In January 2012, I identified 13 stocks that would comprise an ideal growth portfolio. Since then, investors following along with me have turned $10,000 into $13,930 -- a 39.3% increase, and $1,280 -- or 12.8 percentage points -- better than if they had just invested the money in the S&P 500.
Every month, I look over these stocks to see which three are tempting. I call these my "Buy Now" stocks because I think they're pretty good deals. Read the chart below to see how the whole portfolio has performed, check out my best buys and, at the end, I'll offer up access to a special premium report on one of the 13 stocks included.
| Core | ||||
| Baidu | 11.5% | $115.00 | $102.35 | (11%) |
| | 11.5% | $115.00 | $144.10 | 25.3% |
| Amazon.com | 11.5% | $115.00 | $130.18 | 13.2% |
| Whole Foods | 11.5% | $115.00 | $133.75 | 16.3% |
| Tier One | ||||
| Starbucks | 7.5% | $75.25 | $94.44 | 25.5% |
| Apple | 7.5% | $75.25 | $59.52 | (20.9%) |
| Intuitive Surgical | 7.5% | $75.25 | $76.68 | 1.9% |
| IPG Photonics | 7.5% | $75.25 | $67.05 | (10.9%) |
| Tier Two | ||||
| 3D Systems (NYSE: DDD) | 5% | $50.00 | $63.45 | 26.9% |
| LinkedIn (NYSE: LNKD) | 5% | $50.00 | $81.95 | 63.9% |
| Stratasys (NASDAQ: SSYS) | 5% | $50.00 | $52.60 | 5.2% |
| Westport Innovations | 5% | $50.00 | $60.10 | 20.2% |
| lululemon athletica (NASDAQ: LULU) | 5% | $50.00 | $42.30 | (15.4%) |
|
| ||||
| Year-to-date | $1,000.00 | $1,108.46 | 10.8% | |
| Returns Since Inception | 39.3% | |||
Source: YCharts. All numbers accurate as of market open, July 5, 2013. Dividends not included, as this is a growth portfolio focused on capital appreciation.
Stratasys
First on my list of "buy now" stocks is one half of the duopoly in 3-D printing, with 3D Systems -- another company in this portfolio -- representing the other half. In truth, there are many other smaller players in the field as well, but they are slowly being bought out by the Big Two.
Case in point: Earlier this year, Stratasys merged with Isreali-based Objet. The new company solidified Stratasys' leading position in making 3-D printers for use by industrial customers. While I liked that move, I think the company's most recent purchase of consumer-facing Makerbot is even more interesting.
3D Systems and its CubeX printer have dominated the consumer printing market, but combining Makerbot's Replicator with Stratasys' financial backing could mean that things are going to start to heat up in this industry.
Although Stratasys shares are pretty expensive right now, I see its market cap easily doubling (or more) in the next decade if it can keep up the positive momentum.
lululemon athletica
This retailer, which got its start by offering yoga-wear to athletic-minded women but has now branched out, had a recent earnings report that by most measures was solid. Why, then, did it drop so harshly?
Because CEO Christine Day, who has led the company during an impressive growth spurt over the past five years, announced that she will resign when a replacement is found.
I'm a big fan of Christine Day, and think her loss is important for investors to take note of. However, given the stock's 20% sell-off, I think much of the risk associated with Day leaving has already been priced in. What we're left with is a company that has a great brand and a solid growth story. With Day likely having a hand in finding her replacement, I think Lulu's shares are worth looking into right now.
LinkedIn
While there isn't necessarily any new news to add to LinkedIn's story, I think it has the potential to be one of the great growth stories of the 21st century. The company has three revenue streams -- one based on helping companies fill openings, one based on helping individuals find jobs, and one based on advertising -- that are all growing by more than 50% per year.
At its highest potential, LinkedIn could disrupt the HR departments at companies worldwide, allowing for cheaper, more efficient, and streamlined recruiting. While I think the price point earlier this month of about $160 per share was more tempting, I fully plan on adding small portions of LinkedIn to my Roth IRA as the company's story continues to unfold.
One that was left off ...
One company left off the list that I still like is Apple. The company has a history of cranking out revolutionary products ... and then creatively destroying them with something better. Read about the future of Apple in the free report, "Apple Will Destroy Its Greatest Product." Can Apple really disrupt its own iPhones and iPads? Find out by clicking here.
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