Join Bill Gundersen on the ‘Best Stocks Now’ show as he explores the narrative behind market valuations and PE ratios. Together with Barry Kite, they examine the contrasts between high-growth sectors and cyclical stocks, providing listeners with a deeper understanding of strategic investment. From individual stock analysis to broader market movements, Bill’s expert commentary offers invaluable guidance for both novice and experienced investors looking to navigate the complexities of today’s economic landscape.
He’s been seen on CNBC, the Fox News Channel, and the Fox Business Channel. His articles can be found on MarketWatch, Seeking Alpha, TheStreet.com, and many other places. He’s the author of the weekly Best Stocks Now newsletter and the inventor of the Best Stocks Now app. He’s president of Gundersen Capital Management. Here is professional money manager Bill Gundersen.
SPEAKER 04 :
And welcome to the Thursday. It’s Thursday already, August the 14th. This is Bill Gunnarsson. This is the Best Stocks Now show. And you’re here with me and Barry Kite, our chartered financial analyst and certified financial planner. And a lot of other things. We’re getting PPI’d today a little bit in the market, Barry, but I’ve seen worse sell-offs than this. I wouldn’t get too hot under the collar over a 74-point sell-off in the Dow, which these days is only 17 basis points. You’re at 44,847 on the Dow. The S&P is down 7 after hitting a new all-time high yesterday, 6,459. The NASDAQ is down 17, which it also hit a new all-time high yesterday at 21,695. Small caps are getting hurt today the most. They’re down 1.3%. They do get impacted the most by any hotter than expected inflationary report. That’s usually the way it goes. And over at the bond market, the 10 years up. A few basis points here today. We’re at 4.27, but that’s pretty low compared to where we’ve been this year. In fact, we’re at 4.26 right now. Gold is down 40 basis points to 33.95, and Bitcoin continues. No, it’s down 36.35 right now to 118.282. So welcome to today’s Best Stocks Now show with professional money manager Bill Gunderson, president of Gunderson Capital Management, a nationwide fee-based only money management firm with our show heard in about, oh, I don’t know, 12 cities across America. And the good thing about our show, Barry, is we cover a lot of geographical territory. You know, from the Bay Area, where we’re headed next month, down to the opposite corner of the world, in Orlando and Sarasota. Right. And then, of course, you know, that big heart of America in Michigan and Minnesota and then down to Atlanta and over to Houston. Up to Cleveland, over to Pittsburgh, the Northeast. That’s what makes it so fun. every day and you know I’m overwhelmed by the people that sign up for the newsletter you know the four week trial that we offer out and the comments that they make about how much they enjoy the podcast etc etc etc I’m blown away by that and very appreciative to those who listen to what we have to say you know on a regular basis here on the market and I hope we can deliver to you A message that hopefully puts a little jingle jangle in your pockets and helps you towards your retirement someday. Well, you know, it’s those inflation reports. We had the CPI yesterday. It was a little hotter than expected, but we’re not going to get too bothered by a 3.3% CPI report. Today it’s the PPI report. And, excuse me. That PPI came in a little bit hotter than expected today. The headline was, PPI surges, Barry. Is that an accurate headline? I mean, I looked underneath the headline at the actual story. What’s your takeaway on the PPI today?
SPEAKER 01 :
Yeah, I mean, you know, the narrative has been, you know, tariffs finally impact prices, right? Or, you know, I mean, it’s one of these, in terms of the PPI, I mean, certainly eventually, right, that those prices can come through and show up in the CPI potentially, right? I’ve heard, you know, a lot of companies that have kind of, you know that are impacted by tariffs don’t really expect to raise prices until you know until 2026 so you know how much will this you know impact will this number have you know on the cpi going forward uh you know that remains to be seen but we’ve You know, we’ve had some numbers. I mean, just in February, we had a 3.6% number, right? That was before, you know, that’s really before we even knew what the tariffs were going to be.
