Monsanto Company (MON) & Vinik Asset’s Top Five

In the last four years ended 2012, Starwood earned $1 billion in cash through the sale of owned assets and looks to generate around $3 billion in hotel sales by 2016. The real tailwinds include a stabilizing European economy and improvements in China (see if Starwood is hot for a reason).

Vinik is a sector investor and it appears he’s betting on a rebounding economy. This includes its top bet on Monsanto Company (NYSE:MON), its largest stock holding. I am encouraged by the company’s prospects based on rising incomes in developing nations and an increase in populations worldwide.

I also think Lennar Corporation (NYSE:LEN) should continue to see upside in the housing market, as a rising tide (rebounding housing) lifts all boats (home-builders). However, I slightly disagree with Vinik’s third-largest stock pick, Barrick. Given the impending rebound in the economy, gold prices could see further downside. I am also cautious on Best Buy Co., Inc. (NYSE:BBY)’s turnaround efforts, but like Starwood’s prospects given its geographical exposure.

Marshall Hargrave has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.