Top 25 Portfolio - One Page

I could not be happier with the Top 25 Model Portfolio as we head into 2025.

This last little correction has really hammered some of the tax loss selling candidates. Since about 2000, this has usually happened in September/October, but this year it happened post-election. Tax loss selling is always a risk to any value portfolio that buys stocks at new lows. We will often have a “negative momentum” tilt to the portfolio.

9 of the stocks have a 4%+ dividend yield. I am not really a “yield investor”, but those are the stocks that are cheap.

I think the move from 20 stocks, to 25 stocks, was justified. I finally looked at some ideas I had set aside, and several of them were very good.

Here are the things I am thinking about:

1. maybe I should have one more healthcare stock, maybe Smith & Nephew

2. maybe I should have one more defensive name like Sysco

3. maybe I should have another oil service name, maybe Atlas Energy

4. I have so many good consumer cyclicals ideas, maybe Hasbro, Polaris, Vail Resorts, or Oxford,

5. why not step to Dow with a safe 7% yield

6. does Kinder Morgan need to go?

7. do I have too much ag exposure, maybe Titan should go?

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Here is the Top 25 Model Portfolio ranked from best to worst:

1. Nexstar Media - local TV stations, 4% yield

2. RXO - truck brokerage

3. Nutrien - potash, nitrogen, and phosphate fertilizer, 5% yield

4. Red Rock Resorts - locals casinos in Las Vegas

5. Tyson Foods - beef, chicken, and pork

6. Darling - rendering + a weight loss supplement?

7. Halliburton - oil/gas drilling service

8. Corteva - seeds and pesticides

9. HF Sinclair - oil refining and marketing, 6% yield

10. Brunswick - large and small boats

11. Rayonier - REIT, timber and real estate, 6% yield

12. Alexandria Real Estate - REIT, renting lab space, 5% yield

13. Middleby - restaurant equipment

14. Jack in the Box - fast food franchising, 4% yield

15. Teck Resources - copper and zinc mining

16. Thor Industries - recreational vehicles

17. Iridium - satellites

18. FirstCash Holdings - pawn shops

19. Chart Industries - LNG, hydrogen, natural gas handling

20. Titan International - tires and wheels for farm equipment

21. AES Corp. - solar/wind energy and Midwest utilities, 5% yield

22. Royal Gold - gold royalties

23. Revvity - lab equipment

24. Royalty Pharma - drug royalties, 4% yield

25. Kinder Morgan - gas pipelines, 4% yield