Holiday Portfolio Gets Warm Welcome

As we celebrate the second market holiday of 2006, this edition of the Holiday Portfolio takes a quick look at the stocks already in the portfolio. Before we get started, here are the ground rules.

The concept of the Holiday Portfolio is simple. I select a group of five stocks that I believe deserve watching over the next 12 months, and I follow them -- regardless of their performance -- throughout the year. I'll revisit the portfolio on each market holiday and, at times, make comments about the stocks on RealMoney's Columnist Conversation. 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.

The portfolio serves two purposes. First, it follows the fundamental progress of a group of stocks over a longer period of time. My hope is that the portfolio will serve as a forum for in-depth discussion of investment decisions and company strategy, and reinforce the importance of ongoing portfolio analysis. Second, it provides an opportunity to look at both short-term trading strategies and longer-term investment strategies with the same stocks.

So, as you sit back and enjoy a day off in the middle of what has been a warmer-than-normal winter and a pretty warm market, let's take a quick look at the stocks that make up the Holiday Portfolio and their out-of-the-gate performance.

Hard to Miss

In a market like this, it has been hard not to make money on the long side. That said, it's also easy to get complacent and start trying to hit home runs by changing your strategy midstream. That's the nice thing about the Holiday Portfolio: no changes, and a diversified basket of stocks.

Altria(MO Quote) continues where it left off in 2005. It remains a core portfolio holding for any growth and income investor as a leader in both profit growth and its ability to grow its cash dividend. If you don't like tobacco, you won't touch this one, but it is important to remember there is much more to Altria than just the old Phillip Morris.