SPEAKER 04 :
Well, you know, I respect Goldman Sachs a lot, especially on their market analysis. They’re usually right. And they are standing by their conviction that we will see. This is inflationary. And, you know, how can they not be inflationary?
SPEAKER 06 :
Right.
SPEAKER 04 :
the degree of inflation that they create i guess is the big question and of course today you’re seeing a little bit of that yesterday i spent a lot of time talking about the current valuation of the market which for me you know that’s an elephant in the room right now we’re running up against twenty year highs on uh… price to cash flow for the s and p five hundred price to uh… sales price to earnings, price to forward earnings. And, you know, it was interesting that yesterday we saw a big, we see this every once in a while, the lower P.E. area of the market, which has vastly underperformed the growth area, higher P.E. of the market. Yesterday it had its day in the sun. I saw a lot of cyclicals. I saw a lot of small caps. In fact, the Russell 2000 yesterday kind of broke out a little bit. It has been a severe underperformer this year, but by nature it is a lower P.E. index than the NASDAQ for sure. And so maybe there was a little money, a little bit of rebalancing maybe, let’s call it, away from the higher P.E. stocks. Home Depot has been breaking out, for instance, which is a much lower P.E. It’s not exactly Palantir or NVIDIA. It’s Home Depot. But it had a good day. And there’s nothing wrong with a little bit of spreading out, the market spreading its wings and the breadth growing a little bit. I have 900 B-plus or better ranked stocks in my app today out of 5,300. That number is up from 600 like a week ago. So the market has broadened out a little bit here. Overall, it is expensive, and we have to keep that in mind as we put new money to work here at Gundersen Capital Management. And as we continue to monitor a lot of the stocks that we own that have big gains in them, we have a few stocks that have gotten a little pricey on the PE, on the valuation ratios. There’s several valuation ratios. PE is the most common one. Forward PE is very important for me. But we did have a pretty good day in the market. It just wasn’t in the leadership stocks that normally we see leading the market. It was in more of the cyclical small caps. What do they have in common? Lower P.E. ratios. And it would seem a little rebalancing by the institutions away from some of the higher P.E. stuff to the lower P.E. stuff. That would be a natural flow of money at this time. Okay, it’s Thursday.
SPEAKER 01 :
I was talking to a client yesterday, and we were talking about valuations, and it was funny. We were pulling up Procter & Gamble and then looked at NVIDIA, and NVIDIA has got a 42. uh forward pe ratio but their you know their earnings growth number right is like 44 percent so their you know their peg ratio is actually below one which you know you could say uh um is a you know is a is a is kind of a value play from that standpoint and then you looked at you know we looked at procter and gamble and it’s a you know it’s a 22 forward pe ratio and i think the earnings growth i want to say was two percent yeah 2.2 yeah so in 11 basically in 11 there in terms of uh uh peg ratio so and where do you want to deal at it do you want to you know kind of get rid of some of those higher pe ratios and rotate into you know a procter and gamble probably you know I don’t think we would want to do that, and valuations don’t really prove that out either.
SPEAKER 04 :
No, and it’s the old adage, if you leave Palantir and NVIDIA, no, we own a lot of other stocks besides those two stocks, but if you leave them now, where would you go? Would you go to Colgate Palmolive? Would you go to Johnson & Johnson, which are single-digit growers at best? And the answer, at least from my perspective, is no. You know, I mean, you’ve got areas of the market that continue to flourish. And I like sectors of the market and companies in the market with Cracker Jack management that are flourishing, not languishing. They’re leaders and not laggards. Well, this is Thursday, and I’m not in the initial jobless claims line, Barry. Once again, I’m glad to have a job. Grateful for that here. and the line didn’t really increase this week, which shows that there’s no problem in the jobs market. And we’ve said it before and we’ll say it again, the first problems in an approaching recession would probably show up in the initial jobless claims line. We start to see increases there, and that’s why we watch that every Thursday for any indication of a slowdown in the labor markets, and we’re not seeing it. 224,000 this week, which is a very, very low number, and we still have a strong jobs market. Okay, a little PPI issue today, and a lot going on in the world and individual stocks today. We’ll be right back.
SPEAKER 05 :
I’ll be gone 500 miles when the day is done.
SPEAKER 1 :
Thank you.
SPEAKER 04 :
And welcome back here to the second quarter of today’s Best Stocks Now show. You know, the headline was this morning, Barry, right before the open, maybe 30 minutes before the open, I said, uh-oh, could be a rough day today. Stock index futures fall sharply after PPI comes in hot. Well, you know, there’s two words there in that sentence that might have been just a little bit overblown. The sharply part, I never saw the futures down more than a half a percent or so. And hot. Well, where was the PPI? It was 3.3. Okay.
SPEAKER 01 :
All right. It was the highest month. I mean, the thing is, you know, obviously it was the highest month since, you know, monthly reading at 0.9% since March of 2022. You know, like I said, it’s still, you know. It still wasn’t as hot as February’s 3.4% increase. But, you know, from an expectation standpoint, the month number was 0.2%. So it came in a good bit above estimates, right?
SPEAKER 04 :
Yeah, so I started to batten down the hatches when I read that. I had a lot of go, oh, it’s going to be a rough day. Well, you know what? The S&P is down eight points right now. The NASDAQ is down five points right now. So we’ve gotten past the headline. We’re okay, right? Okay, Eurozone GDP expands 1.4% in Q2, Barry. They’re going to have to raise interest rates over there or something. That economy is getting hot. Actually, that’s a pretty good number for the Eurozone, which is all of the countries there. But that’s good. I mean, that shows a healthy global economy. The Eurozone is usually below 1, you know, it’s usually 0.8 or 0.9. So 1.4 is a pretty good number for the Eurozone. And the one country that’s not in the Eurozone, they also reported over in that area, the European continent, the UK also had 1.4% growth. That’s acceleration in growth. And, you know, we like to see a healthy Europe. We like to see a healthy China. We like to see a healthy Southeast Asia. We like to see a healthy Latin America. because it is all tied together and helps make for a healthy United States of America. So we’d like to report on that, that they’re doing okay over there. Now, this was an interesting commentary. I like to see the bigger banks, much bigger than me, okay, much louder voice than I have. How about Deutsche Bank? Their global strategist at Deutsche Bank says the stock’s momentum is sustainable. as the S&P 500 and NASDAQ hit record highs. Okay, so yesterday I went through the numbers on the current valuations of the S&P 500. And I put that into perspective. This is the highest we’ve been in the last 20 years in some of those measures. However, you’ve got Deutsche Bank looking at it from the outside here, believing that the current market momentum is very sustainable. Now, I could find others that are saying, we’re ready for a crash. We’re ready for a huge recession, blah, blah, blah. I just report to you what these different people are saying, and I don’t just cherry pick them. Deutsche Bank, in fact, says the market momentum. Now, that’s separate from the valuation. Momentum can carry markets for a long ways despite valuations. Momentum can carry stocks a long ways despite valuations. And that’s why my app, my quant system, is half valuation and half momentum. which is a very unique combination in the industry for a quant system like the Best Stocks Now app. So they’re saying that because there’s so much demand and equities are performing so well, they think that… that it can go a lot higher and deutsche bank tends to be a little bit more on the the conservative side so anyways you know i kind of agree with their assessment you can’t just go out and sell all of your holdings because we’re at a high p e ratio in the s p 500 because there is that Kind of unmeasurable quantity, but it’s there, whether you like it or not. It’s momentum. And momentum really shows up when I look at the charts of the indexes, which are hitting new highs. We saw a breakout in the S&P 500 yesterday. We saw new highs in a lot of individual stocks yesterday. Cummins Engine broke out, for instance. Home Depot broke out. That’s an indication of momentum. Okay, Goldman Sachs standing by their assessment that they see inflation coming. That comes from their economist, David Miracles. He said the bank is standing by its recently published outlook that consumers are just beginning to feel the impact of higher tariffs. Trump, in turn, blasted the bank and its outlook in a Truth Social post on Tuesday. And, you know, you could look at both sides of this argument and this debate and say right now the tariffs are not showing up in the inflation report unless, you know, you look at the CPI, which is a little bit hot. But we just went through earnings season, and I was surprised at how few – companies actually said that, you know, we’re going to have to raise our prices because of tariffs. Well, there were a few, but then again, there were many, many, most, the vast majority said no impact. Trump signs an order to cut red tape for commercial space flights. Okay, I can hardly wait to orbit the Earth, and I’m waiting to buy my ticket, Barry. I have a hard enough time getting on a commuter jet and going to Detroit, right? Let alone getting inside a space capsule like Jeff Bezos’ friends did and got into that thing. But I did mention that one of the leading sectors in the market right now is space. And companies like Firefly and Rocket Labs and then, of course, even the Lockheed Martins of the world, you know, have some skin in the game there.
