The FarrCast : Wealth Strategies
Business:Investing
Every year, Michael picks his top ten. This year, there are bargains to be had after the markets have tumbled. What are the prospects in a market repricing environment?
Farr, Miller & Washington is a "buy-to-hold" investment manager, which means we make each investment with the intent to hold the position for a period of 3-5 years. Nevertheless, in each of the past thirteen Decembers I have selected and invested personally in ten of the stocks we follow with the intention of holding for just one year. These are companies that I find especially attractive in light of their valuations or their potential to benefit from economic developments. I hold an equal dollar amount in each of the positions for the following year, and then I reinvest in the new list.
This is my Top 10 for 2019, listed in no particular order. This year's Top Ten represent a nice combination of growth and defensiveness. Eight of the 11 S&P 500 industry sectors are represented, and their average long-term estimated growth rate (in EPS) is well in excess of the overall market. Also on average, these companies are much larger than the average S&P 500 company while carrying an average dividend yield of about 2%.
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