It would be stupid to completely change my investing style for 2017. Except for a couple of very bad picks, most of my 2016 picks were at least OK.
For the year ahead, I thought about using the magic formula in a brain-dead manner (just pick the highest ROE/low ROE stocks and don't care about the quality of stocks).
Or I thought that I could mix the usual high ROE/not too high PE with some not so obvious picks (Rochon's picks).
Almost all of these are momentum stocks because the growth in the recent past has been great. Some of them are ready for a big acquisition (Constellation Software, CGI Group, Knight Therapeutics, Disney...). Half of them have a great ROE (Constellation Software, Alimentation Couche-Tard, Linamar, Tucows, United Therapeutics). Some of them operate in boring industries (Alimentation Couche-Tard, Linamar, Mohawk, LKQ). I really believe in this group and I strongly believe that it will beat the market over the next 12 months.
1- Constellation Software (softwares);
2- CGI Group (consulting services);
3- Alimentation Couche-Tard (convenience stores);
4- Linamar (auto parts);
5- Knight Therapeutics (healthcare, but mostly a full-cash company for now);
6- Tucows (Internet services);
7- United Therapeutics (healthcare);
8- Mohawk Industries (carpets and ceramics);
9- Disney (movies, thematic parks, ESPN and more);
10-LKQ (auto parts and cours à scrap).
I invite everybody to suggest stocks for 2017. Some guys wrote recently that they wanted a challenge. Just compete with me and with all the crazy guys who read this blog.
So, just build a 10 stocks portfolio like I did. If you're lazy or possessive of your precious portfolio, you can suggest only a couple of names that appear interesting to you.
Fuck those holiday times which are over now. Let's get serious. Let's make money.