Watchlist Update – Stocks to Own Screen

Great reads from two of my favorite blogs regarding Mutual Funds that actually hold cash during periods of high valuations:

• Jason Zweig – Cash is Now a Sin
• Mutual Fund Observer – May 1, 2016

With the cult of indexing in full control of the press after an 8 year bull market – if you are not fully 100% invested at all times – you are now considered a Heretic or worse, an idiot.

You should be reading from both of these sources on a Monthly basis – good stuff.

I know I am on strike regarding most stock picks – until the Market offers up some values – but I will continue to issue my basic Stocks to Own screen – since it does offers some solid ideas:

You may ask why I made the trade for GILD instead of AMGN? Simple – it was just too cheap to ignore – less than 7 P/E ratio.  I found GILD with an alternative screen I created – tweaking the Fair Value Uncertainty to Medium, but increasing the Stewardship Grade to Exemplary – making this a Warren Buffett type pick.

Click on the links to research further.

Results are based on the following screen:

1. Low fair value uncertainty.
2. Wide moat.
3. Morningstar rating 4 or more stars.
4. Financial Health Grade >= B.
5. Current P/E <= 20.