SPEAKER 01 :
Yeah, there’s some IPOs in that space.
SPEAKER 04 :
Maybe we’ll have our show will be heard on the moon. They’re putting a nuclear reactor there. They could pick up the show and we’ll have a little colony on the moon. We’ll get people calling in, subscribing to the newsletter from the moon. You never know. Got a lot of life ahead of us here yet. Chinese firm Deep Seek, they’re having issues with the Huawei chips, Barry. And, you know, NVIDIA, we’ve always wondered, we don’t know, is Huawei, do they have all of the ingredients to recreate those NVIDIA chips? How far behind is China in the NVIDIA chips? How many years has Jensen Wang, what kind of lead do they have? DeepSeek, the new large language model known as R2, is being impacted by the lack of access to NVIDIA’s high-end GPUs, which continues to make NVIDIA probably the greatest stock, one of the greatest stocks of my lifetime. And it should come as no surprise that it continues to be our largest holding, even though we own a lot of other stocks besides NVIDIA. It’s been very good to us, and it doesn’t look like Huawei’s quite got the algorithms that Jensen Wang has yet. We’ll be right back with some stock news.
SPEAKER 03 :
Don’t like him talking so much, and he won’t play what they say to play.
SPEAKER 04 :
This is Bill Gunderson. Thank you for tuning in to today’s Best Stocks Now, Best Inverse Funds Now show. I put several hours of research in during the wee hours of the morning each day to bring you the very best cutting-edge stories that I can. To get two free weeks of my newsletter, go to GundersonCapital.com. To talk to us about our fee-based only money management services, call us at 855-611-BEST. Now, back to the second half of the show.
SPEAKER 08 :
And welcome back here to the second half of today’s Best Docs Now show. The NASDAQ has now gone positive. It’s up 15 points.
SPEAKER 04 :
After that PPI report here this morning, which seems to be it is being shrugged off by the market at the current time, which shows, you know, that’s that momentum part. That’s that demand part for stocks buried despite. A week, a hotter than expected PPI report. It has had no impact, really, on the market so far. Okay, the next subject I want to talk about, I’ve had a lot of… of portfolios that have transferred to us recently quite a plethora of them in fact barry and i’m always i’m always so grateful for that you know that uh been busy that folks you know have said you know maybe gunnarsson’s team over there they they sound pretty good and i’ve heard what they do and i’m not too happy where i am or whatnot so i’ve had a chance to look at a lot of uh of of of Positions that come over to us from other firms. And, of course, my first job is when new accounts come over to us, which is on a regular basis, obviously. New positions show up in my ownership list. And I go through our ownership at Gundersen Capital, every position that we are responsible for and own, I go through them every single day. to stay on top of them. And when new ones come in, most I already know and know whether that’s a company I really like or one I really don’t like. And of course, that track record means a lot. A track record of a mutual fund, a track record of an ETF, a track record of a stock, that’s a good place to start. I mean, if you’re going to build a baseball team, You’re going to look out there in the minor leagues and in the colleges and find the best track records of pitchers and players, etc.? ? Why would it be any different for the stock market? But I’m really amazed that I’m not a fan of bond funds. And look, I’m not knocking anybody that puts their people into bond funds. But bond funds just have too many disadvantages for me as opposed to buying the individual bond. Now, Barry, you know what a Monte Carlo look at, you know, what are the chances of the outcome? If you buy 15 bonds that are five to seven years and they’re yielding, let’s say, 5.2%, That’s a pretty high Monte Carlo chance that you’re going to get 5.2%, right?
