Introduction to the Cara 100
Investment simply means the act of buying and selling a monetary asset such as cash, precious metals, stocks, bonds, exchange-traded funds, and mutual funds. We invest money in these assets either for income or capital appreciation based on our analysis of the lowest risk-highest potential reward. The prices of monetary assets are in constant flux, so there is always a matter of speculation in making buy and sell decisions, but there is a major difference between speculation and investment.
It has always been my belief that to invest in an asset, we must study and understand the asset, which requires an understanding of fundamental and quantitative analysis, which in turn requires a company to study, rather than a pool of companies held by a fund.
Before we trade the securities of a company, we must understand that analysis will show that there are relatively good companies (lowest risk among peers) and bad companies (highest risk among peers). There are shares of many companies held by a fund, which means that when we buy a fund we are speculating. Moreover, we must also appreciate that a fund holds investments in some bad companies, which is counter to the reason we invest.
To help investors in selecting a relatively small group of high-quality companies to study. I created the Cara 100 list. The components usually, but not always, are industry leaders in corporate fundamentals like balance sheet strength and operating performance like cash flow, margins, earnings, and possibly dividends. This list is free of the business and personal biases of sell-side investment analysts.
Due to evolving business and economic conditions, the financial condition and operating performance of companies are always in flux. Hence, the Cara 100 is always a work in progress. Because there are tens of thousands of companies whose shares trade on various stock exchanges, I try to select the Cara 100 from among the S&P 500 index components, each of which trades on a major US exchange. The S&P 500 index represents the largest investable pool of company stocks in the world. To monitor relative performance I am now developing a Cara 100 index, noting that, like the S&P 500, there will be changes over time made to the Cara 100.
As of September 30, 2021, this is the Cara 100 list of company stocks at finviz.com: click here.
The Cara 100 is a list of companies that we consider investment-grade for trading purposes but is not a recommendation to buy or sell. There are always times to buy and sell, and in order for a trade to occur, the buyer and the seller must agree on those times.
As you know from our blog and our Lessons publications, a company is not a price. We trade prices and seek to find the best times to buy and sell these fluctuating prices. Political and social developments in the world are constant and result in macro-economic changes that cause price fluctuations in all securities. Over time, price motion in market prices impacts the trends and cycles of these securities. I trade at times that I perceive there are reversals in price trends and cycles.
We hope you find value in our Cara 100 list of Good Companies. But, as market prices fluctuate, at times these Good Companies will also be Good Stocks (i.e., with Trends and Cycles that are rising), and at times they will be Bad Stocks (i.e., with Trends and Cycles that are falling). So investing requires price and volume technical analysis. In my practice, I try to buy at times the price is low and sell when the price is high. Your trading system may be different. For example, you may buy high, especially on breakouts from a recent trading range, and sell higher, at a profit.
Suffice to say that each of us has our own research methodologies and trading systems. However, do not ignore the fact that successful investing is a matter of finding and understanding good companies (such as the Cara 100) and then trading the good stocks among those good companies
Here is the full excel file of Cara 100 Companies as at September 30, 2021:
Symbol | Company | Sector | Industry | Country | Market Cap |
---|---|---|---|---|---|
AAPL | Apple Inc. | Technology | Computers, Phones & Household Electronics | USA | 2459.52B |
ACHV | Achieve Life Sciences, Inc. | Healthcare | Biotech & Medical Research | Canada | 75.27M |
