3 Buy-Now Stocks from the "World's Greatest Growth Portfolio"

In January 2012, I identified 13 stocks that would comprise an ideal growth portfolio. Since then, investors following along with me have turned $10,000 into $13,930 -- a 39.3% increase, and $1,280 -- or 12.8 percentage points -- better than if they had just invested the money in the S&P 500.

Every month, I look over these stocks to see which three are tempting. I call these my "Buy Now" stocks because I think they're pretty good deals. Read the chart below to see how the whole portfolio has performed, check out my best buys and, at the end, I'll offer up access to a special premium report on one of the 13 stocks included.

Core

Company

Allocation

Jan. 1 Balance

Current balance

Change

Baidu

11.5%

 $115.00

 $102.35

(11%)

Google

11.5%

 $115.00

 $144.10

25.3%

Amazon.com

11.5%

 $115.00

 $130.18

13.2%

Whole Foods

11.5%

 $115.00

 $133.75

16.3%

Tier One

Starbucks

7.5%

 $75.25

 $94.44

25.5%

Apple

7.5%

 $75.25

 $59.52

(20.9%)

Intuitive Surgical

7.5%

 $75.25

 $76.68

1.9%

IPG Photonics

7.5%

 $75.25

 $67.05

(10.9%)

Tier Two

3D Systems (NYSE: DDD)

5%

 $50.00

 $63.45

26.9%

LinkedIn (NYSE: LNKD)

5%

 $50.00

 $81.95

63.9%

Stratasys (NASDAQ: SSYS)

5%

 $50.00

 $52.60

5.2%

Westport Innovations

5%

 $50.00

 $60.10

20.2%

lululemon athletica (NASDAQ: LULU)

5%

 $50.00

 $42.30

(15.4%)

 

       

Year-to-date

 

 $1,000.00

 $1,108.46

10.8%

Returns Since Inception

     

39.3%

Source: YCharts. All numbers accurate as of market open, July 5, 2013. Dividends not included, as this is a growth portfolio focused on capital appreciation.

Stratasys
First on my list of "buy now" stocks is one half of the duopoly in 3-D printing, with 3D Systems -- another company in this portfolio -- representing the other half. In truth, there are many other smaller players in the field as well, but they are slowly being bought out by the Big Two.

Case in point: Earlier this year, Stratasys merged with Isreali-based Objet. The new company solidified Stratasys' leading position in making 3-D printers for use by industrial customers. While I liked that move, I think the company's most recent purchase of consumer-facing Makerbot is even more interesting

3D Systems and its CubeX printer have dominated the consumer printing market, but combining Makerbot's Replicator with Stratasys' financial backing could mean that things are going to start to heat up in this industry.

Although Stratasys shares are pretty expensive right now, I see its market cap easily doubling (or more) in the next decade if it can keep up the positive momentum.

lululemon athletica
This retailer, which got its start by offering yoga-wear to athletic-minded women but has now branched out, had a recent earnings report that by most measures was solid. Why, then, did it drop so harshly?

Because CEO Christine Day, who has led the company during an impressive growth spurt over the past five years, announced that she will resign when a replacement is found.

I'm a big fan of Christine Day, and think her loss is important for investors to take note of. However, given the stock's 20% sell-off, I think much of the risk associated with Day leaving has already been priced in. What we're left with is a company that has a great brand and a solid growth story. With Day likely having a hand in finding her replacement, I think Lulu's shares are worth looking into right now.

LinkedIn
While there isn't necessarily any new news to add to LinkedIn's story, I think it has the potential to be one of the great growth stories of the 21st century. The company has three revenue streams -- one based on helping companies fill openings, one based on helping individuals find jobs, and one based on advertising -- that are all growing by more than 50% per year.

At its highest potential, LinkedIn could disrupt the HR departments at companies worldwide, allowing for cheaper, more efficient, and streamlined recruiting. While I think the price point earlier this month of about $160 per share was more tempting, I fully plan on adding small portions of LinkedIn to my Roth IRA as the company's story continues to unfold.

One that was left off ...
One company left off the list that I still like is Apple.  The company has a history of cranking out revolutionary products ... and then creatively destroying them with something better. Read about the future of Apple in the free report, "Apple Will Destroy Its Greatest Product." Can Apple really disrupt its own iPhones and iPads? Find out by clicking here.


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Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On July 06, 2013, at 5:53 PM, rontay21 wrote:

    These stocks have shown to be smart investments but majority of them are much to volitle. Especially company such as apple which in May saw numbers at 450 a share have now dropped to around 410 a share within just a months time. Its smarter to invest in successful companys that have a steady gain more along the lines of companies like the Altria group (MO) who have created companies like Kraft and Marblo cigerttes people have seen increase in profits up to 300% in just a few years. Most of the wealither stock holders are invested in this stock

  • Report this Comment On July 06, 2013, at 7:34 PM, TMFCheesehead wrote:

    @rontay21-

    This portfolio is design to go after companies that focus on innovation. These same companies can often be volatile. To see my portfolio made up of somewhat less-volatile players, please see

    http://www.fool.com/investing/general/2013/07/01/3-buy-now-s...

    Brian Stoffel

  • Report this Comment On July 07, 2013, at 10:59 AM, tester1954 wrote:

    I apologize if this is unkind, but I really don't see why I would want advice on how to "compromise" my growth portfolio. It's been compromised enough.

  • Report this Comment On July 08, 2013, at 2:17 PM, TMFCheesehead wrote:

    @tester-

    Haha, good catch. Not unkind at all.

    Brian Stoffel

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