SPEAKER 01 :
Right, yeah. I mean, it’s a known as long as those companies remain in business. That’s why we purchase investment-grade bonds. But as long as those companies are in business, at the end, that return is a mathematically known return if you hold them to maturity.
SPEAKER 04 :
Yeah, now let’s just look at the AGG, which is just the index. AGG is a bond index. And I look over the last 10 years of that ETF, AGG, and this includes all of the coupons you’ve received off of it. It’s averaged 1.7% per year. The S&P is 21%. Over the last 12 months, it’s up 3.6%. That’s a pretty measly return. And, you know, whereas, you know, if you own an individual bond, your return over the last, it could be up or down a little bit because they do flow with interest rates. But if you hold that bond to maturity, and that’s the problem, I think, with bond funds.
SPEAKER 01 :
There is no maturity. Right. And if everybody, I mean, you could be fine with that bond exposure. If everybody else decides to sell that mutual fund or ETF, then your bonds are going to be impacted by that versus if you just held the individual bond, then you’ve got more control and you decide when that bond gets sold versus everyone else deciding that for you.
SPEAKER 04 :
Yes, we met with a couple in Bloomfield Hills, Michigan here, what was it, last week?
SPEAKER 01 :
Yeah. We had a lot of appointments. It kind of flows together, but yeah, last week.
SPEAKER 04 :
We had 21-hour meetings in two and a half days, which is one of the… Things I really enjoy best. And, of course, I’m looking at stock charts while all of us are talking while the team is engaged in discussions with these folks. I’ve got to keep the home fires burning, too. But anyways, they had 60% of a very large portfolio in bond funds. And I just did a sampling of three or four big positions that they had, and I looked it up in the app. You can also look up on Morningstar. Now, Schwab, we can look up on Schwab. We can click on the symbol and look at their performance. One year, three year, five year, ten year. And I was almost shocked to see 1% to 2% average returns. This isn’t me producing. This is what they’ve averaged returns over the last 10 years. That’s hard to grow a port. If you’re in a preservation of capital mode, I suppose it’s okay. But this was a fairly young couple. And they have 60% of their portfolio in bond funds. I just don’t know that that’s serving them best, okay? If you want that more, you know, sure outcome, and if you want to be really conservative, I think you’re better off putting together a portfolio, which we do.
SPEAKER 01 :
Yeah, I mean, if you look at, you know, just say from mid-2022 to now, right, I mean, that, you know, that yield to maturity should have been and would likely be in that 5% to 6% range, right, over that time period versus, you just said, though. The AGG up 3.5% or so.
SPEAKER 04 :
Over the last 12 months and over the last 10 years, it’s averaged 1.2% per year.