AG | First Majestic Silver Corp. | Basic Materials | Metals & Mining -- Silver | Canada | 3.10B |
AGI | Alamos Gold Inc. | Basic Materials | Metals & Mining -- Gold | Canada | 3.71B |
AKRO | Akero Therapeutics, Inc. | Healthcare | Biotech & Medical Research | USA | 832.82M |
AL | Air Lease Corporation | Industrials | Professional & Commercial Services | USA | 4.42B |
ALGT | Allegiant Travel Company | Industrials | Airlines | USA | 3.52B |
ALK | Alaska Air Group, Inc. | Industrials | Airlines | USA | 7.14B |
ALLO | Allogene Therapeutics, Inc. | Healthcare | Biotech & Medical Research | USA | 3.48B |
AMAT | Applied Materials, Inc. | Technology | Semiconductors & Semi Equipment | USA | 130.10B |
AMRS | Amyris, Inc. | Basic Materials | Chemicals | USA | 4.12B |
AMZN | Amazon.com, Inc. | Consumer Cyclical | Internet Retail | USA | 1766.58B |
APLS | Apellis Pharmaceuticals, Inc. | Healthcare | Pharmaceuticals | USA | 2.96B |
ARVN | Arvinas, Inc. | Healthcare | Biotech & Medical Research | USA | 4.96B |
ATVI | Activision Blizzard, Inc. | Communications | Electronic Gaming & Multimedia | USA | 61.66B |
AVAH | Aveanna Healthcare Holdings Inc. | Healthcare | Healthcare Providers & Services | USA | 1.61B |
AVIR | Atea Pharmaceuticals, Inc. | Healthcare | Biotech & Medical Research | USA | 2.25B |
BAM | Brookfield Asset Management Inc. | Financial | Investment Banking & Investment Services | Canada | 86.52B |
BBIO | BridgeBio Pharma, Inc. | Healthcare | Pharmaceuticals | USA | 7.39B |
BCEI | Bonanza Creek Energy, Inc. | Energy | Oil & Gas -- Production | USA | 1.35B |
BKR | Baker Hughes | Energy | Oil & Gas -- Equip. & Services | USA | 25.43B |
BMRA | Biomerica, Inc. | Healthcare | Diagnostics & Research | USA | 52.50M |
BTG | B2Gold Corp. | Basic Materials | Metals & Mining -- Gold | Canada | 3.84B |
CHE | Chemed Corporation | Healthcare | Healthcare Providers & Services | USA | 7.52B |
CMPS | COMPASS Pathways plc | Healthcare | Healthcare Providers & Services | UK | 1.39B |
CNQ | Canadian Natural Resources Limited | Energy | Oil & Gas -- Production | Canada | 40.96B |
COP | ConocoPhillips | Energy | Oil & Gas -- Production | USA | 79.31B |
CRBU | Caribou Biosciences, Inc. | Healthcare | Biotech & Medical Research | USA | 1.66B |
CRM | salesforce.com, inc. | Technology | Software -- Application | USA | 254.89B |
CRMD | CorMedix Inc. | Healthcare | Pharmaceuticals | USA | 178.21M |
CRWD | CrowdStrike Holdings, Inc. | Technology | Software -- Infrastructure | USA | 60.41B |
CVX | Chevron Corporation | Energy | Oil & Gas -- Integrated | USA | 188.21B |
DAR | Darling Ingredients Inc. | Consumer Defensive | Food & Tobacco | USA | 12.46B |
DIN | Dine Brands Global, Inc. | Consumer Cyclical | Restaurants | USA | 1.39B |
DIS | The Walt Disney Company | Communications | Entertainment | USA | 333.15B |
DOOO | BRP Inc. | Consumer Cyclical | Leisure Products | Canada | 3.79B |
EAF | GrafTech International Ltd. | Industrials | Machinery, Equipment & Components | USA | 2.90B |
EPD | Enterprise Products Partners L.P. | Energy | Oil & Gas -- Midstream | USA | 48.49B |
EQT | EQT Corporation | Energy | Oil & Gas -- Production | USA | 7.32B |
ERF | Enerplus Corporation | Energy | Oil & Gas -- Production | Canada | 1.68B |
FANG | Diamondback Energy, Inc. | Energy | Oil & Gas -- Production | USA | 14.50B |
FCX | Freeport-McMoRan Inc. | Basic Materials | Metals & Mining -- Copper | USA | 50.35B |
FLXN | Flexion Therapeutics, Inc. | Healthcare | Pharmaceuticals | USA | 324.40M |
FSS | Federal Signal Corporation | Industrials | Machinery, Equipment & Components | USA | 2.37B |
GH | Guardant Health, Inc. | Healthcare | Diagnostics & Research | USA | 12.86B |
GIL | Gildan Activewear Inc. | Consumer Cyclical | Textiles & Apparel | Canada | 7.52B |
GROY | Gold Royalty Corp. | Basic Materials | Metals & Mining -- Royalty & Streaming | Canada | 215.18M |
HBM | Hudbay Minerals Inc. | Basic Materials | Metals & Mining -- Copper | Canada | 1.98B |
HUBS | HubSpot, Inc. | Technology | Software -- Application | USA | 33.05B |
IAC | IAC/InterActiveCorp | Communications | Internet Content & Information | USA | 12.38B |
KGC | Kinross Gold Corporation | Basic Materials | Metals & Mining -- Gold | Canada | 7.03B |
