When choosing the 60 or so companies in the portfolio, Brady begins by looking very broadly at the whole economy and identifying sectors that look like they'll grow faster than the rest. He looks at all 10,000 or so public companies traded in the U.S.He avoids energy, utility and consumer cyclical stocks. He likes technology, telecommunications, financial services, and health care. He then picks about 150 companies within those sectors that look they'll be outperforming their peers. I'm really more concerned with the sustainability of the growth.
Stocks only go into the portfolio if the reward significantly outweigh the universe.
Then he does the fundamental analysis, picking out companies with the business plans and visions. That brings it down to the 60 companies that end up being the Young Investor Fund. Because the fund is aimed at kids, or rather, for parents and relatives who want to give their kids a jump on investing, Young Investor has an educational component. Time Inc. New Media.