My wife, my kids and I have attended many B'nai Mitzvot (plural of Bar or Bat Mitzvah), nearly every weekend, over the course of the past several months. I always get asked the question:

"What should we do with the child's gift money?"

Several years ago, I devised the Bar Mitzvah portfolio. The portfolio, which I periodically update, is comprised of growth and income stocks, and I constructed it in such a way as to pique the interest of a teenager, including stocks that the beneficiary can identify with.

For example, a teenager would likely be more interested in a stock whose products he or she is familiar with, such as Apple ( AAPL), than in a stock like Olin ( OLN), which I own for my client accounts at LakeView Asset Management And I wouldn't want to draw a teenager's attention to Boston Beer ( SAM), even though it is one of my favorite stocks.

So here is the Bar Mitzvah Portfolio, in its current version:

Apple ( AAPL): Apple, the maker of iPods, iPhones and Mac computers and operator of iTunes, iChat and the Safari web browser, is one of the most recognizable brands by preteens and teens (not to mention most if not all of the older age groups as well).

The company is taking market share from Microsoft's ( MSFT) Windows operating system and desktop computer manufacturers such as Dell ( DELL) and Hewlett-Packard ( HPQ). Many schools are installing networks of Mac computers, and some schools have been using Macs for years. When these students come home, they are demanding Macs over the Windows-based alternatives.

Apple has and will continue to grow earnings at a rate of 20% to 25%, which doesn't even factor in the new products that this innovative company continues to produce. The company has zero debt, sells at about 5 times sales and under 7 times book,and has about $26 per share in cash and equivalents on its balance sheet.

Google ( GOOG): Is there a kid out there who does not "google" things on the Internet? Libraries might as well be ancient ruins to today's students, especially those in elementary and high school. These days, they do most if not all of their research online, and Google is the search engine of choice. The verb "google," which means to search the Internet using the Google search engine, is now included in the global lexicon and has even been included in many dictionaries. And while Microsoft's Internet Explorer still dominates Web browsing, Google has introduced its fast-growing Chrome browser.

But Google is not all about Web search. The company is also the de facto leader in Internet-based advertising, deriving nearly $23 billion in online-advertising-related revenue in 2009. The company grows earnings at the rate of about 15% to 17%, and together with Apple, it was one of the few companies to have little or no impact from the Great Recession. As with Apple, Google has no debt and has just under $77 per share in cash and equivalents on its balance sheet.

McDonald's ( MCD): My generation grew up with Ronald McDonald, the Hamburglar and the Golden Arches.

Today, thanks to menu improvements, expanded hours and excellent management, McDonald's is familiar to a whole new generation, including children in Europe and Asia, particularly China.

McDonald's has been able grow revenue and same-store sales comparisons during the Great Recession. The stock sells at just 3 times sales and 5 time book value. The company has returned billion of dollars to shareholders over the course of the past few years, through stock repurchases and dividends. Currently McDonald's has a dividend yield of 3.5%, and it has consistently boosted its dividend payout per share. The real excitement for the company is coming out of China, its fastest-growing market. McDonald's has one of the deepest management teams in all of corporate America.

First Israel Fund ( ISL): It's traditional to give the Bar or Bat Mitzvah child cash or Israeli bonds as a gift. I've taken this concept one step further: Let's give the child stock in Israeli companies.

Israel was one of the best-managed economies during the Great Recession. Furthermore, Israel is a hot bed of technology, engineering and biomedical research. I strongly suggest that you pick up a copy of Start-Up Nation by Dan Senor and Saul Singer to get a deeper appreciation of the Israeli economic miracle.

ISL is a diversified portfolio of Israeli stocks, with the largest holding, comprising about 11% of the portfolio, in Teva Pharmaceuticals ( TEVA). ISL sell at a discount to its net asset value of about 7%. If you prefer, you may substitute ISL with exchange-traded fund iShares MSCI Israel ( EIS). I own both for my clients.

Schlumberger ( SLB): I felt that it was necessary to put an energy company into the Bar Mitzvah portfolio; it's hard to construct a portfolio without one.

Of course, when it comes to the Jewish people, oil is a very sore subject, so I had to tread very carefully in this suggestion. I first considered adding Exxon Mobil ( XOM), the integrated oil and gas conglomerate and the largest stock by market capitalization in the U.S. I believer that there are better opportunities in oil a gas services, however, and when it comes to that segment of the energy patch, there is no better company than Schlumberger (SLB).

Schlumberger has almost enough cash and short-term investments to pay off it debt. After nearly two years of economic uncertainty, the oil and gas contract service business may be picking up in 2010. The company pays a 1.2% annual dividend.

Goldman Sachs ( GS): Having already included technology, consumer discretionary, food, international and energy companies in the Bar Mitzvah portfolio, I now had to search for a financial services company.

There was no hesitation in my selection of Goldman Sachs. Goldman is the best investment bank with the best traders, and it delivers superior investment management and investment research to its clientele. It's in a class of its own and should be included in anyone's portfolio.
At the time of publication, Rothbort was long AAPL, EIS, GOOG, GS, ISL, OLN, SAM and SLB, although positions can change at any time.

Scott Rothbort has over 25 years of experience in the financial services industry. He is the Founder and President of LakeView Asset Management, a registered investment advisor specializing in customized separate account management for high net worth individuals. In addition, he is the founder of, an educational social networking site; and, publisher of The LakeView Restaurant & Food Chain Report. Rothbort is also a Term Professor of Finance at Seton Hall University's Stillman School of Business, where he teaches courses in finance and economics. He is the Chief Market Strategist for The Stillman School of Business and the co-supervisor of the Center for Securities Trading and Analysis.

Mr. Rothbort is a regular contributor to's RealMoney Silver website and has frequently appeared as a professional guest on Bloomberg Radio, Bloomberg Television, Fox Business Network, CNBC Television, TV and local television. As an expert in the field of derivatives and exchange-traded funds (ETFs), he frequently speaks at industry conferences. He is an ETF advisory board member for the Information Management Network, a global organizer of institutional finance and investment conferences. In addition, he is widely quoted in interviews in the printed press and on the internet.

Mr. Rothbort founded LakeView Asset Management in 2002. Prior to that, since 1991, he worked at Merrill Lynch, where he held a wide variety of senior-level management positions, including Business Director for the Global Equity Derivative Department, Global Director for Equity Swaps Trading and Risk Management, and Director for secured funding and collateral management for the Global Capital Markets Group and Corporate Treasury. Prior to working at Merrill Lynch, within the financial services industry, he worked for County Nat West Securities and Morgan Stanley, where he had international assignments in Tokyo, Hong Kong and London. He began his career working at Price Waterhouse from 1982 to 1984.

Mr. Rothbort received an M.B.A., majoring in Finance and International Business from the Stern School of Business, New York University, in 1992, and a B.Sc. in Economics, majoring in Accounting, from the Wharton School of Business, University of Pennsylvania, in 1982. He is also a graduate of the prestigious Stuyvesant High School in New York City. Mr. Rothbort is married to Layni Horowitz Rothbort, a real estate attorney, and together they have five children.

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