Thursday, July 20, 2017

The 100 Best Stocks to Buy In 2017

The 100 Best Stocks to Buy in 2017 is part of an annual series written by Peter Sander. The title is a tad on the promotional side, but I've read such incredible books with promotional titles (e.g. this gem) that I've learned not to judge.

The first few pages describe the authors' methodology, which in my view boils down to looking for companies that have consistently raised dividends (plus Amazon, which they shoe-horned into their portfolio despite the lack of dividends, because everybody has to own Amazon right now). This will lead one to buy a lot of great companies, because it is often companies with strong moats that are able to raise dividends. Unfortunately, if one doesn't know what he's doing, one can also get caught buying cyclicals with this strategy, and sure enough exposure to energy and mining companies have hurt the returns of this franchise.

Unfortunately for me, with asset prices where they are at, pretty much all of the companies they talk about are out of my league. I was more interested in the names of their poor performers from last year's edition, along with the ones they discarded (to make room for Bezos and his new guns), but even then I couldn't find anything I liked.

However, there is a good-sized write-up for each of 100 companies with moat-like potential, so the book can serve as an excellent reference when if there is ever another market correction. I see that the 2018 version is already out though, so if this is your cup of tea get that one instead.

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