This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Holiday Portfolio: Digging In to Year-End

The joys of Thanksgiving. A time to talk turkey, watch football and, of course, review's holiday portfolio.

Some lessons are easier learned than others.

At this time a year ago, I penned the following: "There is plenty to be thankful for in this year's portfolio, especially when you consider that one turkey -- Pfizer (PFE) -- is down over 20% (more on that later). In total, the portfolio has worked just about as I had hoped -- good balance between dividends and growth."

Fast forward one year, and the message is the same: The holiday portfolio has worked beautifully, showing that diversification -- meaning owning quality equities across various economic sectors (not necessarily just a lot of stocks) -- provides one of the better methods for stable, less volatile growth of an equity portfolio. The holiday portfolio is only five stocks, but stocks that represent diverse economic sectors, and it has again -- even with the ghost of Pfizer -- provided better-than-average performance.

This portfolio was built on the premise that the pieces for a solid economic environment were in place, but high energy costs could affect that growth. In addition, while I hoped the Fed policy would be accommodative, I wanted companies that could perform regardless of what the Fed might do. As such, I was hoping to combine the stability of income-producing equities with companies that were poised to benefit from economic growth with the income providing a "hedge" if my theory was a bit off. Pfizer hasn't worked; the others have.

Before I take a closer look at the five members of the portfolio, let's quickly review the purpose of this exercise I call the holiday portfolio.

365 Days

I created the first holiday portfolio three years ago, hoping to craft an occasional column (for those looking for something to read on market holidays) that would track a concentrated portfolio of core equities for an entire year. In doing so, it gives me (and you) the chance to think longer-term about the fundamentals of a company's business as well as its industry. We follow the stocks in the holiday portfolio -- regardless of their performance -- throughout the year. The only way a stock is removed from the portfolio is if it merges with another company or ceases to trade on a major exchange.

1 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,778.15 +421.28 2.43%
S&P 500 2,061.23 +48.34 2.40%
NASDAQ 4,748.3960 +104.0840 2.24%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs