Accenture Ltd. (ACN)

More and more people are moving to the Cloud and not knowing how to do it. Production for this company is helping companies do it. That will grow, grow and grow in his view. Has a huge cash horde, and are very good at integrating acquisitions. Sees it in the $150-$160 range in a year. Dividend yield of 1.8%. (Analysts’ price target is $138.)

The largest consulting company globally. It has morphed very nicely over the last 5 years, and has become the leading consultant towards the Internet and Cloud computing. Cloud computing is really just getting going. Companies need a lot of help in terms of analysis, and how to go about doing it and how to implement it. This is a huge free cash flow generating machine. Dividend yield of 1.9%. (Analysts’ price target is $133.50.)

Sort of quasi businesses where you would see some capital spending. They act like the market and have the same beta, but has outperformed the S&P. Chart shows a nice, brilliant trend. They are connected with pretty much every company you could see out there. (Analysts’ price target is $$133.50.)

This has done well over the last 5-10 years. Chart shows a breakout that has taken place in late 2014, but then started to flatten off in 2015. This is a stock that has a higher beta than the marketplace. It is economically sensitive. As the market goes down, this is going to go down, and probably more than the market in the long-term. This is not the time to be adding extra beta into your portfolio.

Used to own this and it did really well on the back of the outsourcing trade. Has fallen recently but he thinks this is a very good long-term story. If you have a longer-term timeframe, this is an interesting stock to watch. If it falls to much lower levels, then think about adding to it.

As companies globally look to reduce costs, there is going to be a continued push to outsource in both the IT and the consulting space. This company is very well-positioned to take advantage of that because of their “best in class” reputation. Have some pricing ability in that sense. A nice business in that it is very asset light in terms of what you need to conduct it.