SPEAKER 01 :
Yeah, and so you should, like I said, in terms of individual bonds, when we’re going out there and looking for those and trying to… our hurdle rate, right. As you’ve been in that, you know, call it five to 6%, uh, over the last, you know, uh, two, three years. And, uh, you know, so you can, you know, those individual bonds will just, you know, should serve you better because like I said, it’s a, it’s a known, it’s a known return versus, you know, you put your money in a bond fund and you’re hoping, right. That it does, you know, it does what it, you know, what it, what it should in times, certainly in times of crisis, but, uh,
SPEAKER 04 :
you know a lot of times when everybody runs for the for the door at the same time the bond fund gets hurt just like you know yeah well i mean to be fair there was a terrible year there in 2022 for bond funds uh which uh you know that was the year the fed went on the warpath it was such a bad year that the silicon valley bank is no longer around because they had a bulk of their money in long-term government treasuries that got slaughtered now Let’s fast forward to today. We’re always looking for new bond offerings. We do have an individual bond fund. That’s our alternative investment, okay? It’s not non-traded REITs. It’s not variable annuities. We’re not fans of those. That’s just us. We buy individual bonds and put together an individual bond fund, and I saw one today that’s a good example. Block. Block is the company formerly known as Square, which is Jack Dorsey’s other company. Of course, he was Twitter. And they’re doing a $1.2 billion offering at $5.625 billion. That’s a five-year bond. So you hold that year one. Now, it’s going to fluctuate a little, but not much. You’re not going to see the kind of volatility that you’re going to see in an NVIDIA or in a… or in a booking.com or whatever the stock may be, you’re going to see a little fluctuation, but it’s going to be tied to interest rate fluctuation. If you hold it over the next five years, 5.625%, and then, of course, if they’re still around, after five years you get your principal back. So that’s just a pretty known outcome. You’re not going to make 12% on it unless it goes way up, unless interest rates go way down in year one, and we sell it for a 12% profit, which is possible but not likely. So I’m just kind of showing you the difference. And, you know, I don’t know how many trillions are in bond funds. But with the prevalent asset allocation model in our industry today, they’re not buying individual bonds. We’re not finding that. We’re finding that that allocation to the bond market which is based on age, is being filled with bond funds rather than individual bonds.
SPEAKER 01 :
And I saw a stat, I think I told you last week, a survey of the big wire house firms, and they’re literally, I think, around 46%, 48% equities at the moment. So that means they’ve either got a lot of money in bonds or in cash on the sidelines, and you’ve still got some fuel left. for those dollars to potentially make it into the equity markets at some point.
SPEAKER 04 :
Yes, and we’ll just close with this. As signs of the time, I remember when the weed stocks, everybody wanted to own the weed stocks. I said, uh-uh, no, please. Tilray is seeking extension to regain NASDAQ compliance. They’re kind of the blue chip. And Windblade Maker, TPI Composite, seeks Chapter 11 protection as we’re switching from wind to nuclear. We’ll be right back. And welcome back here to the final segment of today’s Best Stocks Now show. One other point I just want to make before I leave this bond fund subject and move on to the stocks that have reported earnings today. I just checked the math, and I looked it up here. The AGG, you know, Barry, that thing has $129 billion in it. Okay. That’s just one bond fund. The bond funds are chock full of money. And, you know, what popularized the bond funds, I would say, would be the asset allocation model, the Harry Markowitz, you know, efficient frontier model, which basically, in a nutshell, Mr. CFA, Barry Kite, you know this, that it’s based on your age. I’m 72 years old, for instance. The Markowitz model, yes, says I should have 72% of my assets in bonds. Okay, I just checked the math. Now we can go back to inception of this fund. That’s 23 years, okay? It’s been around. And the average annual return since inception is, is 3.01% since inception. So now you’ve got to say to yourself, 3.09%, you have to say to yourself, are you going to be happy with that? I mean, it’s a likely outcome, okay? It’s not a for sure outcome. But, you know, that’s what you should expect. If you’ve got 60% of your allocation in bond funds, which we just met with a couple that did. 3.1%. Now, the government bond funds are just a little bit above that, IEF, the treasuries. So anyways, you just have to know, look at the track record of all of your holdings. And you have to say to yourself, look, if you just signed up a guy that’s got a lifetime batted average of 238, he’s probably not going to lead the league in hitting next year. Yeah. You’ve got a 238. When he comes up to the plate, he’s got one chance in four, a little less than that, of getting a single. to the right side. So I’m a statistician kind of guy. I’m a moneyball kind of guy. Numbers don’t lie. You know, I see salespeople can kind of stretch things a little bit and whatnot, but I think salespeople should understand what the track record is of things that they’re putting people into. And Maybe be transparent and say, look, here’s what you can expect. Here’s what it’s done over the last 23 years, 3%. I want to put 60% of your portfolio into bond funds, and here’s what you should expect from that. Okay, now, this company’s in the news today. It looks like Robinhood is in the news. That’s one of our holdings. Robinhood has been very good to us, very, very, very good to us. And Robinhood has reported earnings. Their sales were up 45% year-over-year. Take that, Johnson & Johnson, right? Their earnings were up 100% year-over-year. And, you know, you can compare that with the big brokerage firms. That’s what Robinhood is, basically, is a brokerage firm at the end of the day. They may not be as well-known as some of your bigger names like the Merrill Lynch’s and the… the Raymond James of the world, but that’s some pretty phenomenal growth. In fact, their last four quarters, their earnings are up 289%, 999%, 106%, and 100%. And has that shown up in the returns of the stock? Well, the old adage is, and I’ve proven it time and time again, is stocks follow earnings. And with triple digit returns, gains in earnings quarter by quarter, Robinhood is currently ranked 128 out of 5,117. It’s still a strong buy. It’s in our ultra-growth portfolio. And the performance of the stock over the last three years, it’s averaged 115% per year. I mean, it’s kind of led the league, I guess, in its division of financial investment, the segment. I don’t think it’s going to do those kind of returns going forward. But, you know, look, you’re putting this up against a bond fund of 3%. Yes, the risk is a lot greater. Over the last one year, Robinhood’s up 485% while the S&P’s up 21%. Now, that’s looking in the rearview mirror. We readily admit that. And that’s why I do five-year valuations on stocks. I take the growth rate. I take today’s earnings. I extrapolate the earnings out. I put a PE ratio, a multiple. It’s otherwise known as a multiple on those earnings. That’s how you value companies. You put multiples on what you think those future earnings can be. And I still see if they continue on this, you know, the track that they’re on and continue to grow, I think I’m using maybe 25% growth over the next five years. This stock still has a lot of upside potential as I look forward. So it still looks good looking backwards. It still looks good looking forwards. Having said that, I will say that we have trimmed our position a little bit. In the ultra-growth portfolio, it’s now 9% of that portfolio. I think it got up to 12%. And I took one-third of our holding off the table. And we still own the other shares. And now it’s still a large. It’s tripled since we bought it in March 12th of this year, Barry. So anyways, they don’t all pan out like that. Yes, we have stocks that go down. That’s the nature of the beast. But it just shows you the disparity between returns, the disparity between growth stocks versus 1% to 2% growers. You have to take that all into account and decide where you’re at on this. Everybody comes at it from a little different way, but I’m a guy that values growth. If you want to grow your portfolio, it just seems logical that you’re going to need some growth stocks in that portfolio. Okay, I think that’s about how we’re going to get to today. We’re out of time. There were a few other stocks. Foxconn reported earnings. Cisco reported earnings, which Cisco has seen better days. It’s still a good company, but as a stock, it can’t hold the candle to Arista Networks in today’s world, in my opinion, humble opinion. Okay, we’re out of time. To get a four-week trial to the do-it-yourself thing or to see our portfolios. We’re very transparent. You know, a lot of people, they want to do it themselves. Most people say, I don’t have the time to do it myself. We also manage portfolios for you. You can get an appointment with us. You can try the four-week trial. Go to our website at GundersenCapital.com or make an appointment. Set up an appointment with us at 855-611-BEST. 855-611-BEST. Have a great day, everybody.
SPEAKER 03 :
This show is not a solicitation to buy or sell any securities. Bill Gunderson or clients of Gunderson Capital Management may have long or short positions in stocks mentioned during the show. Past performance is not indicative of future performance. Gunderson Capital Management is a fee-based registered investment advisory firm. All accounts are held at Charles Schwab. Schwab is a member of SIPC and FINRA.
