What's in Jenny's Portfolio?
Here's something you won't see too many advisors do: actually disclose the current holdings of their retirement portfolio to their clients. Disclosing the names of the stocks is one thing, but the dollar amounts, actual returns and portfolio weights I will not share for obvious reasons.
Portfolio construction is both a science and an art.
NOTE: all investing involves risk; this article is purely to give you a breakdown of the decisions I used to include stocks in my portfolio. These are NOT formal buy or sell recommendations, if you are interested in investing in these stocks I highly recommend you seek professional guidance.
My Best Stocks:
You'll notice a theme among all of these stocks - I consistently do business with most of these companies, and if I don't, it doesn't mean that I don't want to.
Whole Foods Market (WFM) - If you've read the news recently, you know that Whole Foods is set to be acquired by Amazon...which certainly wasn't on my mind when I bought it, but that was definitely an added perk. The funny thing is, the ratings from Wall Street analysts for WFM were terrible for months, despite the fact that a major hedge fund bought a huge chunk of shares not that long ago. I shop at Whole Foods whenever I can afford to, so frankly I feel it was well worth it to also buy the stock. A common theme you should always remember is not to believe everything the Street says about a company -- if you know what they do and you like the company, just buy it!
FedEx Corp. (FDX) - FedEx was actually the first stock that I was ever tasked with analyzing during my Wall Street career, so I know what a brilliant company it is already. Everyone gets irked at UPS and FedEx during the holidays, but their expansion and growth during the rest of the year is another story.
Walt Disney Co. (DIS) - You'll notice that I don't own any components of the Dow Jones Industrial Average, except for Disney. Owning a blue chip stock in the Dow is definitely recommended (for long-term security) but I'm also intrigued to see how Disney is now benefiting from everything with a "Star Wars" label, and will continue to do so for many years.
Chipotle Mexican Grill (CMG) - While it may be struggling for the time being, Chipotle is far from a disaster that is on the verge of bankruptcy. Believe me, I eat there multiple times per week and I often have to fight large crowds when I do. CMG is an example of one of those stocks that I will just buy and hold forever thanks to my love for the brand.
CubeSmart Inc. (CUBE) - REITs are tricky investments, especially since they thrive off of the volume of rental revenues. However, storage units are becoming increasingly popular as people keep buying stuff and not having anymore room for it. CubeSmart is one of the more recognizable names in this space.
Jetblue Airways (JBLU) - I've only flown Jetblue a handful of times, but I really do like the airline a lot. So much so that I invested in it twice. It is one of those airlines that has the potential to be bought by a larger airline or they could equally acquire another so this is a name I view as holding for the long-term.
Scotts Miracle Group (SMG) - While this one may be a struggle in the near-term, I do have a lot of faith in this one for years to come. The legalization of marijuana on a national level remains to be seen, but keep in mind that the Kennedy family became rich before prohibition was lifted...so having a foot in the door early is important.
Tesla Inc. (TSLA) - Technology investments are not really my strong suit, but this is one that I have liked forever. Elon Musk is a true visionary when it comes to futuristic travel, and his creation of the Model S is brilliant. It was a nice addition to the portfolio, outside the standard Apple and Google.
Charles Schwab Corp. (SCHW) - I needed to include a financials stock with my portfolio and thought that SCHW would be perfect since I have a checking account and 3 separate brokerage accounts with them. They're a great firm with which to do business and so this is definitely a hold-forever name.
Starbucks Corp. (SBUX) - Is this really a surprise? I have written plenty of pieces on SBUX and the importance of owning companies where you do business, so if I'm constantly getting Frappucinos in the summer and Pumpkin Spice Lattes in the fall, I had better get stock in Starbucks, which has been quite beneficial, especially after the stock split a couple years back.
Swift Transportation (SWFT) - Up until recently, this stock was a major loser but the announcement of a merger with Knight Transportation more than made up for the loss. Trucking is a tricky industry when the market conditions are shaky, and typically if market conditions are good, companies will pay more to ship items via rail or plane instead of by truck in order for them to get there faster.
My (Embarrassingly) Sad stocks:
Hey, you can't win them all, and for the time being these stocks have been beyond depressing in my portfolio. Fortunately, thanks to the magic of diversification, these terrible investing choices have not brought down the rest of my portfolio.
Twitter Inc. (TWTR) - I thought I timed the market correctly with TWTR by getting in at an advantageous transition period for the company. Unfortunately, that timing was terrible because the stock has since tanked and has shown no sign of bouncing back to its former highs. However, it is one of those social media stocks that we may have really underestimated (like Facebook) and I have a feeling in the next few years it will make a comeback.
JC Penney Co. (JCP) - I, like a lot of people, bought JCP stock a few years back when the company said it was on the verge of a major makeover and would be better equipped to compete with Macy's as a viable department store. Sad to say, it hasn't moved much beyond that initial price a bought it at...in fact, it's actually lost ground and I don't see much sign of it coming back.
Hi-Crush Partners LP (HCLP) - At the time that I bought this stock, the fracking situation was all the rage and it looked as though the US would be substantially oil-independent for many years. Then the Saudis came along and decided to flood the market with cheap oil and the US market took a major hit...including HCLP. Since then, my loss has been so bad that I had been informed by the company that I could sell for a tax loss.