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No. of Recommendations: 4
First a little description of what I'm currently looking for in a company to own. I want to see double-digit ROE fairly consistently over the previous 10 years. Preferably something high teens or better, and increasing book value over time. I'd like to see a dividend yield around 3% or better and an earnings yield of better than 6%. The dividend is the least important of these to me, so a couple make the cut, despite a lower dividend. A lot of turnover this year.


Really nothing in the way of consumer picks. Tech and Oil, and a little bit of health-related. AFL & VALU provide a little diversification. Value line is the only one that's not a large-cap stock, and I don't have a lot of conviction in that one. The others should be okay over the long-term. I half considered making the last pick "cash" this year, because I fully expect some kind of correction. I also considered putting BRK on here somewhere, but left it off, because I don't really measure it the same way - it's become a hold forever stock for me from now on, I think.

Those are all stocks from among those I currently own. I hold about another 10 or so individual stocks that I'm not as in love with. I like to keep it to around 20 stocks +- 2. Just for kicks, here's a list of stocks I don't own, but are under consideration:


These are all candidate to replace other stocks in our portfolio, as they become too overvalued for my comfort. Of these, IBM & BASFY are perhaps the ones that most intrigue me, IBM because it has such a good track record over the last ten years (and a BRK holding) and BASFY, because it's an industry that I don't have much exposure to, outside of mutual fund holdings. EXC and LLY look to have declining earnings for the next year or so. COP strikes me as not quite as good a value as XOM & CVX, already in our portfolio.

Hoping to beat the S&P and get 10% returns or better in 2014.
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