My strategy for investment in equities (because I have a day job and can't follow things the way I should) is to invest 2/3 in core and 1/3 in issues that catch my eye (valuation, earnings growth potential, market share). My core holdings include INTC, CSCO, MRK, PG, GE, and MCD (my kids love Mickey Dees). My other holdings include such things as MDCD, MADGF, AALR, PTEC, BOCI, AMAT, WFR, SQNT, good companies that have been beaten up and (IMHE) will improve significantly.
My portfolio won't jump 10% a day, but downside risk is low and avg PE very reasonable. Regarding valuation of INTC: It is in the same range (22-24) as GE, PG, MRK, and MCD, and (again, in my most Uriah Heepish estimation) is very reasonably valued; given their earnings outlook, it is probably undervalued.
Two themes that seem to be underplayed on the threads I follow:
International exposure/income; Agricultural tech companies (I am a country boy, but no Aggie). Does anyone follow CAG, MTC? They are poised to rule ag tech in the coming decade but are very richly valued; I hope to buy on their next pullback.
Regards and good investing to all
Jeff |
