Introduction to the Cara 100

Investment simply means the act of buying and selling of 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 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) and bad companies (highest risk). There are many companies held by a fund, which means that when we buy shares of 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 is 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 selected the Cara 100 from 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 October 31, 2020, this is the Cara 100 list of company stocks at finviz.com:

https://finviz.com/screener.ashx?v=111&t=A,AAPL,ABC,ABMD,ACN,ADBE,ADI,AJG,AKAM,AL,ALGN,AMAT,AMD,AMED,AMGN,AMZN,APD,APH,ASGN,ATVI,AVY,AXP,BAX,BBY,BCC,BLD,BLK,BMY,BSX,CACI,CDNS,CHE,CNC,COST,CPRT,CRSP,CRUS,CSCO,CVX,DAVA,DG,DIS,DOV,EA,EL,EPAM,EQIX,EW,EXPO,FB,FCX,FLT,FSS,FTNT,GOOG,HON,HUBB,ICE,IDXX,INFO,INTC,ISRG,JNJ,KEYS,LHX,LLY,LMT,LOW,LRCX,MA,MCO,MNST,MPWR,MRNA,MRTN,MSFT,MU,NEM,NFLX,NOC,PEP,PYPL,QCOM,REGN,SNPS,SPSC,SWKS,TDY,TFX,TJX,TSCO,TTWO,TYL,ULTA,UNH,UPS,V,VEEV,VRTX,WST&r=81

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 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



