In Dec. 2011, I attempted to help out family and friends by creating what I considered an ideal growth portfolio.
If, during 2012, you had invested in the S&P 500, your investment would have returned 15.9%, after factoring in dividends. That’s actually outstanding. And yet, had you been invested in the “World’s Greatest Growth Portfolio,” you would have trounced the S&P 500, earning a 26.5% return on your investment.
Before 2013 began, I decided to review all of the companies to see which ones still made the cut and which didn’t. Since inception, if you had invested $10,000 in this portfolio, it would now be worth $12,800 — or $200 more than if it had been invested in the S&P 500.
Each month, I check over all 13 stocks in this portfolio and pick three that are particularly intriguing. That’s why I call them “Buy Now” stocks. Read below to see what those three stocks are, and at the end, I’ll offer up access to a special premium report on one portfolio stock that’s taken a beating lately.
| Core | ||||
|---|---|---|---|---|
| Company | Allocation | Jan. 1st balance | Current balance | Change |
| Baidu (NASDAQ:BIDU) | 11.5% | $115.00 | $100.63 | -12.5% |
| 11.5% | $115.00 | $129.03 | 12.2% | |
| Amazon.com | 11.5% | $115.00 | $122.13 | 6.2% |
| Whole Foods | 11.5% | $115.00 | $109.71 | -4.6% |
| Tier One | ||||
| Starbucks | 7.5% | $75.25 | $80.14 | 6.5% |
| Apple | 7.5% | $75.25 | $62.98 | -16.3% |
| Intuitive Surgical | 7.5% | $75.25 | $75.33 | 0.1% |
| IPG Photonics | 7.5% | $75.25 | $75.02 | -0.3% |
| Tier Two | ||||
| 3D Systems (NYSE:DDD) | 5% | $50.00 | $45.35 | -9.3% |
| LinkedIn (NYSE:LNKD) | 5% | $50.00 | $76.65 | 53.3% |
| Stratasys | 5% | $50.00 | $46.35 | -7.3% |
| Westport Innovations | 5% | $50.00 | $55.25 | 10.5% |
| lululemon athletica | 5% | $50.00 | $40.90 | -18.2% |
| Year to Date | $1,000.00 | $1,019.47 | 1.2% | |
Source: Fool.com.
LinkedIn Corp (NYSE:LNKD)
I figured I would start out with the one that would leave readers scratching their heads. LinkedIn Corp (NYSE:LNKD) currently sells for 900 times earnings, and its stock has appreciated 175% since the beginning of 2012. Surely, this stock is due for a serious pullback, right?
Well, in the short term, it’s quite possible. And to be honest, that pullback could be significant. Then again, trying to predict short-term movements is a losing battle, and I think the long-term path of this company looks great.
Contrary to popular opinion, LinkedIn Corp (NYSE:LNKD) only makes a slice of its money from advertising. Instead, it caters more toward individuals looking to get a job and companies looking for qualified employees. If it were to reach the height of its potential, LinkedIn Corp (NYSE:LNKD) could completely rewrite the human resources division of large and small businesses alike.
And the company’s recent past shows that its model is catching on.
Source: LinkedIn. All numbers in millions. Talent Solutions comes from companies, Premium Subscriptions from individuals, and Market Solutions from advertisers.
