At the beginning of 2012, I decided the most honest and effective way to help the world invest better was to publicly show how I go about making decisions for a public portfolio aimed at growth companies. The intent is to hold each company for at least a year, and recalibrate only with each new year.
Since then, an investment of $50,000 would have grown to $69,650 — or $5,200 more than if it had just been invested in an SPDR S&P 500 ETF. Read on to see why the portfolio is doing so well, and how you can find out which of these 13 stocks are great buys right now.
Core
| Company | Allocation | Jan. 1 Balance | Current Balance | Change |
|---|---|---|---|---|
| Baidu.com, Inc. (ADR) (NASDAQ:BIDU) | 11.5% | $115.00 | $111.21 | (3.3%) |
| Google Inc (NASDAQ:GOOG) | 11.5% | $115.00 | $141.91 | 23.4% |
| Amazon.com, Inc. (NASDAQ:AMZN) | 11.5% | $115.00 | $123.97 | 7.8% |
| Whole Foods Market, Inc. (NASDAQ:WFM) | 11.5% | $115.00 | $131.68 | 14.5% |
Tier One
| Company | Allocation | Jan. 1 Balance | Current Balance | Change |
|---|---|---|---|---|
| Starbucks Corporation (NASDAQ:SBUX) | 7.5% | $75.25 | $88.95 | 18.2% |
| Apple Inc. (NASDAQ:AAPL) | 7.5% | $75.25 | $63.89 | (15.1%) |
| Intuitive Surgical, Inc. (NASDAQ:ISRG) | 7.5% | $75.25 | $76.88 | 1.9% |
| IPG Photonics Corporation (NASDAQ:IPGP) | 7.5% | $75.25 | $66.90 | (11.1%) |
Tier Two
| Company | Allocation | Jan. 1 Balance | Current Balance | Change |
|---|---|---|---|---|
| 3D Systems Corporation (NYSE:DDD) | 5% | $50.00 | $68.35 | 36.7% |
| LinkedIn Corp (NYSE:LNKD) | 5% | $50.00 | $73.55 | 47.1% |
| Stratasys, Ltd. (NASDAQ:SSYS) | 5% | $50.00 | $52.70 | 5.4% |
| Westport Innovations Inc. (USA) (NASDAQ:WPRT) | 5% | $50.00 | $56.80 | 13.6% |
| Lululemon Athletica inc. (NASDAQ:LULU) | 5% | $50.00 | $51.40 | 2.8% |
| Jan. 1 Balance | Current Balance | Change | |
|---|---|---|---|
| Year-to-Date | $1,000.00 | $1,107.97 | 10.8% |
| Returns Since Inception | 39.3% |
Source: YCharts. Because this portfolio is focused on capital appreciation, dividends are not accounted for in either individual stock or market returns.
Three big movers
Of the 13 stocks included in the portfolio, three made notable moves in May. The first of those companies was 3D Systems Corporation (NYSE:DDD), which is up 29% from one month ago. Shares of all 3-D printing companies are especially volatile, as they come from an untested market that holds great potential for the future of manufacturing.
That’s why positive earnings from 3D Systems at the beginning of May, combined with likewise news from fellow 3-D printer Stratasys, helped boost the entire industry throughout the month.
Second on the list of big movers was Chinese search engine Baidu.com, Inc. (ADR) (NASDAQ:BIDU), whose stock is up more than 14% over the past month. Though the company didn’t come out with any big news itself, it was the earnings release from rival Qihoo 360 Technology Co Ltd (NYSE:QIHU) that caught Wall Street’s eye. Though Qihoo continued to gain search market share — now at 15% in China — it was clear from weak advertising revenue that Baidu.com, Inc. (ADR) (NASDAQ:BIDU) has a serious upper hand when it comes to pricing power with its advertisements.
Finally, Whole Foods Market, Inc. (NASDAQ:WFM) gave shareholders lots of good news to snack on, as shares are up 17% over the past month. Previously, investors were worried that the company was lowering prices because other grocers were offering just as good a value on organic food.
But the latest earnings release showed that the lower prices weren’t hurting Whole Foods. In fact, this makes it increasingly harder for other grocers to turn a profit on organic food, and as organic food becomes more affordable, the market of potential customers widens.
