David Burrows is president and chief investment strategist of Barometer Capital Management. His focus is on North American large caps.
J.P. Morgan Chase (JPM-N)
Most recently purchased on Oct. 10 at $68.58 (U.S.)
JPM generates 75 per cent of its income in the U.S. and is a prime beneficiary of a strong U.S. consumer and higher interest rates. It is the U.S. bank with the best management team and is both gaining market share and expanding margins. It currently offers a 2.8-per-cent dividend yield and has grown that dividend at an 18-per-cent compound annual growth rate (CAGR) over the past 5 years.
Google "C" Shares (GOOG.O)
Most recently purchased Sept 16 at $768.27
A core piece of Internet infrastructure that is benefiting from the secular growth in digital and mobile advertising. A new level of capital and expense discipline can lead to a higher multiple and earnings upside going forward.
Pioneer Natural Resources (PXD-N)
Most recently purchased on Oct 10 at $191.31
PXD has the best acreage in the Permian basin, the lowest-cost basin in the US. Given the strength of their balance sheet, they are in a position to grow production at a 15-20-per-cent CAGR over the next five years.
Past Picks: Aug. 13, 2015
Wells Fargo (WFC-N)
Then: $56.89 Now: $44.50 -21.77% Total return: -19.36%
HCA Holdings (HCA.N)
Then: $90.85 Now: $80.39 -11.51% Total return: -11.51%
Then: $89.16 Now: $99.85 +11.98% Total return: +11.98%
Total Return Average: -6.30%