Stock pundits are quick to dish out stock recommendations -- but when it comes down to it, most don't even own the stocks they recommend. The Motley Fool recently published a list of 5 stocks that they recommend and own.
|Qualcomm Fast Facts|
|Market Capitalization:||$91.9 billion|
|Revenue (NYSE:TTM):||$13.8 billion|
|Earnings (TTM):||$4.1 billion|
Smartphones are everywhere, and there will undoubtedly be many long-term winners in the field. Qualcomm [Nasdaq: QCOM] is ideally positioned to be a leader in this market.
|Ultra Petroleum Fast Facts|
|Market Capitalization:||$7.2 billion|
|Industry:||Oil & Gas|
|Revenue (TTM):||$964 million|
|Earnings (TTM):||$331 million|
Ultra Petroleum [NYSE: UPL], a natural gas-focused exploration and production company that makes its living drilling in Wyoming's Green River Basin and Pennsylvania's Marcellus Shale
|Fiserv Fast Facts|
|Market Capitalization:||$8.7 billion|
|Revenue (TTM):||$4.2 billion|
|Earnings (TTM):||$450 million|
Fiserv [Nasdaq: FISV] performs account and check processing, credit and debit card services, electronic transfers and bill payment, and more.
|Annaly Capital Fast Facts|
|Market Capitalization:||$16.0 billion|
|Industry:||Real Estate Investment Trusts|
|Revenue (TTM):||$1.9 billion|
|Earnings (TTM):||$1.7 billion|
Annaly Capital [NYSE: NLY] uses short-term financing to buy longer-term mortgage-backed securities and other debt, largely issued by Fannie Mae and Freddie Mac.
|Altria Fast Facts|
|Market Capitalization:||$54.5 billion|
|Revenue (TTM):||$16.5 billion|
|Earnings (TTM):||$3.4 billion|
Altria [NYSE: MO] is the company behind Marlboro cigarettes, Copenhagen and Skoal smokeless tobacco, and quarter-owner of the beer behemoth SAB Miller.
This is a diversified selection of stocks and it will be interesting to compare this with our ETF benchmark of a balanced portfolio of Dividend producing ETFs.
|Asset||Fund in this portfolio|
|REAL ESTATE||ICF (iShares Cohen & Steers Realty Majors)|
|FIXED INCOME||TIP (iShares Barclays TIPS Bond)|
|Emerging Market||VWO (Vanguard Emerging Markets Stock ETF)|
|US EQUITY||DVY (iShares Dow Jones Select Dividend Index)|
|US EQUITY||VIG (Vanguard Dividend Appreciation ETF)|
|INTERNATIONAL EQUITY||IDV (iShares Dow Jones Intl Select Div Idx)|
|High Yield Bond||HYG (iShares iBoxx $ High Yield Corporate Bd)|
|INTERNATIONAL BONDS||EMB (iShares JPMorgan USD Emerg Markets Bond)|
- 5 Stocks The Motley Fool Owns -- Total of $10K invested equally in each stock
- Retirement Income ETFs Tactical Asset Allocation Moderate -- Above funds using TAA (40% fixed income, 30% for each of the top two asset classes)
- Retirement Income ETFs Strategic Asset Allocation Moderate -- Above funds using SAA (40% fixed income, 12% for each of the five asset classes -- funds selected based on price momentum)
|Portfolio/Fund Name||1Yr AR||1Yr Sharpe||3Yr AR||3Yr Sharpe||5Yr AR||5Yr Sharpe|
|Retirement Income ETFs Tactical Asset Allocation Moderate||-3%||-18%||9%||74%||8%||58%|
|Retirement Income ETFs Strategic Asset Allocation Moderate||-3%||-29%||11%||44%||2%||7%|
|5 Stocks The Motley Fool Owns||-9%||-38%||6%||16%||1%||-1%|
However, the stock selections appear on paper, their performance has not been that attractive. Having good dividends is going to keep you afloat but both the dividend ETF portfolio and some blue chip stocks will likely serve you better than this.
The more detailed analysis and graphs give you a visual view of the volatility.
This selection of equities had a very strong spike around 2008 and perhaps they will spike again. We will track this selection but this isn't something I would want to own.
Disclosure: MyPlanIQ does not have any business relationship with the company or companies mentioned in this article. It does not set up their retirement plans. The performance data of portfolios mentioned above are obtained through historical simulation and are hypothetical.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.