My Investment Shopping Cart

Bill Parrott |

Peter Lynch, the legendary portfolio manager of the Fidelity Magellan Fund,  said, “Buy what you know.” As a result, I created my shopping cart investment portfolio consisting of twenty companies my family and I use often. And, like a regular shopping experience, I substituted some products because others weren’t available. My local grocery store is privately held HEB, so I added Kroger as a replacement.

Here are the companies in my shopping cart:

  • Alphabet
  • Amazon
  • Anheuser-Busch
  • Apple
  • AT&T
  • Clorox
  • Coca-Cola
  • Costco
  • General Mills
  • Home Depot
  • Honda Motor
  • Johnson & Johnson
  • Kroger
  • Netflix
  • P&G
  • Starbuck’s
  • Target
  • Twitter
  • UPS
  • Walgreen’s

The portfolio is down 4.62% year-to-date, while the S&P 500 has lost 6.04%. Last year, it was up 19.79%, and the S&P climbed 28.71%. Over the past 3-, 5-, and 10-year periods, the shopping cart portfolio has averaged 17%, slightly ahead of the S&P 500, which returned 16%. The current yield for the portfolio is 2.18%.

The shopping cart portfolio has captured 96% of the upside and 74% of the downside for the past decade, relative to the S&P 500. The capture ratio is 1.29, outperforming the market.

Chart, line chart

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If you’re looking to cook up a sizzling portfolio, throw some household names in your shopping cart.

April 21, 2022

Note: Past performance is no guarantee of future performance.