The following article is part of The Motley Fool's "Stock Madness 2006," based loosely on the annual NCAA College Basketball Tournament, a.k.a. "March Madness." Throughout the competition, our writers and analysts will engage in head-to-head competition. You, dear readers, are the fans and referees -- after you read these exciting duels, your votes will determine who moves on to the next round of play. The writer who survives the tournament will be our champion and most valuable "coach."
But please, make no mistake -- "Stock Madness 2006" is a GAME!
A great basketball team consists of two key elements -- the core deep-bench players and a few on the roster who can hit the three-pointers. The same goes for a great portfolio -- you need the deep bench to stabilize your returns over volatile business cycles, but you need the stocks that aren't afraid to fly high when it comes to generating great returns.
Taking that strategy to heart, I created a portfolio that has consistent value players as well as small caps that can hit the threes from across the court. This portfolio just screams victory.
Google
News Corp.
Martha Stewart Living Omnimedia
Elizabeth Arden
Finally, Spectranetics
Stephen Simpson's rebuttal
Since I think I've already made my case for my mini-portfolio, let's see whether we can chip away at my esteemed opponent's list.
Google -- down 25% from its highs, still trading at more than 16 times sales, and still competing with Microsoft
As for the others, you have a risky med-tech stock (which I used to cover as an analyst), two companies run by egomaniacs, and a company in the popular-today/forgotten-tomorrow world of cosmetics. Where's the inevitability? Where are the dividends?
Microsoft is a Motley Fool Inside Value recommendation. For more of the market's best bargain stocks, take Inside Value for a free, 30-day trial run.
Will Shruti's superstars win out over Stephen's balanced attack? It's your call -- read up on Stephen's team, and cast your votes!
Fool research analyst Shruti Basavaraj owns shares of Elizabeth Arden and Spectranetics. Fool contributor Stephen Simpson has no financial interest in any of the stocks mentioned. The Motley Fool has a disclosure policy.