As we observe Martin Luther King Jr. Day, this edition of the Holiday Portfolio takes a quick look at the stocks already in the portfolio and adds a fifth stock -- the readers' choice -- to the list to debate and review throughout the year. Before we get started, let's review the ground rules. The concept of the Holiday Portfolio is simple. I select a group of five stocks that I think deserve watching over the next 12 months, and I follow them -- regardless of their performance -- throughout the year. I revisit the portfolio on each market holiday and occasionally comment on the stocks on RealMoney's Columnist Conversation. A stock is removed from the portfolio only 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, let's take a quick look at the stocks that make up the holiday portfolio and their performance out of the gate in 2005.
When a year starts off as slow as this one has for this group of stocks, you have to remind yourself that it isn't always the rabbit that wins the race. In fact, with our basket of stocks that's skewed toward the larger end of the capitalization spectrum, patience is a virtue. With that said, Pfizer's ( PFE) decline of more than 5% is a bit troubling. I still like this major pharma's drug portfolio, and notwithstanding continued concerns over Celebrex and some of the company's other advertising campaigns, this stock should find a way to rebound over the course of the year. Of course, that's assuming there is no other major revelation that might question the company's way of doing business.