Stock Recommendations:

Cornerstone does not maintain a recommended stock list, but Cornerstone does maintain  recommendations related to methodologies for holding stocks.  First, we do not recommend holding stocks for the vast majority of investors.  As stated in our Investment Philosophy, we believe the markets are extremely efficient and it is difficult to assemble a portfolio that can beat the market as represented by a diversified, low-cost index fund.  Nevertheless, there are reasons for having a disciplined approach to stocks.

We believe that a low-turnover diversified portfolio of high-quality large and mid-cap stocks with the capacity to grow dividends can make sense.  For one thing, this portfolio can be extremely tax efficient and can be tailored for charitable gifting and estate planning.  There can also be a place for speculative names if you have the time and perspective.  A stock portfolio with strong/growing dividends can also make sense in an environment where the prospects for bonds/fixed income is problematic.  There are other situations including situations where stocks are inherited, etc.  It is important to remember that academic studies show you need to hold 30 stocks for sufficient diversification.

To hold stocks, you need to have the following:

-A clearly articulated investment philosophy.

-Discipline to avoid selling stocks in major declines.

-The capability and the time to rebalance your overall portfolio.

-Significant time to research your purchases, and you need a Sell Discipline.

-The time to monitor your stock holdings.

You also need credible sources of research and ratings services.  We recommend Schwab Equity Ratings based on their methodology and their strong performance.  Cornerstone also tracks other stock graders and can make recommendations.

This site will be expanded in the future.  Contact Jeff Johnson for further information.