Below find our current holdings, really. The first three form our large positions. Quite clearly we position for growth. We are investors–18 months or greater. All dividends are reinvested. Our average time horizon is 19 years. Our holdings include 7 positions plus cash.
Amazon remains the epic growth stock of the age. Founder/CEO Jeff Bezos is doing what the Soviets couldn’t. AMZN is taking over the world, but in such a way that they become integral to non-retail industries. Amazon doesn’t want every industry. They want to sell goods and services to every industry. “Look regulators–no monopoly.” Forget the P/E on AMZN. Buy on a 3%-8% pull-back, if not bad company news. Amazon passes on a lot of conference call questions. Read our full report on Amazon “That Smiley Amazon Sow.” In our Archives, Main Menu.
2. Alphabet–GOOG, GOOGL
The EU’s $2.7b. anti-trust fine is the cost of doing business for Alphabet. That issue irons out over time. They have $90b. and own 90% of EU search. No competitor stands in position to threaten Alphabet. Love this oligopoly search/advertising juggernaut, and mother of Waymo. Who knows what else co-founders Page and Brin may cook up in that backyard they call Other Bets? Read our full report on Alphabet “Google–what are they up to in there?” In our “Featured Content,” located at the bottom of every single article.
Facebook remains a phenom. FB owns mobile connectedness. FB monetized mobile. They draw top talent. They will own mobile video messaging and chat, maybe VR. Good conference calls–a little promotional. Really like Sheryl Sandberg. Love or hate him, Mark Zuckerberg is brilliant and killing it–takin’ a party year off from Harvard.
Activision is the model for the E game industry. Enduring engagement is their mantra, and they pioneered the path. It works. All follow ATVI’s model now, and they’re getting better at it. Yet, heard of e-sports, or World of Warcraft, Call of Duty, Overwatch? TTWo and EA are also great “3rd party publishers.”
5. Lockheed Martin–LMT
You want this–but you want it cheap? Really?
LMT 2016–37% of revenue came from government contracts for which LMT was the sole bidder. That’s like being spotted 37 points. CEO Marillyn Hewson is leading LMT toward greater strength. Conference calls are super clear, direct, non-promotional, and efficient. LMT, a stable 5%-8% grower with a low .61 beta(volatility), and a 2.61% annual dividend yield–at current share price $277.61. Trump? He likes both defense and Lockheed Martin. Look inside with our 4th of July report on Lockheed Martin, “Lockheed in Trump Land.”
6. United Health Group–UNH
United Health is best in class health care management, and pharmacy benefits manager(pbm). Love or hate such companies, UNH has displayed adaptability in a rapidly shifting marketplace. They probably have some of your money. Why not get some back?
Netflix continues to lead the world in streaming video on demand–SVOD. With founder Reed Hastings driving Netflix has become a household name and gone world-wide. NFLX’s data ball leads the industry–way. Read our extensive coverage of NFLX in “Pirates of Coax. Cannon Fire.” Flashing global last year, Netflix is building internet coverage and speeds in places such as Sao Palo, Brazil. Build it and we’ll beam it. Now here’s your new credit card so you can subscribe. Changes to net neutrality may undercut the NFLX thesis. That possibility is big. We’re staying, for now. Great conference calls. Clear, direct, and non-promotional.
U.S. Dollars. Preferred range 10%-40%. Cash held outside IRAs held in CDs. It counts and it’s good drill. We do not hedge or use FX markets.
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