Grass Looking Greener at Toro

Peter Lynch once said you should invest in companies whose products you use and whose names you recognize. In my case, that'd mean buying a boatload of Toro (TTC Quote) and Robert Mondavi (MOND Quote) stock. Let me tell you why that's not such a bad idea.

No kidding, when I was growing up my father was a fanatic about our front lawn. He'd have me out there every day scouting for weeds, and mowing the darn thing twice a week. And although I hated it at the time, I gotta tell you, our front yard looked like the 18th hole at Pebble Beach. Toro can do the same thing for your portfolio, folks.

First off, the company has been working overtime to slim down. It's shutting down two plants and closing out some of its lower-margin product lines, as well as seeking out lower-cost parts suppliers. Operating margins have gained 120 basis points over last year. ...