Top Picks from Top Investors
Our watch list for the Ultimate Stock-Picker's Portfolio.
A good watch list is crucial to an investor's success, and in managing the Morningstar Ultimate Stock-Picker's Portfolio, I'm constantly monitoring my watch list for both new and existing ideas with attractive three-year annual expected returns. Presently, a few stocks have migrated to the top of my watch list, and although I don't plan to add a new position to the Ultimate Stock-Picker's Portfolio as this juncture, I always want to have a few ideas ready to eventually recycle the portfolio's capital into higher-expected-return opportunities when the time is right. To continue receiving regular updates to my watch list, please be sure to sign up for my free e-mail alerts.
While most of you are already quite familiar with my methodology in both managing this portfolio and compiling my watch lists, I wanted to provide a reminder to some of my newer readers. In short, the Morningstar Ultimate-Stock Picker's Portfolio essentially asks the question, "What would someone like Berkshire Hathaway (BRK.B) CEO Warren Buffett buy, and are these particular stocks still attractively valued enough for me to earn good returns on my capital over time?" To this end, I routinely aggregate the holdings of a group of very well respected investment managers with excellent long-term track records to determine which stocks are most commonly held by a group of 20 of the best investment minds around. I then overlay these picks with Morningstar's equity research to determine if these stocks are presently priced to offer new investors the opportunity to still earn good returns on their capital. A stock held by a few of these managers and rated 5 stars by Morningstar analysts typically presents what I think is a very compelling investment opportunity. And even better, I've created a model portfolio based on some of these stock picks, which has outperformed its S&P 500 benchmark since its inception in September 2006. (Please stay tuned for a performance update in the coming weeks, where I'll weigh in on the portfolio's performance through Sept. 30, 2007).
Justin Fuller has a position in the following securities mentioned above: C, HD. Find out about Morningstar’s editorial policies.
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