Analog Devices (ADI)

Fine company. Merging with a competitor, so this brings uncertainty. Not beholden to any one customer. He owns TXN instead, which does digital and analog chips. One of the most profitable of all of the chip manufacturers, and this is why he owns TXN.

ADI vs. TXN Likes ADI because of chips for driverless vehicles, and involved in 4G and 5G with telecoms. Aerospace and military applications. Fundamentals are better, dividend growth better. Over the next 5-10 years, better runway to grow, and with it earnings, profits, share price, and dividends.

This is part of his plan to invest more in four U.S. sectors including tech. He expects growth in cell phones; management predicts high-single-digit growth. (2.2% dividend yield, Analysts' price target: $106.76)

(A Top Pick Dec 5/14. Up 9.4%.) He still likes this. They just bought another company, which means that their cash positions are great and that they are expanding.

This is right in the middle of the technology space, and he thinks there is money flowing into technology. Feels there is pretty reasonable growth here. Very good balance sheet with minimal debt. Growing cash flow. Dividend yield of 2.57%.

Effectively a play on automobiles and industrial production. If you believe that the economy is starting to improve, particularly the US economy, this is probably an interesting area to look at.