Kerry,
I like your approach. I'll try to express mine.
1) I have a core 25 (approximately) blue-chip growth stocks that I do not sell, and reinvest all dividends. These stocks include all industries (i.e., GE, TYC, ORCL, SUNW, ORCL, etc.). The vast majority I try to require a minimum of 15% growth rate. I do have a couple (i.e., Exxon) that I own just so that I force myself to keep abreast of all industries. (This allows me to recognize how the oil prices will effect other industries. Owning "c" allows me to recognize how interest rates are effecting the financials.) I will sell a stock if Value Line addresses major changes with the company (i.e., if bankruptcy was looming, or if growth rates had drastically changed - otherwise these are long-term holds).
2)I put about 10-20% of my money into stocks that are temporarily undervalued (i.e., TYC a couple of months ago due to a David Tice report concerning their accounting report - yet Value Line was still optimistic on their future). I don't mind holding for a long-time to see the benefits of a management change, for example.
3) I put about 20-35% into Gorilla Game stocks, that meet excellent growth prospects as detailed in Value Line. (i.e., in a strong sector like semis). These stocks have advantages over the competition (i.e., Applied Materials in the semi-manufacturing). I will sell a little when valuations become way over done.
4) I monitor the following issues on all stocks, according to Value Line: balance sheet issues (debt/cash), growth rates, profit margins, insider selling, stock buybacks, anticipated growth rates, and general stock assessments.
5) I try to have money in the high growth stocks at a reasonable valuation (my entry point). I try to envision trends, sectors, and growth rates based upon research. For example, EMC & NTAP are in a dynamic industry - which should continue for the foreseeable future.
6) So, Kerry, after I have typed this up you have made me realize that I don't have a strategy! I do a little bit of everything. The main attributes are the following: a) minimize risk (by choosing appropriate entry points on high-growth stocks (for example, JDSU); b) maintain a healthy percentage of assets in steady growth blue-chips; c) monitor trends (Value Line is excellent at discussing industries that are peaking or declining), and overweight accordingly; d) preserve capital by taking s/t losses on more speculative purchases; and e) stay abreast of the major industries.
I'm going to look at your picks a little bit closer. I have difficulty knowing when a stock like Carnival is done going down (due to the effects of a slowing economy). I would have to monitor this type of a stock (like you are doing) very carefully - to know when the bulk of the downswing has been priced into the stock. A slowing economy, which is a given, will definately hurt these stocks. But the economy will surely recover - and these stocks will recover.
I really like your strategy and look forward to discussing your strategy in the future. I think it reduceds the risk, and offers good returns by investing in quality names which are temporarily down in price.
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