Littelfuse Inc. (LFUS-Q)

A long-term hold or trading stock? They make fuses. Fuses, sensors and LED lighting is their future. He's long held this and will hold it. Analysts don't understand this stock. Very volatile. has 8% organic growth, over double the U.S. market. 17% profit increase in the past year. Auto sector was weak in Europe and China, but they generate a lot of free cash flow. A recent acquisition has been paid off already. It's in a cyclical industry and it's a small mid-cap stock, so there's no volatility when the wider market goes down. The dividend has tripled in 8 years. There's lots of growth coming. Buy half now and buy more later. If you own it, hold it and enjoy the ride.

It’s not just smartphones and cars, it’s diversified. With small caps, have to pay attention to free cash flow and company quality. It was overextended, and now it’s trading at 15x. He has no intentions of selling his stake. Dividend continues to rise, and this is what you should focus on, since 2⁄3 of all performance comes from this. Not concerned about the share price, as long as underlying earnings are there.

(A Top Pick May 19/17, Up 28%) The benefit from the electrofication of so many things now, like cars. Wisely, they listen to their customers and build what they want. More computerization in cars requires more fuses. They also make LEDs and sensors. These three are active areas for growth. He's owned it since 2010. Dividend growth continues to be 12-14%. He'd buy half-positions at this point.

Currently trading at around 25X earnings. Down the road and in the future, as more electric cars are coming into play, there is going to be more demand for fuses in cars and other power generations. This is a quality company. It's a little rich now, so continue holding. It would have to come down with the market before he became interested in buying more again.