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Investing Specialists

Top 10 Purchases and Sales from Our Ultimate Stock-Pickers

A group of top managers remains cautious and commits more capital to traditional defensive sectors, while taking advantage of a rising (and potentially overvalued) market to book some gains.

Mentioned: , , , , , , , , ,

By Greggory Warren, CFA | Senior Stock Analyst

The rally in U.S. markets over the past five-plus years has not only led to a more than 150% increase in the value of the S&P 500 TR Index (from the depths of its lows during the first week of March 2009). It also has left many of our Ultimate Stock-Pickers bereft of ideas about where to put new money to work. As we noted in our last article, the first quarter (and early second quarter) of 2014 was one of the weakest buying environments we have seen since we relaunched the Ultimate Stock-Pickers concept in April 2009. The trend toward fewer and fewer meaningful purchases by our top managers started midway through last year, with the buying activity we were seeing being much more notable for its breadth than for its level of conviction. With many of our managers taking advantage of the run-up in the markets to trim or exit positions that they think have become fully valued, some have opted to funnel the cash back into names that were already held in their portfolios (especially where there is a perceived relative discount to the market).

The Morningstar Ultimate Stock-Pickers Team has a position in the following securities mentioned above: CL, C, GIS, PG. Find out about Morningstar’s editorial policies.