NEW YORK (TheStreet) -- I've decided to design a new portfolio; this one is very different than those I've written about in the past. This is the anti-value portfolio, "The Super Six," comprised of what I consider to be six of the most overvalued, priced-for-perfection companies available in the markets today.
They are also six innovative companies, household names that have created a buzz among investors and consumers. I use the products or services of most of them, and will continue to do so. So will millions of Americans, as well as consumers across the globe. These are real companies with real businesses, but valuations and expectations have reached a fever pitch. When that happens, there's not a lot for room for error.
Admittedly, these situations can persist for a long time. As long as hope springs eternal and institutions continue to buy, the gravy train can continue. That is one of the value investor's great dilemmas; you perceive that a security is extremely overvalued, but two years later, the price has gone even higher. The stock is still overvalued, but you are the fool who made a bad call. Ultimately, though, companies either deliver results (a bottom line) or they don't; expectations or met or they aren't.
The Super Six is a richly valued portfolio. With an average market cap of $70 billion, the stocks have an average price-to-sales ratio of almost 18 and price-to-book ratio of 17.5. While the group has generated a collective $87 billion in revenue over the trailing 12-month period, that has not translated into meaningful bottom lines. Just three of the six are profitable on a trailing 12-month basis, and those three have an average price-to-earnings ratio of about 400.