Last year we asked seven portfolio managers for their best ideas, and the 22 stocks they offered made up quite a portfolio (see Hot Hands, Hot Picks). Seventeen of them posted double-digit gains, and all but three were in the black for the year. Overall, the picks returned 29% to May 14, including dividends, easily beating the 18% total return of Standard & Poor's 500-stock index.
The top-performing stock was Chaparral Steel (CHAP), picked by Don and Craig Hodges, of the Hodges fund. It soared 129%. The Hodgeses' picks, including Texas Industries (TXI), which spun off Chaparral in 2005, gained an average of 47%.
| Row 0 - Cell 0 | 21 Stocks to Make You Rich |
| Row 1 - Cell 0 | 25 Best Mutual Funds |
| Row 2 - Cell 0 | Latest Stock Coverage |
Rudolph-Riad Younes, manager of Julius Baer International and Julius Baer International II (see The 25 Best Mutual Funds), contributed three big gainers: Mexican homebuilder Homex Development (HXM), up 71%; French cement maker Lafarge (LR), up 38%; and London-based distiller Diageo (DEO), up 28%. Overall, his picks returned 38%.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Hedge-fund manager Joel Greenblatt, of Gotham Capital, gave us two winning ideas: AutoZone (AZO), up 48%, and American Express (AXP), up 20%. Bruce Berkowitz, manager of the Fairholme fund, gave us three picks that produced an average return of 31%. Satellite-TV provider EchoStar Communications (DISH), which vaulted 59%, led the pack.
The picks of Al Frank fund's John Buckingham and CGM Focus's Ken Heebner returned 24% and 16%. One disastrous choice, clothier Christopher & Banks (CBK; down 34%), hurt Nancy Prial, of AMG Essex Small/Micro Cap Growth. Her picks gained just 3%, on average.
-
If You'd Put $1,000 Into Home Depot Stock 20 Years Ago, Here's What You'd Have TodayHome Depot stock has been a buy-and-hold banger for truly long-term investors.
-
I Need to Free Up $1,000 in My Monthly Budget, and I've Already Given Up Starbucks and Dining Out. What Else Can I Do?Here are some creative ways to save up to $1,000 a month, even if you feel like you've already made all of the obvious cuts.
-
What the Rich Know About Investing That You Don'tPeople like Warren Buffett become people like Warren Buffett by following basic rules and being disciplined. Here's how to accumulate real wealth.
-
How to Invest for Rising Data Integrity RiskAmid a broad assault on venerable institutions, President Trump has targeted agencies responsible for data critical to markets. How should investors respond?
-
What Tariffs Mean for Your Sector ExposureNew, higher and changing tariffs will ripple through the economy and into share prices for many quarters to come.
-
How to Invest for Fall Rate Cuts by the FedThe probability the Fed cuts interest rates by 25 basis points in October is now greater than 90%.
-
Are Buffett and Berkshire About to Bail on Kraft Heinz Stock?Warren Buffett and Berkshire Hathaway own a lot of Kraft Heinz stock, so what happens when they decide to sell KHC?
-
How the Stock Market Performed in the First 6 Months of Trump's Second TermSix months after President Donald Trump's inauguration, take a look at how the stock market has performed.
-
Fed Leaves Rates Unchanged: What the Experts Are SayingFederal Reserve As widely expected, the Federal Open Market Committee took a 'wait-and-see' approach toward borrowing costs.
-
Fed Sees Fewer Rate Cuts in 2025: What the Experts Are Saying
Federal Reserve The Federal Reserve cut interest rates as expected, but the future path of borrowing costs became more opaque.
