Sunday, January 10, 2016

" My 2016 picks with a new twist. How to build a small portfolio with 3 stocks, since the purpose of this blog is to assist novice investors to get started. A growth stock, a value stock and a steady Eddie stock."

Dow Jones Industrial Average 16,346 (Way, Way, Down) Week ending 01-08-2016

The purpose of this blog is to help people get started in the stock market who may for whatever reason have a fear of it or that just lack good information about it.

So this year I am giving picks that will allow someone to start a small portfolio starting with $5000 to $10,000. It can be built with 3 stocks from my list using 1 Growth, 1 Value, and 1 Steady Eddie stock.  Now I am not a stock broker, so when you finally make your picks that you want to use, you should run it by a licensed broker to get their opinion for your particular financial situation. This is only to give you an idea guideline on how to get started. (This is just in case you don't win the $1.3 Billion Powerball Lottery here in the USA this week.)

 2016 Growth Stock Picks:

Popeye's Louisiana Kitchen Inc. (Symbol PLKI)

Snap-On Inc. (Symbol SNA)

MobileEye N.V. (Symbol MBLY)

Celgene Corp. (Symbol CELG)

Boston Beer Company Cl. A (Symbol SAM)

Sketchers USA Inc. CL. A (Symbol SKX)

American Woodmark Corp.(Symbol AMWD)

2016 Value Stock Picks:

Apple Inc. (Symbol AAPL)

Time Warner Inc. (Symbol TWX)

Twitter Inc. (Symbol TWTR)

Oshkosh Corp. (Symbol OSK)

Teekay Corp. (Symbol TK)

Iconix Brand Group Inc. (ICON)

2016 Steady Eddie stocks:

Visa Inc. Cl. A. (Symbol V)

General Electric Corp. (Symbol GE)

Johnson & Johnson ( Symbol JNJ)

So here is an example of  a small portfolio:

Buy some shares of  Sketchers (SKX) for growth, Time Warner (TWX) for Value, and Johnson and Johnson for your steady Eddie stock. This would be a good way for someone to start out. 

I have been over past years a "Growth at a Reasonable Price or GARP" investor but in the past few months because of the changing market conditions and the change in the view of the Federal Reserves to now raise interest rates, I have more of a lean to the thinking of Value Investing in stocks or to combine the two styles in my screening of stocks. 

My investing tenets had traditionally been PEG Ratio under 1.5 and Return of Equity of 15 or higher for my GARP strategy.

I have added Price to Book Value of under 2 , (and preferably below book value if possible), and a Price to Cash flow of under 10 which seems to be a sweet spot. I may refine this as the year goes on to get a larger pool of quality prospect stocks.

I personally own 11 of these listed stocks for full disclosure. I am shopping on the others for best prices.

So there you have it. Good luck with your investing in 2016 and remember it does not hurt to have 10% of your money in Cash at all times so that you can take advantages of buying opportunities.

Thank you for reading. We will learn and prosper together. 

Please leave comments and let me know what you think or contact me with questions or comments on Twitter. My main ideas will all still remain on this blog.

I have joined the modern age and now have a Twitter Account.

Freewilly    Find me also on Twitter at:  @freewilly555


  1. I love this site. I met a guy who used to work with you 2-3 years ago during a NFL football party. I've been following ever since- great blog. I know you're pro-apple still- hopefully we can see another entry point around 85?

    1. Thank you Ward. This was my 269th blog amazingly. In these treacherous trading markets, people need to remember that they are investing for the long term and always should be looking for good buys in the market. I love Apple's Eco-system and all the things that it connects to now and in the future (Auto, Home, Health). It is a Value stock now and not a Growth stock, so it may play a different role in your stock portfolio. Thanks Freewilly