Ticker Company Sector Industry
A Agilent Technologies, Inc. Healthcare Diagnostics & Research
AAPL Apple Inc. Technology Consumer Electronics
ABC AmerisourceBergen Corp Healthcare Medical Distribution
ABMD Abiomed, Inc. Healthcare Medical Devices
ACN Accenture plc Technology Information Technology Services
ADBE Adobe Inc. Technology Software – Infrastructure
ADI Analog Devices, Inc. Technology Semiconductors
AJG Arthur J. Gallagher & Co. Financial Insurance Brokers
AKAM Akamai Technologies, Inc. Technology Software – Infrastructure
AL Air Lease Corp Industrials Rental & Leasing Services
ALGN Align Technology, Inc. Healthcare Medical Devices
AMAT Applied Materials, Inc. Technology Semiconductor Equipment & Materials
AMD Advanced Micro Devices, Inc. Technology Semiconductors
AMED Amedisys, Inc. Healthcare Medical Care Facilities
AMGN Amgen Inc. Healthcare Drug Manufacturers – General
AMZN Amazon.com, Inc. Consumer Cyclical Internet Retail
APD Air Products and Chemicals, Inc. Basic Materials Chemicals
APH Amphenol Corp Technology Electronic Components
ASGN ASGN Inc. Industrials Staffing & Employment Services
ATVI Activision Blizzard, Inc. Communication Services Electronic Gaming & Multimedia
AVY Avery Dennison Corp Industrials Business Equipment & Supplies
AXP American Express Co Financial Credit Services
BAX Baxter International Inc. Healthcare Medical Instruments & Supplies
BBY Best Buy Co., Inc. Consumer Cyclical Specialty Retail
BCC Boise Cascade Co Basic Materials Lumber & Wood Production
BLD TopBuild Corp. Industrials Engineering & Construction
BLK BlackRock, Inc. Financial Asset Management
BMY Bristol-Myers Squibb Co Healthcare Drug Manufacturers – General
BSX Boston Scientific Corp Healthcare Medical Devices
CACI CACI International Inc Technology Information Technology Services
CDNS Cadence Design Systems, Inc. Technology Software – Application
CHE Chemed Corp Healthcare Medical Care Facilities
CNC Centene Corp Healthcare Healthcare Plans
COST Costco Wholesale Corp Consumer Defensive Discount Stores
CPRT Copart, Inc. Industrials Specialty Business Services
CRSP CRISPR Therapeutics AG Healthcare Biotechnology
CRUS Cirrus Logic, Inc. Technology Semiconductors
CSCO Cisco Systems, Inc. Technology Communication Equipment
CVX Chevron Corp Energy Oil & Gas Integrated
DAVA Endava plc Technology Software – Infrastructure
DG Dollar General Corp Consumer Defensive Discount Stores
DIS The Walt Disney Co Communication Services Entertainment
DOV Dover Corp Industrials Specialty Industrial Machinery
EA Electronic Arts Inc. Communication Services Electronic Gaming & Multimedia
EL The Estee Lauder Companies Inc. Consumer Defensive Household & Personal Products
EPAM EPAM Systems, Inc. Technology Information Technology Services
EQIX Equinix, Inc. (REIT) Real Estate REIT – Specialty
EW Edwards Lifesciences Corp Healthcare Medical Devices
EXPO Exponent, Inc. Industrials Consulting Services
FB Facebook, Inc. Communication Services Internet Content & Information
FCX Freeport-McMoRan Inc. Basic Materials Copper
FLT FLEETCOR Technologies, Inc. Technology Information Technology Services
FSS Federal Signal Corp Industrials Pollution & Treatment Controls
FTNT Fortinet, Inc. Technology Software – Infrastructure
GOOG Alphabet Inc. Communication Services Internet Content & Information
HON Honeywell International Inc. Industrials Specialty Industrial Machinery
HUBB Hubbell Inc. Industrials Electrical Equipment & Parts
ICE Intercontinental Exchange, Inc. Financial Financial Data & Stock Exchanges
IDXX IDEXX Laboratories, Inc. Healthcare Diagnostics & Research
INFO IHS Markit Ltd. Industrials Consulting Services
INTC Intel Corp Technology Semiconductors
ISRG Intuitive Surgical, Inc. Healthcare Medical Instruments & Supplies
JNJ Johnson & Johnson Healthcare Drug Manufacturers – General
KEYS Keysight Technologies, Inc. Technology Scientific & Technical Instruments
LHX L3Harris Technologies, Inc. Industrials Aerospace & Defense
LLY Eli Lilly and Co Healthcare Drug Manufacturers – General
LMT Lockheed Martin Corp Industrials Aerospace & Defense
LOW Lowe’s Companies, Inc. Consumer Cyclical Home Improvement Retail
LRCX Lam Research Corp Technology Semiconductor Equipment & Materials
MA Mastercard Inc. Financial Credit Services
MCO Moody’s Corp Financial Financial Data & Stock Exchanges
MNST Monster Beverage Corp Consumer Defensive Beverages – Non-Alcoholic
MPWR Monolithic Power Systems, Inc. Technology Semiconductors
MRNA Moderna, Inc. Healthcare Biotechnology
MRTN Marten Transport, Ltd. Industrials Trucking
MSFT Microsoft Corp Technology Software – Infrastructure
MU Micron Technology, Inc. Technology Semiconductors
NEM Newmont Corp Basic Materials Gold
NFLX Netflix, Inc. Communication Services Entertainment
NOC Northrop Grumman Corp Industrials Aerospace & Defense
PEP PepsiCo, Inc. Consumer Defensive Beverages – Non-Alcoholic
PYPL PayPal Holdings, Inc. Financial Credit Services
QCOM QUALCOMM Inc. Technology Semiconductors
REGN Regeneron Pharmaceuticals, Inc. Healthcare Biotechnology
SNPS Synopsys, Inc. Technology Software – Infrastructure
SPSC SPS Commerce, Inc. Technology Software – Infrastructure
SWKS Skyworks Solutions, Inc. Technology Semiconductors
TDY Teledyne Technologies Inc. Technology Scientific & Technical Instruments
TFX Teleflex Inc. Healthcare Medical Instruments & Supplies
TJX The TJX Companies, Inc. Consumer Cyclical Apparel Retail
TSCO Tractor Supply Co Consumer Cyclical Specialty Retail
TTWO Take-Two Interactive Software, Inc. Communication Services Electronic Gaming & Multimedia
TYL Tyler Technologies, Inc. Technology Software – Application
ULTA Ulta Beauty, Inc. Consumer Cyclical Specialty Retail
UNH UnitedHealth Group Inc. Healthcare Healthcare Plans
UPS United Parcel Service, Inc. Industrials Integrated Freight & Logistics
V Visa Inc. Financial Credit Services
VEEV Veeva Systems Inc. Healthcare Health Information Services
VRTX Vertex Pharmaceuticals Inc. Healthcare Biotechnology
WST West Pharmaceutical Services, Inc. Healthcare Medical Instruments & Supplies