Ultimate Stock-Picker's Portfolio Eyeing Four Stocks
We update our watch list and discuss four stocks on our radar.
As we discussed in a recent article, the Ultimate Stock-Picker's Portfolio has recently made some subtle changes, including new additions to our investment manager roster. We've also refined our stock selection criteria, factoring in not only the number of managers holding a stock, but also their recent trading patterns and the size of their positions. In other words, we favor those stocks in which our Ultimate Stock-Pickers demonstrate more conviction. We continue to consider for investment only stocks rated 5 stars by Morningstar analysts, and we use our estimates of three-year expected returns as another deciding factor.
After poring over the holdings of our Ultimate Stock-Pickers and comparing them to Morningstar's list of 5-star stocks, we've compiled an updated watch list of 15 stocks. This is the main list we use to source new ideas for the Ultimate Stock-Picker's Portfolio. While many of the names remain the same (such as Microsoft (MSFT), General Electric (GE), eBay (EBAY), Comcast (CMCSA), Home Depot (HD), Pfizer (PFE), 3M (MMM), United Health (UNH), and Lowe's (LOW)), our updated watch list also includes several new companies, including Wells Fargo (WFC), ConocoPhillips (COP), WellPoint (WLP), Walt Disney (DIS), Sanofi-Aventis (SNY), and Costco Wholesale (COST).
|Ultimate Stock-Picker's Watch List|
|Wells Fargo (WFC)||10||0.59||Wide||Medium|
|General Electric (GE)||9||0.37||Wide||Medium|
|Home Depot (HD)||7||0.46||Wide||Medium|
|Well Point (WLP)||6||0.32||Narrow||Medium|
|3M Company (MMM)||6||0.63||Wide||Low|
|Walt Disney (DIS)||6||0.62||Wide||Low|
|United Health Group (UNH)||6||0.32||Narrow||Medium|
|Costco Wholesale (COST)||6||0.67||Narrow||Medium|
|* As of 11-21-08.|
John Owens has a position in the following securities mentioned above: COV, COF, MSFT. Find out about Morningstar’s editorial policies.