Review of 2021 and Picks for 2022

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My 2021 picks for the Growth Fund did pretty well, didn’t they?  Fortinet and Nvidia hit the ball out of the park!  But they were balanced out on the downside by BABA, OLLI and VIPS.  The fund would have down so much better without the losers, but hey, I still beat the S&P.  And I did advise taking profits in BABA and VIPS when they were up substantially.  OLLI never did get any traction, did it?  For 2022, I hope to do better (no Chinese stocks for me!), so here are my stocks in order of preference (some are carry overs from last year):

  1. KLA Corp (KLAC)
  2. Lam Research Corp (LRCX)
  3. Fortinet Corp (FTNT)
  4. Applied Materials (AMAT)
  5. NVIDIA Corp (NVDA)
  6. KKR & Co., Inc. (KKR)
  7. Kulicke & Soffa Industries, Inc. (KLIC)
  8. Netflix, Inc. (NFLX)
  9. Nexstar Media Group (NXST)
  10. Lululemon Athletica, Inc. (LULU)
  11. Adobe, Inc. (ADBE)
  12. Meta Platforms, Inc. (FB)
  13. Five Below, Inc. (FIVE)
  14. Intuit, Inc. (INTU)
  15. Floor & Decor Holdings, Inc. (FND)
  16. Amazon (AMZN)
  17. Ares Management Corp. (ARES)
  18. Paypal Holdings, Inc. (PYPL)
  19. Paycom Software, Inc. (PAYC)
  20. Arista Networks, Inc. (ANET)

All of the above stocks meet my scan criteria:  Revenue growth rate last 5 years > 15%, EPS Growth History Last 5 years > 15%, Return on Equity > 15% and Estimated EPS Growth Long Term > 15%.  They are listed in ROE order, which, in my experience, has been the most significant variable.

 

As for the income fund, it performed on par with the S&P (before dividends), so it beat the S&P as well.   For this year, I am revising the holdings to include the following:

  1. Exxon Mobil (XOM)
  2. Phillip Morris International (PM)
  3. Iron Mountain Inc. (IRM)
  4. National Retail Properties (NNN)
  5. Abbvie Inc (ABBV)
  6. First Energy (FE)
  7. First Horizon (FHN)
  8. Merck & Co, Inc. (MRK)
  9. Patterson Companies, Inc. (PDCO)
  10. Amgen, Inc. (AMGN)
  11. EOG Resources, Inc. (EOG)
  12. Viatris, Inc. (VTRS)
  13. Regions Financial (RF)
  14. MetLife, Inc. (MET)
  15. Prudential (PRU)
  16. Citizens Financial (CFG)
  17. OGE Energy (OGE)
  18. Dow, Inc. (DOW)
  19. Lockheed Martin (LMT)
  20. JPMorgan Equity Premium Income ETF (JEPI)

All of the above stocks and the ETF pay at least 3%.  And the JEPI ETF currently pays over 7% monthly to provide balanced income since the stocks only pay quarterly.

 

Well that is above it for now.  Please contact me if you have comments or questions.

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