ShareThis Page
John Dorfman: Here are the stocks I own | TribLIVE.com
John Dorfman, Columnist

John Dorfman: Here are the stocks I own

1276129_web1_AP19161498999326
AP
Trader James MacGilvray, right, works on the floor of the New York Stock Exchange.

I recommend about 250 stocks a year in this column, but usually hold only about 25 stocks in a typical client portfolio.

Naturally, readers ask from time to time, “Well, what do you actually hold?” So, once a year in this column I report on the holdings in my firm’s Model Portfolio. I own these for most clients.

Technology

Buying stocks with rising dividends is a time-tested technique. Intel Corp. (INTC), the nation’s largest semiconductor maker, fits squarely into this paradigm; it has increased its dividend by 6% a year in the past five years.

Apple Inc. (AAPL) has raised its dividend even faster, more than 10% a year (though its yield is lower).

Check Point Software (CHKP), based in Israel, specializes in internet security, a timely area. The stock is expensive, but the 13% annual earnings growth rate in the past 10 years is impressive.

Sony Corp. (SNE), which has its headquarters in Japan, makes consumer electronics, notably the Sony PlayStation, and runs a movie studio, Sony Pictures. Its return on stockholders’ equity in the latest 12 months was more than 26%.

Financial

Berkshire Hathaway Inc. (BRK.B), the kingdom of the renowned Warren Buffett, is huge in reinsurance and insurance. It also has interests in railroads, utilities and scores of other businesses. It’s nice to be aligned with a genius.

Bank OZK (OZK), traditionally a very profitable bank with a niche in construction lending, has expanded rapidly — too rapidly, in the view of critics. We are reviewing this holding.

China Construction Bank (CICHY) is one of the largest banks in China. While many investors avoid China because of authoritarian government and lax accounting, we believe there is opportunity in the world’s second-largest economy.

MasterCard Inc. (MA) made it into the model at the urging of my colleagues, despite my skeptical view that it was pricey. It has been our best performer. It keeps expanding internationally and is hugely profitable.

Progressive Corp. (PGR) is a property insurance company whose humorous ads are often seen on national TV. Its market share and revenue have been growing nicely.

Communications services

Alphabet Inc. (GOOGL), the parent of Google, strikes me as one of the most innovative companies in the world. In addition to its signature search engine, it runs YouTube, works on artificial intelligence and is developing self-driving cars.

Walt Disney Co., famous for its theme parks and movies, is a TV power, owning ABC, ESPN and the Disney Channel. It will soon start a streaming service, for which I have high hopes.

Consumer stocks

An old favorite of mine is Sanderson Farms (SAFM), a Mississippi-based chicken producer that benefits from the long-term trend for Americans to eat more chicken and less beef.

Escalade Inc. (ESCA), a more recent acquisition, makes sporting equipment such as basketball hoops and archery gear. The stock sells for a modest eight times earnings.

One of our newest acquisitions is Walmart Inc. (WMT). It seems to be making rapid progress and is selling online, in competition with Amazon.com.

We are having some trouble with Walgreen Boots Alliance (WBA), which has declined since we purchased it. I think investors are worrying too much about threats from national health insurance and from Brexit.

Health care

A longstanding holding is Fonar Corp. (FONR), which makes specialized magnetic resonance imaging (MRI) machines and runs MRI centers. It is a very small stock, selling for only eight times earnings, with minuscule debt.

Our other health care choice, Zoetis Inc. (ZTS), makes medicines for farm animals and pets. It is unabashedly a growth stock, not a value stock.

Energy

Energy has been a sore spot in the portfolio this year. Struggling badly is Antero Resources Corp. (AR), a natural gas producer whose shares sell for less than four times earnings. Insiders have been actively buying the stock.

Holding up better is Helmerich & Payne Inc. (HP), an oil service company. Its strong balance sheet should help it get through the industry’s current tough times.

Miscellaneous

Li Ka Shing, a famous financier in China, built CK Asset Holdings Ltd. (CHKGF). It owns buildings in Hong Kong and throughout the world, including the Chelsea Waterfront in London.

SPDR S&P Emerging Markets Dividend ETF (EDIV) gives us exposure to emerging markets, which generally have younger populations, faster economic growth and smaller government deficits than the U.S. does.

An old favorite of mine is General Dynamics Corp. (GD), which I consider the best-run U.S. defense contractor.

In a world where political and military tensions run high, I also like having a little exposure to gold, which is usually resilient in crises. I get it from SPDR Gold Trust (GLD).

The final stock is a homebuilder. Since I am still accumulating it for clients, I won’t name it right now.

Disclosure: I own each of the stocks discussed today and in most clients’ portfolios.

John Dorfman is chairman of Dorfman Value Investments LLC in Newton Upper Falls, Mass., and a syndicated columnist. His firm or clients may own or trade securities discussed in this column. He can be reached via email.

TribLIVE commenting policy

You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.

We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.

While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.

We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers

We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.

We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.

We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.

We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.