We’re making some changes to what we consider the core holdings in Jim Cramer’s Charitable Trust, the portfolio we use for the Investing Club. While dominance is being tested for some leading names, others are forging ahead as leaders in their respective industries. Alphabet (GOOGL) is in the doghouse for not exhibiting cost discipline while failing to outline a clear artificial intelligence strategy. Nvidia (NVDA), on the other hand, has been able to rise to the occasion by showcasing its integral leadership in AI through its essential high-powered technologies. That’s why Alphabet is coming out of our core holding list and Nvidia is taking its place. Similarly, we’re swapping Honeywell (HON) for Linde (LIN). The bottom line here: Honeywell is going through a CEO transition and we can’t keep labeling it as a core until we know what plans incoming CEO Vimal Kapur has in store. For Linde, the industrial gas and engineering giant has exciting future prospects in its clean energy initiatives. Since we’re in the thick of earnings season, we want to remind everyone that some companies on this list may disappoint. We try to avoid those situations, but it’s inevitable when you own 35 stocks that range across many different industries. More importantly, we don’t consider these stocks as short-term trades. Core holdings are companies we like for the long term, due to their high-quality and best-of-breed characteristics. Here are some of the qualities we look for in a core holding. Must be the No. 1 or No. 2 operator in its industry Great management teams with deep benches and strong track records of creating shareholder value Significant cash flow generation and strong balance sheets History of annual dividend increases and/or share repurchases that put money into shareholders’ pockets in the form of cash or value appreciation As detailed in Tuesday’s Monthly Meeting of the Club, here’s an overhaul of our 10 core holdings, starting with our newest additions and full…
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