Update on My Watch List

I’m often asked how I go about picking stocks for my Buy List. The answer is really quite simple. I don’t have a magic formula and I hate stock screeners.

Instead, I have a Watch List of stocks that I try to follow. These are what I would call “really good companies.” They’re in the top tier of Corporate America. It’s taken me years to build up this list and I change it often.

The Watch List serves as the minor leagues for my Buy List. It’s from this list that almost all candidates for the Buy List come, and it’s where they return after they’ve been deleted.

Let me make it clear that I’m not recommending any of these stocks listed below. That’s what the Buy List is for. I just wanted to show you which stocks make the first cut in the process. Honestly, this list is too large and I should knock off around 30 names. If a stock is on this list, you can be pretty sure it’s a decent company (the price may not be).

My secret formula is nothing more than watching really good companies and making a move when the price looks good.

Company Symbol
Aaron’s AAN
Abbott Laboratories ABT
Advance Auto Parts AAP
Alliance Data Systems ADS
AmerisourceBergen ABC
Ametek AME
Ansys ANSS
AutoZone AZO
Balchem BCPC
Ball BLL
Baxter International BAX
Becton, Dickinson BDX
Biogen Idec BIIB
Carter’s CRI
Cerner CERN
CH Robinson Worldwide CHRW
Cheesecake Factory CAKE
Church & Dwight CHD
Clorox CLX
Coach COH
Coca-Cola KO
Colgate-Palmolive CL
Community Health Systems CYH
Concur Technologies CNQR
Cooper COO
Corrections of America CXW
Costco COST
Crane CR
Cummins CMI
CVS Caremark CVS
Danaher DHR
Darden Restaurants DRI
DaVita HealthCare Partners DVA
Deckers Outdoor DECK
Deluxe DLX
DENTSPLY International XRAY
Dick’s Sporting Goods DKS
Dolby Laboratories DLB
Donaldson Company DCI
Endo Health Solutions ENDP
Esterline Technologies ESL
Expeditors International of Washington EXPD
Express Scripts ESRX
Fair Isaac FICO
Fastenal Company FAST
FMC Technologies FTI
Foot Locker FL
Gardner Denver GDI
Gartner IT
General Dynamics GD
Gentex GNTX
Gilead Sciences GILD
Global Payments GPN
Graco GGG
Hasbro HAS
Henry Schein HSIC
HMS Holdings HMSY
Hologic HOLX
Hormel Foods HRL
Hospira HSP
Hubbell HUB-B
Humana HUM
IDEXX Laboratories IDXX
Informatica INFA
Infosys Ltd. INFY
Ingram Micro IM
Ingredion Incorporated INGR
Intel INTC
IntercontinentalExchange ICE
International Flavors & Fragrances IFF
Intuit INTU
Intuitive Surgical ISRG
Iron Mountain IRM
Jack Henry & Associates JKHY
Jarden JAH
JB Hunt Transport Services JBHT
John Wiley & Sons JW-A
Johnson & Johnson JNJ
Kansas City Southern KSU
Life Time Fitness LTM
McCormick MKC
McDonald’s MCD
Mettler-Toledo International MTD
Mylan MYL
NeuStar NSR
Nike NKE
Nordson NDSN
Panera Bread PNRA
Pentair Ltd. PNR
PetSmart PETM
Polaris Industries PII
Progressive PGR
Prosperity Bancshares PB
Quest Diagnostics DGX
Rackspace Hosting RAX
Raven Industries RAVN
Regal Beloit RBC
Reinsurance Group of America RGA
Rent-A-Center RCII
ResMed RMD
Reynolds American RAI
Riverbed Technology RVBD
Rollins ROL
Seaboard SEB
SEI Investments SEIC
Seneca Foods SENEA
Sensient Technologies SXT
Sigma-Aldrich SIAL
Signature Bank SBNY
Silgan Holdings SLGN
Snap-on SNA
SolarWinds SWI
St. Jude Medical STJ
Starbucks SBUX
State Street STT
Stericycle SRCL
Sysco SYY
Target TGT
Tech Data TECD
Teradata TDC
Thermo Fisher Scientific TMO
Thoratec THOR
Tiffany & TIF
TJX Companies TJX
Towers Watson & TW
Tractor Supply TSCO
Trimble Navigation Limited TRMB
Triumph Group TGI
Tupperware Brands TUP
U.S. Bancorp USB
Universal Health Services UHS
Varian Medical Systems VAR
VeriFone Systems PAY
Visa V
W.W. Grainger GWW
Wabtec WAB
Walgreen WAG
Waters WAT
WellPoint WLP
Wells Fargo WFC
Western Union WU
Weyco Group WEYS
World Fuel Services INT
Yum! Brands YUM
Zimmer Holdings ZMH

Posted by on February 27th, 2013 at 1:16 pm

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.