Top 10 Stocks for 2012

By on December 20, 2011

This is the time of year when many investment publications create lists of stocks they foresee as being superior bets in the coming year.

I’ve compiled several of the selections below with my opinion on the validity of the choices.

First off, we see Barron’s picks of which I subscribe to, but they inexplicably stopped delivering for some reason about 6 weeks ago. Barron’s was honest enough to show their 10 picks from the previous year which overall underperformed the market by falling a collective 6.9% at the time of publication. They were especially dragged down by JPMorgan Chase (JPM) and General Motors (GM) which fell 23.7% and 43.0%, respectively.

Of Barron’s 10 favorites from last year, only three had positive returns, Exxon (XOM) +8.9%, Wal-Mart (WMT) +7.2%, and Pfizer (PFE) +15.4%. Coincidentally, and quite luckily, the three gainers are holdings in the SMA Portfolio, which probably significantly explains this portfolio’s relative success so far this year.

For the coming year Barron’s likes the following:

Berkshire Hathaway Inc. (NYSE:BRKA)

Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX)

Procter & Gamble Co. (NYSE:PG)

MetLife, Inc. (NYSE:MET)

Comcast Corporation (NASDAQ:CMCSA)

Sanofi-Aventis (NYSE:SNY)

Seagate Technology. (NASDAQ:STX)

Vodafone Group plc (NASDAQ:VOD)

Royal Dutch Shell PLC Royal Dut (NYSE:RDSA)

I personally own or manage accounts that have 6 of these holdings (FCX, PG, SNY, STX, VOD and RDSA). Since I continue to hold them I consider them worthwhile investments at this point. However, I’m most leary of STX which is in the particularly cut-throat and cyclical business of computer hard drives.

Of the ones I don’t own, I’d be most interested in initiating investments in BRKA and MET if their prices were brought down by overall weakness in the stock market. Financials have been weak overall this year and I’ve been very lightly invested in this area.

Smart Money, another Wall Street Journal publication, released their top 10 choices for 2012 which include:

Potash Corp. (NYSE:POT)

CNOOC Ltd. (NYSE:CEO)

SAP AG (NYSE:SAP)

Siemens AG (NYSE:SI)

AT&T (NYSE:T)

Exelon Corporation (NYSE:EXC)

Newmont Mining Corp. (NYSE:NEM)

New Gold, Inc. (AMEX:NGD)

Google Inc. (NASDAQ:GOOG)

Baidu, Inc. (NASDAQ:BIDU)

Of these, I hold T, EXC and NEM. I’d be interested in initiating investments in GOOG and POT if the market became weak overall (say Dow dropping below 11,000). They appear to be reasonably priced speculations with above average future prospects. Of course, these are mainly guesses, and the stock market is generally good at pricing in prospects for stocks in most cases.

I’ll look at several more top 10 lists of stocks for 2012 in another posting before the end of the year.

One Comment

  1. Tuning

    December 22, 2011 at 6:52 pm

    Many of these do sound promising

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>