is a process designed for the patient, thoughtful, forward looking and emotionally controlled. Asset allocation is a seperate issue. Some subscribers buy nothing but stocks, but most blend with an ETF allocation. I recommend blending an ETF portfolio with a stock portfolio. Read the guide you get when you subscribe to learn how to build an asset allocation that is right for you.

Your strongest edge as an investor is the ability to evaluate a company and let the calendar work for you. Not only can you beat the market that way, but you can do other things with your time.

Our "Very Short List" is composed of approximately 100 extensively researched companies that are poised lead over the next several The Very Short List list includes the:

  • Fundamental Leaders group of strongly profitable companies trading at value prices often paying a dividend or engaging in buybacks.
  • Emerging Leaders which have catalysts that could lead to explosive growth. This group also includes highly cyclical stocks, such as energy stocks. 

I also have denoted the companies that are on our Dividend 30 and Growth 30 sublists. The Dividend 30 is ideal for those in retirement looking for income streams and those with deferred retirement accounts (IRA or self-directed 401(K)). The Growth 30 is where we are likely to find companies that can triple or more in price with several years. 

Our "Very Short List" is composed of 50 to 60 extensively researched companies that are poised to double, triple or more in price the next few years. The Very Short List list includes the more conservative Fundamental Leaders group of strongly profitable companies trading at value prices often paying a dividend and the Emerging Leaders which have catalysts that could lead to explosive growth. Before you look at the companies on the list, read this section, every time you come to this page.

While I still very much like the CenturyLink and Level 3 merger, I am bothered by the complaint against the company regarding sales practices. 

I do not think there will be permanent damage to the company, however, I am not interested in taking punishment from the market while things shake out. The stock certainly has the potential to drop into the lower $20s which would represent over a 10% loss on a decent position for me. I can get out even now, so I am. There's smoke and I don't want to get burned if there's fire. See what happened to Wells Fargo on their scandal.

Our "Very Short List" is composed of 40 to 50 extensively researched companies that are poised to double, triple or more in price the next few years. The Very Short List list includes the more conservative Fundamental Leaders group of strongly profitable companies trading at value prices often paying a dividend and the Emerging Leaders which have catalysts that could lead to explosive growth. 

Our "Very Short List" is composed of 40 to 50 extensively researched companies that are poised to double, triple or more in price the next few years. The Very Short List list includes the more conservative Fundamental Leaders group of strongly profitable companies trading at value prices often paying a dividend and the Emerging Leaders which have catalysts that could lead to explosive growth. 

By following the deliberate Fundamental Trends investing and trading approach, investors can build positions in winning companies and ETFs to take part in what Warren Buffett considers the core of his success: "compound interest."