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Lee Ainslie’s Best-Performing Stocks
Posted by: Arbitrage Situations (IP Logged)
Date: July 17, 2012 09:27AM
Lee Ainslie is known to be a fairly straightforward kind of guy; he likes to keep his investing nice and simple. This has certainly been the trend with some of his biggest holdings.
One investment that Ainslie will be sleeping soundly over is Dollar General Corporation (DG). Dollar General Corporation is having a great year and their wins in the market match their success in business. A U.S.- based store chain, it could be said Dollar General has partially monopolized the variety store market. Trading in over 40 U.S. states, Dollar General Corp. operates over 10,000 stores. A far stretch from their humble beginnings as a single store in Kentucky in the '50s, Dollar General’s can now be found in strip malls and neighborhoods all over the U.S. Ainslie might not be concerned about their history, but one thing he will be watching is their future. Dollar General Corporation is currently up 60% overall for the past year.
He also invested in another discount store that performed well in the last 12 months. Family Dollar Stores (FDO) is up over 30% in the last 12 months. It has a similar story to Dollar General — earnings growth and same store sales growth throughout their stores in the U.S.
Another excellent stock in the past year for Ainslie has been CVS Caremark Corporation (CVS). CVS Caremark Corporation is said to be one of the largest companies in the U.S. A drug retailing company, CVS Caremark provides pharmaceuticals to drug stores across the U.S., as well as offering a large online pharmacy and healthcare facility. With a long history dating back to 1963, CVS Caremark has certainly worked its way up the pharmaceutical ladder — so much so, that in 2010 they appeared on the Fortune 500 and now own several other health-related brands. Ainslie is enjoying a nice little yearly return of 27.66% and has watched CVS Caremark steadily grow in the market since December 2011. As they say, there is always money in drugs.
Last, but by no means least, Ainslie has a large portion, 4.4% of his total portfolio, invested in Apple Inc. (AAPL). We all know who Apple is — just that little company that makes Macintosh, the iPod, iPhone and the iPad. Making a hugely inspiring comeback with the iPod, following a very rocky patch prior to 2007, Apple has been a solid investment for Ainslie. We can’t confirm whether Ainslie uses an iPhone, but we can certainly assume he is fond of Apple, given the returns on their stocks this past year. It has been a mostly steady incline up for Apple since December of last year, and they certainly aren’t shy to boast a 72.33% overall increase since July 2011.
All investors take a chance on the stock market; that’s the nature of the game and perhaps a large part of the thrill. Ainslie is certainly no exception. While his tactics might be simple but they work quite well. These investments have definitely worked in Ainslie’s favor.
Guru Discussed: Lee Ainslie: Current Portfolio, Stock Picks
Stocks Discussed: DG, FDO, CVS, AAPL,