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3 Stocks to Buy From the World's Greatest Growth Portfolio

Brian Stoffel
September 5, 2012

You might not know it from the discontent you hear coming from certain folks, but the stock market has actually had a pretty good year so far, returning 11.7%. There's absolutely nothing wrong with returns like that.

And yet, if you had followed used my hypothetical "World's Greatest Growth Portfolio" as a guide, you would be up 25.2%. It's only been eight months, so I'm not declaring victory any time soon, but the results speak for themselves.

Below, I'll tell you what to keep your eye on in September, identify three stocks that I think are buys right now, and offer access to a special premium report on some of the stocks in my portfolio.


Company Allocation Jan. 1 balance Current balance Change
Intuitive Surgical (Nasdaq: ISRG  ) 11.5%  $115.00  $120.64 4.9%
Google (Nasdaq: GOOG  ) 11.5%  $115.00  $118.34 2.9% 11.5%  $115.00  $159.39 38.6%
Whole Foods 11.5%  $115.00  $160.54 39.6%

Tier One

lululemon athletica 7.5%  $75.25  $104.30 38.6%
Apple (Nasdaq: AAPL  ) 7.5%  $75.25  $121.68 61.7%
Westport Innovations (Nasdaq: WPRT  ) 7.5%  $75.25  $80.44 6.9%
IPG Photonics 7.5%  $75.25  $130.94 74.0%

Tier Two

Baidu (Nasdaq: BIDU  ) 5%  $50.00  $44.85 (10.3%)
Zipcar 5%  $50.00  $28.15 (43.7%)
Stratasys 5%  $50.00  $103.95 107.9%
MAKO Surgical 5%  $50.00  $29.15 (41.7%)
Solazyme 5%  $50.00  $49.85 (0.3%)
Total 100%  $1,000.00  $1,252.20 25.2%

Source: Starting balance of $1,000 is used to easily illustrate returns.

Apple and IPG Photonics have helped the portfolio improve the most since last month. IPG benefited from investors becoming more confident in the company's disruptive set of fiber-optic lasers after positive earnings came in. And though Apple may have missed expectations, the iPhone 5 is just around the corner, and the company's victory against Samsung was good news, too.

Westport Innovations' earnings also offered up reassuring news in August, beating analyst estimates for both earnings and revenue. A recent release of federal guidelines for automobile efficiency also provided a boost for the company, which designs engines that can run solely on natural gas, or a combination of both natural gas and petroleum-based fuel.

Looking ahead, I'll be keeping a close eye on the one company that should be reporting earnings during September as well.

Company Earnings Date Expected EPS Expected Revenue
Lululemon September 7 $0.31 $282 million

Sources: Thompson Reuters, E*Trade.

3 best buys
First on my list of best buys for the month is a company I just vowed to put my real money behind: Baidu -- for the second time this year. You can read a more in-depth analysis of why I've bought twice by clicking the links above. Here's the shorte