Staff
Favorites
(Leaving
aside the increased
value
of the portfolio (which
reached a high of $584,000!)
the fact is that a
$100,000
investment to create
it 20 years ago is
now
providing $20,916 of
annual income. We anticipate
that it could be throwing
off more than $100,000
by age 65--for
our investor who was
30 years of age when
he established
the portfolio. )
For
this month’s portfolio,
we surveyed our staff
of stock experts (Bob
Briechle, Mike Burke,
Pete Cirocco, Dave Fish,
and Pat Racaniello) and
asked for their favorite
long-term picks right
now. No one was allowed
to peek at anyone else’s
list. Their resulting
choices produced an array
of strong, high-quality
issues with long histories
of rewarding their shareholders,
firms that possess hefty
market shares for their
goods and/or services,
and companies that possess
the financial muscle to
ride out most economic
cycles.
One
such
pick
is
Illinois
Tool
Works,
chosen
by
both
Bob
Briechle
and
Pat
Racaniello.
ITW
has
successfully
grown
through
strategic
acquisitions,
adding
roughly
40-50
companies
per
year,
which
in
turn
has
increased
annual
sales.
Both
earnings
and
dividends
have
been
doubling
about
every
5-6
years,
and
ITW
has
had
only
one
year
(2001)
since
1991
when
earnings
did
not
top
the
previous
year.
These
results
are
a
sure
sign
of
competent
management
and
business
planning.
Another
high-quality
issue
is
Pfizer,
which
was
chosen
by
both
Pete
Cirocco
and
Mike
Burke.
Pete
likes
its
high
yield
(over
6%),
low
price/earnings
ratio
(17),
and
low
market
price
($21).
Mike
says, “Pfizer
was
around
$50
several
years
ago,
when
Viagra
came
on
the
market
and
the
stock
had
moved
up
strongly
in
anticipation
of
that
event.
Now
the
stock
is
at
$21,
pays
a
way
above-average
dividend
yield,
is
in
the
depressed
drug
group,
and
has
gotten
unpopular
with
investors.
It
could
well
move
back
to
the
$50
area
for
a
significant
percentage
gain.”
One
of Dave Fish’s
picks is also trading near
to its 52-week low than
its corresponding high.
Dividends have been paid
since 1976 and the stock
has had 10-year annual earnings
and dividend growth of about
9%, which may increase over
the next several years.
Dave says, “PNR
provides water treatment/purification
equipment, and is aggressively
expanding these operations
overseas.” As
an example, it has already
installed 80 water treatment
systems in India and plans
to boost that number by
50-60 systems per month
through the end of 2008.
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1-(800)-388-9993
