I will try to select the best stocks picks for 2013.
Please note that my picks try to select reliable stocks with limited downside.
1) AIG: George Soros, and hundreds of hedge funds bets on this stock for the next year. Fundamentally very undervalued, the price is under the book value and the PE is very low. That's a real bargain.
2) MA: Impressive run up in 2012 (30%), Mastercard will probably outperform the market in the next year. Slower growth than Visa, but it trades with a much lower PE. A must have in any portfolio.
3) COP: After the split with PSX, this stock is not really appreciated by the market. It comes with a solid dividend yield, a very brilliant management and impressive cash flow. Warren Buffet likes it too.
4) AAPL: I'm not really an APPLE lover. But at this current levels (509$) this stock can't be ignored. At least 15-20% upside in the 2013, but the risk is more higher than in the previous stocks listed.
5) IBM: Another tech pick, it's not undervalued at current levels, but it offers a decent dividend with good growth prospects. In its industry and in its size category, IBM is slightly cheaper than other competitors, leading to a 11.6% discount versus peer. Ken Fisher and Buffet hold very large positions on this stocks.