Author Topic: What Are Your Current Top 5 Safe Large Cap Picks As Of Today  (Read 6699 times)

Viking

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What Are Your Current Top 5 Safe Large Cap Picks As Of Today
« on: March 21, 2020, 12:37:33 PM »
Here is the scenario. Your mother comes to you an says she has $100,000 in cash and would like you to invest it in the stock market in the coming weeks. She is going to give the shares, down the road, to her grandchildren (forget about estate planning and taxes). Ideally she would like to own 10-15 different companies. Here are her filters:
1.) safety of principal, adequate return is paramount
2.) large cap only (S&P 1000 type)
3.) best in class, experienced management team
4.) minimal leverage, ideally net cash balance (this would exclude companies like BAM)
- easily able to weather current storm without having to issue shares (diluting existing shareholders)
5.) stock is on sale today (this would possible exclude a company like Amazon)
6.) company has long runway of growth potential looking 10 years into the future (expected to be a winning horse)
7.) total return is goal (dividend income is not required)

What are your top 5 picks as of today?

My no brainer picks would be: Google, Microsoft, Facebook and Berkshire.


no_free_lunch

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Re: What Are Your Current Top 5 Safe Large Cap Picks As Of Today
« Reply #1 on: March 21, 2020, 12:38:50 PM »
I would add AMGN to your list.

coc

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Re: What Are Your Current Top 5 Safe Large Cap Picks As Of Today
« Reply #2 on: March 21, 2020, 01:53:15 PM »
If I had that mandate Iíd think hard about buying an index fund. Youíre unlikely to beat the market by more than a point or two and thatís optimistic. The index will be driven by those 10-15 companies anyways, and youíre certain to do well over time, especially from todayís prices.

Spekulatius

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Re: What Are Your Current Top 5 Safe Large Cap Picks As Of Today
« Reply #3 on: March 21, 2020, 02:17:57 PM »
GD - they do have exposure to cyclical business jets (which may even benefit from the covid epidemic in the long run if you think about it), but most of the business is defense. Full order book and very cheap.

They do have some debt, but considering their largest customer is Uncle Sam, it looks like a save bet to me.
Life is too short for cheap beer and wine.

Uccmal

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Re: What Are Your Current Top 5 Safe Large Cap Picks As Of Today
« Reply #4 on: March 21, 2020, 02:31:09 PM »
If I had that mandate Iíd think hard about buying an index fund. Youíre unlikely to beat the market by more than a point or two and thatís optimistic. The index will be driven by those 10-15 companies anyways, and youíre certain to do well over time, especially from todayís prices.

Concur: 2/3 SPy; 1/3 Country of origin.   
GARP tending toward value

nickenumbers

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Re: What Are Your Current Top 5 Safe Large Cap Picks As Of Today
« Reply #5 on: March 21, 2020, 04:23:06 PM »
My 5 No brainers are:

BRK- but we all own it.

Google [price is down nicely]
Disney [Price is down, and even if they have their revenue murdered this year, think 1, 3 and 5 years out.]
Bank of America [Great bank, great price presently]
Applied Materials, LAM, or a couple others in the Semi Conductor Industry.  [We are not going to need less technology, or fewer phones/devices.]
Amazon- [But I don't love the price.  It is good, better, but not great.  The herd has purchased into this position.  It is still a good long term one.]
Wells Fargo-  Price to value is amazing.


If you have a stomach for a volatile ride, I would look at VIAC, and some of the mid priced home builders like Lennar and DR Horton.
The fastest Cheetah still waits for the lame baby antelope.  ..patience..

Spekulatius

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Re: What Are Your Current Top 5 Safe Large Cap Picks As Of Today
« Reply #6 on: March 21, 2020, 05:10:35 PM »
CMCSA is quite cheap and the broadband business should be stable even in a downturn. Seems way less risky than DIS to me and also the valuation is lower.
Life is too short for cheap beer and wine.

Gregmal

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Re: What Are Your Current Top 5 Safe Large Cap Picks As Of Today
« Reply #7 on: March 21, 2020, 05:15:01 PM »
TMO


edit, didn't really read the title of the thread as much as the op.

GOOG, BRK, ILMN, SPG, in addition to TMO. I'd also add MSG but its a smaller cap. Moats galore here. SPG probably seems quite speculative here, but so does basically all RE. I mean HHC for instance is at $40...
« Last Edit: March 21, 2020, 05:24:46 PM by Gregmal »

Castanza

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Re: What Are Your Current Top 5 Safe Large Cap Picks As Of Today
« Reply #8 on: March 21, 2020, 05:22:02 PM »
RTN still relatively cheap, and will probably see another leg down.
Core: MSFT | GOOG | | VZ | INTC | RTX | MSGS | BATRK | TPL | USB | PNC | BAC | PCYO | PPL | GRBK | PLNT | ESPO | HACK

TwoCitiesCapital

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Re: What Are Your Current Top 5 Safe Large Cap Picks As Of Today
« Reply #9 on: March 21, 2020, 06:29:41 PM »

Berkshire
Google

Are the obvious "safe" candidates IMO given diversified businesses and massive liquidity.

Exor is on the list - particularly if their 9 billion dollar sale of Partner RE closes and/or if merger and special dividends from Fiat come through, but comfortable at these prices if even if that's not the case.

Not sure if it counts as a large cap, buy I believe Annaly (NLY) is also a steal at these levels given its ability to navigate the mortgage crisis and it's portfolio of govt guaranteed mortgages.