KRTX | Karuna Therapeutics, Inc. | Healthcare | Biotech & Medical Research | USA | 3.41B |
LEVI | Levi Strauss & Co. | Consumer Cyclical | Textiles & Apparel | USA | 10.28B |
LUV | Southwest Airlines Co. | Industrials | Airlines | USA | 29.06B |
MA | Mastercard Incorporated | Financial | Banking Credit Services | USA | 341.73B |
MED | Medifast, Inc. | Consumer Cyclical | Food & Tobacco | USA | 2.53B |
MGTX | MeiraGTx Holdings plc | Healthcare | Pharmaceuticals | USA | 576.47M |
MHO | M/I Homes, Inc. | Consumer Cyclical | Homebuilding & Construction Supplies | USA | 1.82B |
MPC | Marathon Petroleum Corporation | Energy | Oil & Gas -- Midstream | USA | 37.72B |
MRNS | Marinus Pharmaceuticals, Inc. | Healthcare | Pharmaceuticals | USA | 424.63M |
MRTN | Marten Transport, Ltd. | Industrials | Freight & Logistics Services | USA | 1.30B |
MTDR | Matador Resources Company | Energy | Oil & Gas -- Production | USA | 3.64B |
MTZ | MasTec, Inc. | Industrials | Construction & Engineering | USA | 6.71B |
NESR | National Energy Services Reunited Corp. | Energy | Oil & Gas -- Equip. & Services | USA | 1.09B |
NVDA | NVIDIA Corporation | Technology | Semiconductors & Semi Equipment | USA | 556.05B |
NXE | NexGen Energy Ltd. | Energy | Metals & Mining -- Uranium | Canada | 3.48B |
OSK | Oshkosh Corporation | Industrials | Machinery, Equipment & Components | USA | 7.47B |
PATK | Patrick Industries, Inc. | Industrials | Homebuilding & Construction Supplies | USA | 1.89B |
PAYA | Paya Holdings Inc. | Technology | Professional & Commercial Services | USA | 1.43B |
PDCE | PDC Energy, Inc. | Energy | Oil & Gas -- Production | USA | 4.43B |
PRPL | Purple Innovation, Inc. | Consumer Cyclical | Household Goods | USA | 1.51B |
PRTS | CarParts.com, Inc. | Consumer Cyclical | Specialty Retailers | USA | 888.77M |
RIOT | Riot Blockchain, Inc. | Technology | Financial Technology (Fintech) & Infrastructure | USA | 2.82B |
RNG | RingCentral, Inc. | Technology | Software -- Application | USA | 20.55B |
RTX | Raytheon Technologies Corporation | Industrials | Aerospace & Defense | USA | 126.69B |
SDGR | Schrodinger, Inc. | Healthcare | Health Information Services | USA | 4.33B |
SGH | SMART Global Holdings, Inc. | Technology | Semiconductors & Semi Equipment | USA | 1.21B |
SMCI | Super Micro Computer, Inc. | Technology | Computers, Phones & Household Electronics | USA | 1.84B |
SMP | Standard Motor Products, Inc. | Consumer Cyclical | Autos & Auto Parts | USA | 912.87M |
SSRM | SSR Mining Inc. | Basic Materials | Metals & Mining -- Gold | Canada | 3.27B |
STLA | Stellantis N.V. | Consumer Cyclical | Autos & Auto Parts | Netherlands | 61.94B |
TECK | Teck Resources Limited | Basic Materials | Metals & Mining -- Copper | Canada | 13.78B |
TFX | Teleflex Incorporated | Healthcare | Healthcare Equipment & Supplies | USA | 18.06B |
TPTX | Turning Point Therapeutics, Inc. | Healthcare | Biotech & Medical Research | USA | 3.88B |
TSEM | Tower Semiconductor Ltd. | Technology | Semiconductors & Semiconductor Equipment | Israel | 3.36B |
TSP | TuSimple Holdings Inc. | Industrials | Trucking | USA | 7.89B |
TWLO | Twilio Inc. | Communications | Internet Content & Information | USA | 61.26B |
UBER | Uber Technologies, Inc. | Technology | Software -- Application | USA | 74.47B |
UCTT | Ultra Clean Holdings, Inc. | Technology | Semiconductors & Semi Equipment | USA | 2.14B |
UEC | Uranium Energy Corp. | Energy | Metals & Mining -- Uranium | USA | 828.01M |
UROY | Uranium Royalty Corp. | Energy | Metals & Mining -- Uranium | Canada | 360.31M |
V | Visa Inc. | Financial | Banking Credit Services | USA | 477.11B |
VFF | Village Farms International, Inc. | Consumer Defensive | Cannabis | Canada | 955.74M |
VIR | Vir Biotechnology, Inc. | Healthcare | Biotech & Medical Research | USA | 6.87B |
VRNT | Verint Systems Inc. | Technology | Software & IT Services | USA | 2.93B |
VSTO | Vista Outdoor Inc. | Consumer Cyclical | Leisure Products | USA | 2.37B |
WFG | West Fraser Timber Co. Ltd. | Basic Materials | Lumber & Wood Production | Canada | 10.46B |
WPM | Wheaton Precious Metals Corp. | Basic Materials | Metals & Mining -- Royalty & Streaming | Canada | 18.74B |
ZBH | Zimmer Biomet Holdings, Inc. | Healthcare | Software -- Application | USA | 30.54B |
ZEN | Zendesk, Inc. | Technology | Freight & Logistics Services | USA | 15.06B |