The 2017 Buy List

Here are the 25 stocks for the 2017 Buy List. It’s locked and sealed and I can’t make any changes for 12 months.

For tracking purposes, I assume the Buy List is a $1 million portfolio that’s equally divided among 25 stocks. Below are all 25 positions with the amount of shares for each and the closing price for 2016. Whenever I discuss how the Buy List is doing, the list below is what I’m referring to.

Company Ticker Price Shares Balance
AFLAC AFL $69.60 574.7126 $40,000
Alliance Data Systems ADS $228.50 175.0547 $40,000
Axalta Coating Systems AXTA $27.20 1,470.5882 $40,000
Cerner CERN $47.37 844.4163 $40,000
Cinemark CNK $38.36 1,042.7529 $40,000
Continental Building Products CBPX $23.10 1,731.6017 $40,000
Cognizant Technology Solutions CTSH $56.03 713.9033 $40,000
CR Bard BCR $224.66 178.0468 $40,000
Danaher DHR $77.84 513.8746 $40,000
Express Scripts ESRX $68.79 581.4799 $40,000
Fiserv FISV $106.28 376.3643 $40,000
HEICO Corporation HEI $77.15 518.4705 $40,000
Hormel Foods HRL $34.81 1,149.0951 $40,000
Ingredion INGR $124.96 320.1024 $40,000
Intercontinental Exchange ICE $56.42 708.9685 $40,000
Microsoft MSFT $62.14 643.7078 $40,000
Moody’s MCO $94.27 424.3131 $40,000
Ross Stores ROST $65.60 609.7561 $40,000
RPM International RPM $53.83 743.0801 $40,000
Sherwin-Williams SHW $268.74 148.8427 $40,000
Signature Bank SBNY $150.20 266.3116 $40,000
JM Smucker SJM $128.06 312.3536 $40,000
Snap-on SNA $171.27 233.5494 $40,000
Stryker SYK $119.81 333.8619 $40,000
Wabtec WAB $83.02 481.8116 $40,000
Total $1,000,000

The ten new stocks are Axalta Coating Systems, Cinemark, Continental Building Products, Danaher, Ingredion, Intercontinental Exchange, Moody’s, RPM International, Sherwin-Williams and JM Smucker.

The five deletions are Bed Bath & Beyond, Biogen, Ford, Stericycle and Wells Fargo.

The 25 stocks range from a market cap of $483 billion for Microsoft to $924 million for Continental Building Products. The average market cap is $38 billion, but that’s heavily distorted by Microsoft. Take out MSFT and the average market cap is just under $20 billion. Fourteen of the 25 stocks fall between $4 billion and $20 billion in market value.

Eighteen of the 25 stocks pay dividends. Currently, the Buy List has a yield of 1.48%.

Only AFLAC and Fiserv have been on the Buy List all 12 years. This is Stryker’s 10th year. Danaher is returning to the Buy List after a seven-year absence.

Here’s a brief look at the ten new stocks.

Axalta Coating Systems (AXTA) is a Philadelphia-based coatings company. The stock had its IPO two years ago. It was previously owned by The Carlyle Group.

Cinemark Holdings (CNK) runs a chain of movie theaters in the United States, Taiwan and South America.

Continental Building Products (CBPX) is a “leading manufacturer of gypsum wallboard, joint compound and complementary finishing products.”

Danaher (DHR) is a diversified manufacturer. The stock has been an amazing long-term winner.

Ingredion (INGR) calls itself “a global ingredient-solutions company.” They turn plants into ingredients for food.

Intercontinental Exchange (ICE) runs several exchanges, including the New York Stock Exchange.

Moody’s (MCO) is a credit-rating agency. They also own Moody’s Analytics.

RPM International (RPM) makes building materials and adhesives. The company has increased its dividend for 43 consecutive years.

Sherwin-Williams (SHW) is mostly known for its line of paint. The company recently bought Valspar for $9 billion.

JM Smucker (SJM) makes a lot more than jelly. The company makes a broad line of food products. Of course, with a name like Smucker’s, it has to be good.

Posted by on December 31st, 2016 at 6:33 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.