Our first idea is a low-priced fund whose top five holdings are UnitedHealth Group Inc (UNH, 4.97% of assets), Seagate Technology PLC (STX.SI, 2.88%), Best Buy Co Inc (BBY, 2.82%), Ross Stores Inc (ROST, 2.80%) and Metro Inc (MTRAF.TO). Our other two recommendations are sells of previous recommendations.
Buy: Fidelity Low-Priced Stock Fund (FLPSX)
From Insiders Plus
For further exposure to emerging markets, I want to add some Fidelity Low-Priced Stock Fund (FLPSX). The fund has an excellent track record and its lead manager really understands value. It is not fully an emerging market fund, but a small-cap value fund, however, its domain is the world and its manager recently said they are seeing little value in American stocks, while many of his favorite holdings are from abroad.
In coming weeks, I may recommend a couple of individual stocks from this portfolio, but for now, I just want a small piece of the fund. I’d buy more, but small caps underperform large caps in down markets (and outperform significantly early in bull markets) and I suspect we’ll be running into one of those within a year or so. Buy the Fidelity Low-Priced Stock Fund up to $55.25. Take a 2% position in the Main Portfolio.
Jack Adamo, Jack Adamo’s Insiders Plus, www.jackadamo.com, August 26, 2017