Need Your Help Turning Over My Core Holdings
I have 34 core holdings (equal to my age) that are my "default" dollar-cost averaging weekly adds. Over time these should become my most prominent positions and are theoretically my favorite picks in any given year.

However, life comes at you fast, and you fall out of love with stocks over time. So I allow myself a 10% turnover within my core holdings. Of course, this implies I'll hold each stock for an average of 10 years, which is why I limit myself to this figure.

So with 34 holdings in 2022, I'll replace these three (about 10%): $SE, $TWLO, and $DOCU.

I want to be clear -- I am not selling any of these, just not making them active buys anymore with new money. Sea's adjusted EBITDA minus headquarter expenses bugged me too much, while Twilio and DocuSign have stock-based compensation that equals almost 20% of revenue yet are still unprofitable. I'm just not fascinated by any of the three anymore, which may be the biggest red flag for me.

Here's the 31 I'm left with -- by sector:


But now the fun part -- who should I replace these three with, and what should be my new addition for turning 35 in 2023?

Here's my watchlist for my four new potential core holdings with why I'm considering them.

  • $MA / $V - Probably a lock for me. It would be one "core" holding split equally between the two. The reasons why are pretty obvious, as they are incredible compounders. Keep it simple, stupid, comes to mind for me. 😂
  • $IDXX / $ZTS - They would build out healthcare for me while adding exposure to the unstoppable animal care industry.
  • $AZO / $ORLY - same as V and MA, but for cart parts and would act as an anchor stock for my portfolio.
  • $DPZ / $SBUX / $CMG - I don't have any food and beverage exposure, and these seem to be my favorite operators. I would lean toward Starbucks for the addiction benefit.
  • $POOL / $TREX - Best-in-class operators adjacent to housing/consumer/industrial-ish area.
  • $ODFL / $UNP - Best-in-class transporters would build up industrials for me.
  • $ULTA / $LULU / $NKE / $OLPX - I would love to add some consumer-facing brands, but not exactly sure where to turn as far as how safe to go.
  • $PGNY / $DOCS - I love both of these companies but would probably lean toward Progyny as it's so easy to root for.
  • $WM / $SHW / $BALL - I desperately need a boring stock like one of these to anchor my core holdings a bit more. Brings a more industrial allocation to my portfolio as well.

Who would you go with if you were forced to pick four off this watchlist?

Also, feel free to throw me a wildcard pick of your own if you have a stock that would fill a significant gap in my core holdings.

Thanks as always 🙏
Christian's avatar
$SBUX 100 percent. Love the company and happy to chat about it. $ULTA finally someone sees the value in this company. Love that name as well. $LULU is another name I want to own it’s just so expensive right now. I am not familiar with the other names in your watchlist. But a stock not there which I love is $CVS
Josh Kohn-Lindquist's avatar
@christian7621 Thank you Christian 🙏

Starbucks is going to get a long look, just a little scared about their exposure to China.

Really like Ulta as well, just need to learn a bit more about it.

Hadn't thought of CVS, but did recently run a reverse DCF model on them and WBA and they both looked really interesting -- not a bad idea at all to build out healthcare and add stability.
Christian's avatar
@joryko I’m happy to chat with you about any of those names. If your looking for a defensive name I love KO as well. Have both them and Starbucks
Nathan Worden's avatar
I’ll go with Waste Management. Probably a good diversifier.
Josh Kohn-Lindquist's avatar
@nathanworden Absolutely -- was thinking of them or even $HSY to just put pure stability in the portfolio somewhere.
Ben's avatar
$V and $TREX then either $ODFL or $POOL
Josh Kohn-Lindquist's avatar
@rpinvestments Thanks Ben 🙏

V and MA grouped together are looking like a lock at this point, very possible I end up with 2 of those other 3 too. 😂
Dave Ahern's avatar
I would vote for $WM or $ODFL. Boring can be beautiful. Great list by the way, $V /$MA will be great additions.
Josh Kohn-Lindquist's avatar
@ifb_podcast I appreciate it Dave 🙏

That's two votes for ODFL already and three for WM -- very interesting.
Dissecting the Markets's avatar
Why not $POOL and have $LESL replace $TREX? Leslie's is the largest pool retailer.
Josh Kohn-Lindquist's avatar
@dissectmarkets I'd probably only want one pool co. one way or the other and I guess I lean toward POOL just because of its dividend and high ROIC.
Dissecting the Markets's avatar
$WM has a recycling and green energy business that are small today and have huge potential for the future. $UNP is epic. $WING is a fantastic restaurant stock worth considering. $PGNY is also cool.
Josh Kohn-Lindquist's avatar
@dissectmarkets Thank you 🙏

I forgot about WING altogether, need to get it back on my radar -- that is a good wildcard. I just really love the durable nature of WM and UNP though. Just don't see any way they get disrupted.

PGNY definitely gets my heart's vote.
Steve Matt's avatar
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$SWAV I’ve been banging the drum on them for months. Checked out my update on their recent Q and look at those yearly numbers. Their revenue growth, the direction of their margins, it’s all immaculate.

Josh Kohn-Lindquist's avatar
@interrobangbros Very interesting looking company -- thank you 🙏 Will get it on my radar, love those financials.
Conor's avatar
So many good choices. I would add $CMG but wait for the price to drop. Way too expensive now. Same with $LULU. The others I like are $IDXX, $SBUX, $POOL, and $ODFL. I don't think any of these are trading at levels I would consider a buy as of right now.
Josh Kohn-Lindquist's avatar
@conorvalue Some of these have run a bit, but they're much stronger compounders than the three I'm kicking out so I feel better regardless. 😂 Would really like to get some CMG if it were cheaper, but will probably just build a position up for my daughter with CMG over time.
Hilario's avatar
Josh Kohn-Lindquist's avatar
@hdyankey Thank you, Hilario -- forgot about these two! Medpace is one of my favorites and InMode's growth is very attractively priced.
Hilario's avatar
@joryko many choices but you've a good list
StockOpine's avatar
$POOL and $ODFL as well as one of $V or $MA seem good picks but rather ‘expensive’. Of course, quality requires a premium.
Josh Kohn-Lindquist's avatar
@stockopine Knew you'd like POOL and ODFL from your substack. 😂 Almost certain V and MA will be in at this point, just need to decide if I split one position between the two or add both.

Thank you 🙏
StockOpine's avatar
@joryko slightly biased :) but we examined both companies in detail and we are confident that both possess ‘quality business’ characteristics. Currently, $ODFL is a bit expensive though and that’s why we haven’t initiated a position yet.
Conor Mac's avatar
I would say $MA and $V or one of the two.

I would also say $SBUX but I think it needs to be ~30% cheaper than what it trades at today to have a nice bit of value in it. $CMG also promising but way too expensive for what it is.

$WM is a stalwart.

I think $LULU has some strong sticking power, but might trade a little expensive at the moment.
Josh Kohn-Lindquist's avatar
@investmenttalk Thank you, Conor -- V/MA and WM are popular picks on here, it looks like. Definitely leaning toward them.

I've been waiting to buy CMG and CASY for my daughter since she loves their food, but can't get a drop 😂
Joey Hirendernath's avatar
I would go with adding some food and beverage exposure with $SBUX.
Josh Kohn-Lindquist's avatar
@joeyhirendernath Thank you, Joey 🙏 SBUX is looking like a strong contender for being added. Would bring some valuable dividends, too, for the portfolio.

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