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.

I am adding a second amount of HP Inc. as it is hovering around $14 per share which as detailed in the forum is a strong support level. 

See the prior buying note for more details about the company as well as their investor page: http://www8.hp.com/us/en/hp-information/ 

If the company falls all the way down to crash support levels I would likely sell puts to defray my cost basis in the existing position. I'd likely not buy calls in this company, however, would in others that are more growth oriented. HP is a value play with a generous and well funded dividend.

Buying to 1/2% or 1% of a portfolio HPQ common shares at about $14 per share.

I've been trigger shy about buying HP Inc. for a long time, however, almost everything is looking up for the company now that their remodeling is done. 

HP spun off their enterprise division, which is also attractive and has been greatly improving their balance sheet. Shareholder Yield which is a measure of the three ways that management can distribute cash to shareholders, dividends, stock buybacks and debt reduction, has been very impressive, clocking in over 20%. 

This month we roll-out the new format for our "Very Short List" of 40 to 50 extensively researched companies that are already or are poised to be leaders in a rapidly changing world that offers both risk and opportunity. The "Very Short List" is broken down into Fundamental Leaders and Emerging Leaders

Our Fundamental Leaders are comprised of rock solid cash flow generators, most of which that pay a dividend. Our Emerging Leaders offer more risk, but the potential for triples or more over the next several years. If you are looking for a mix of companies that can be the core of your portfolio for years to come, these are the stocks to own. This month we add 3 new names to the "Very Short List."

The Fundamental Leaders Stock List is available to subscribers here, however, I do email it periodically to people signed up for "FREE Research" on the front page.

This list is built by screening the market with several high-end tools, multiple formulas, insights from various analysts and my 20 years of experience I have been able to curate a universe of companies that lead their markets. If you like consistent investment returns with a little less risk, usually with dividends and/or share buybacks, then these companies are worth buying at the right prices. These our Blue Chips in the most important way: Quality.

There are two ways to get this list. First, become a subscriber to Fundamental Trends. The other is free and simple. Subscribe to our periodic updates via the "free research" tab on the right hand column of the site. I will be including our "Leaders" lists to "free research" subscribers. Subscribing to "free research" is a great way to try us on for size.

Each month I update the limit order price ranges on our "Very Short List."  This list is made up of about 50 companies that we would love to own shares in (usually 20-30 at any one time) if there were some event that suddenly pushed prices down by 5% to 20% - like August 24th, 2015 when the market opened sharply lower and then quickly rebounded. Since we don't know which day the market will wake us up with a negative surprise, we set limit orders for our initial positions. If markets continue downward, then we will add more stock positions as the markets settle. Below is our "Very Short List" and the prices we are buyers at: