Earnings season is in full swing for the Wealth Builders Portfolio, with 11 of our 17 holdings having reported first-quarter results and hosted their conference calls with analysts.
This influx of company-specific data and color from management gives us an opportunity to revisit our investment theses and identify emerging risks and opportunities that could drive or impede future earnings growth.
In recent issues, we’ve taken profits on two of our big winners, Adobe Systems (NSDQ: ADBE) and BorgWarner (NYSE: BWA), but most of the Portfolio’s remaining holdings repaid our faith by posting solid results.
And the few disappointments have all the markings of temporary hiccups, not precursors to a major unraveling or an extended slide.
As for our overall portfolio strategy, we continue to favor cyclical sectors such as energy, industrials, basic materials and consumer discretionary–all of which stand to benefit from the strengthening US economy.
In the coming weeks, we’ll look to add another information technology name or two to the Wealth Builders Portfolio and round out our energy exposure with a stock that stands to benefit from the growing glut of light-sweet crude oil on the US Gulf Coast.
For now, here’s our take on how our Portfolio holdings have fared thus far.