It’s been almost 22 months since I introduced the World’s Greatest Retirement Portfolio to Foolish readers. This was, has been, and will continue to be my way of helping the world to invest better. Putting my money where my mouth is, I pledged to put at least $4,000 behind each stock and attempt to hold each one for at least three years — though I’ve already broken that promise.
Since I began, the market has returned 19.8%, which is pretty darn good by historical measures. Though this portfolio has been outperforming the market by double digits for well over a year now, it is currently ahead by just 5 percentage points.
Instead of panicking, I think it’s great that the “worst” relative performance of the portfolio is still outperforming the market. I look at this as an ideal time to buy shares while they’re down. Below, I’ll offer up three stocks that I think are excellent buys right now, and offer access to a premium report that offers deeper analysis than I can cover in one article.
|Company||Publication Date||Change||Vs. S&P 500|
|Google Inc (NASDAQ:GOOG)||6/26/11||65.9%||43%|
|Pricesmart, Inc. (NASDAQ:PSMT)||6/28/11||49.3%||28%|
|Baidu.com, Inc. (ADR) (NASDAQ:BIDU)*||9/15/12||(18%)||(37%)|
|Intuitive Surgical, Inc. (NASDAQ:ISRG)||7/25/11||27.1%||10%|
|National-Oilwell Varco, Inc. (NYSE:NOV)||7/28/11||(15.2%)||(36%)|
|The Coca-Cola Company (NYSE:KO)||6/21/11||21.8%||1%|
|Whole Foods Market, Inc. (NASDAQ:WFM)||7/5/11||38.5%||21%|
|Amazon.com, Inc. (NASDAQ:AMZN)||7/12/11||25.1%||6%|
|Apple Inc. (NASDAQ:AAPL)||6/30/11||33.4%||15%|
|Johnson & Johnson (NYSE:JNJ)||8/1/11||25.7%||4%|
The downswing in performance was helped by several factors this month. Just last Thursday, the FDA announced that it had opened an inquiry into the types of training doctors received for Intuitive Surgical‘s da Vinci Robot surgical system, and which procedures were most appropriate for the use of the system. I’m not too worried for now, and will be waiting to see what the FDA reports.
On top of that, Whole Foods Market, Inc. took a fairly steep dive when its outlook foretold margin compression that would cramp earnings. More on how I feel about that below.
This month’s 3 best buys
As promised, more on Whole Foods Market, Inc. (NASDAQ:WFM): The company is one of my three best buys for this month. Here are the bare bones of my reasoning. Last year, there was a confluence of factors — including crop yields, delivery schedules, and general climate conditions — that allowed Whole Foods to clock in net margins of 4.40% and 4.28% in the second and third quarters, respectively.
Management warned then that these margins — very high for the grocery industry — wouldn’t be sustainable. Apparently, that was lost on some analysts, as the stock took a dive when Whole Foods reiterated the point in the most recent earnings call. On the whole, the company continues to execute, and still has roughly 650 stores to open to reach its intended market. I think the company is a buy.