Starbucks (SBUX)

Great company. Still lots of growth ahead of it, but quite expensive, trading at 23 or 24 times earnings. You could buy it here for what it is going to be 5 years from now, but be prepared for that one miss of quarterly earnings, such as we had last week, where the stock was down 6%-7% in a couple of days. The stock is priced to perfection.

A big fan of this. One thing he likes is that it hasn’t been on a tear. You want to invest in sectors that are demonstrating leadership and outperformance. He is not tremendously positive about Consumer Discretionary. It rolled over about December and broke a pretty long-standing trend line. However, this company is doing everything right. It has all the right earnings drivers, rolling out new products, running efficiently, store growth, etc. During the recent dip in the market, this one pulled back a lot less than others, proving it to be a little more defensive.

This is a great company. As a retailer they have done everything right. However, given his view of the market, he would just hold off. Wait for it to reprice a little bit with a pullback in the market.

A unique company with a great brand name. A lot of brand-name companies get momentum for certain periods of time and get much above their earnings, and then the stock has to move sideways. Growing internationally and thinks it will continue to do so. Changing a lot of their formats which has really helped. Got ahead of itself and will move sideways for a while.

(A Top Pick March 10/15. Up 29.8%.) Consumer has been his biggest weighting in the last 2.5 years, and continues to be today. This is one that has had lots of little pullbacks along the way, but stayed technically sound.

Same store sales up about 8%. It is remarkable for a company their size. They are heavy in the morning business. They are now serving more product in the afternoon, causing more revenue and revenue growth. The consumption of tea is faster growing. If it goes sideways for a year and revenues grow, then it would be an entry point.

One of the growthier names as opposed to a defensive name. Likes their growth metrics and this is a world class name. Not another name is comparable on a global basis. You are paying a bit of a premium on valuation, but it is worth it. Have lots of great expansion plans coming forward. Moving well into food items and different types of beverages.

(Top Pick Mar 10/15, Up 26.04%) It is one of his biggest positions. He really likes the consumer sector. He sees early strength coming off the bottom. It is very recession resistant. They have done such a good job executing.

Would love to own this, but it has always been a bit too rich for him. Trading at 30X forward earnings. Thinks their move into China will serve them well, but the Chinese don’t drink a lot of coffee, they drink a lot of tea.

A great consumer product company. She would look at this in a more volatile market and on a pullback. They have been great at introducing more food into the restaurants. Not as international as some of the other quick serve restaurants, so that is an avenue of growth. Very well-managed, but not a cheap stock.

(A Top Pick Jan 26/15. Up 34.88%.) Would still buy this today. There is a 4% wage growth in the US, 20 states have raised minimum wage, and consumer confidence is improving. This is a great franchise with lots of opportunities to grow globally.

(A Top Pick Dec 4/14. Up 46.95%.) A rich valuation trading at 31X forward earnings, but it has an 18%-19% growth rate. You are paying for that great global brand. Their expansion into baked goods, teas and juices is doing very well. The international market expansion is continuing to do well and is a source of catalyst in terms of earnings. Have executed very well with their mobile applications and loyalty programs. This is a stock you can buy on dips, like it has had in the last few days.

(Top Pick Jan 9/15, Up 52.97%) It is a growth oriented stock and should continue to do well. It is also a dividend grower. Growth will be driven off emerging market penetration.

Expensive, but they do what they do really, really well. They continue to find ways to channel development that they can monetize. Earnings trajectory is positive, technicals are very positive, and he likes the story and is on his list.

(A Top Pick Dec 16/14. Up 56.63%.) He always knows that this is going to have a great rate of return.