Top 10 Portfolio

The TopStock TOP 10 Portfolio is designed to be one of our easiest stock portfolio to follow. It’s our 10 favorite TopStocks in a single portfolio. There’s no fancy trades or options used here, we simply buy the top name in each of the S&P’s 10 sectors and hold them until it’s time to make a switch. And perhaps the best part is it only requires about 10 minutes a week to stay up to date.In our humble opinion, the TopStock TOP 10 Portfolio represents the REAL best of breed companies of the market. These are the top rated stocks (in terms of earnings strength and company performance) in the top rated sectors, not somebody’s personal feelings about which company has the strongest management team, the best new product, etc. Our analysis encompasses hundreds of indicators and focuses primarily on the strength, momentum, and changes to earnings expectations as well as company performance.

In short, we want only the companies that are the true “top stocks”

Turning to the sell side of the investment equation, it has been said that anyone can buy stocks – it’s knowing when to sell that separates the men from the boys. So, whenever a stock has (a) broken down on a chart basis, (b) fallen in our rankings, or (c) simply isn’t performing up to par, we’ll unemotionally cut it from the fold and move on to the next top rated name.

Unlike our active trader services, this portfolio is about one thing and one thing only – the performance of the portfolio! Therefore, we won’t keep track of the number of winning trades we make and frankly we don’t care if we have to cut a stock if it disappoints. This service is about making the most we can from a small portfolio of top ranked stocks.

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How the TopStock Top 10 Portfolio Works

The approach to our TOP 10 Portfolio is very straightforward.

We Do the Research
Every week the computers crunch the numbers and rank every stock in our universe in terms of earnings strength and company performance. It is important to note that this is NOT the typical “earnings momentum” type of formula that became so popular in the late 1990’s and the TopStock ratings cannot be obtained from any newspaper or public website.

Our system for determining a company’s earnings strength and performance includes hundreds of indicators and includes analysis of:

  • Earnings Estimates
  • Revisions to Earnings Estimates
  • Momentum of Earnings Revisions
  • Measures for Earnings Surprises
  • Upside Potential for Earnings Estimates
  • Company Momentum
  • Industry Performance

From there, our team painstakingly reviews each of the top rated stocks on an individual basis. We check out the charts from a technical perspective. We review Wall Street’s current research and brokerage ratings (we have access to most of the Street’s important research), and we check our long-term fundamental models. While it takes an enormous amount of time and energy, the goal is to identify the top two to three stocks in each sector.

Next, each of the week’s TopStock “contenders” is compared to our existing holdings. If one of the new kids appears to offer more upside or has a substantially higher rating, we don’t hesitate in making a change.

We Tell You EXACTLY What We’re Doing
Every Monday morning, we will send you a TRADE ALERT! detailing the changes that we are making to the portfolio.

We Publish our Performance
At, we believe that performance is job # 1. And unlike so many newsletter services out there, we don’t hide our performance. Every week we will send a Portfolio Roundup which includes a summary of any changes that we’ve made as well as the current performance to the portfolio.

To sum up, we do all the legwork, we tell you EXACTLY what we are about to do and why, and then we follow it up with a performance summary every week.

Let’s Talk Top 10 Performance

Turning to performance, the TopStock TOP 10 Portfolio continues to perform well in good markets and bad. Here are the results:

TopStock TOP 10 Portfolio
Performance Scorecard

TOP 10

S&P 500
2006 +48.41% +13.62%
2007 +25.60% +3.53%
2008 -20.24% -38.94%
2009  +10.25% +23.45%
2010 +9.34% +12.78%

Cumulative Return
(From Inception: 1-1-06)
+79.22% +0.74%

Top 10 Outperformance
versus S&P 500

Risk Management Strategies Are Built In!

Perhaps the best advice we can provide investors is simple: Stop Feeding the Bears!

As the saying goes, “sometimes the best offense is a good defense.” So, in addition to a powerful stock selection strategy designed to outperform by a wide margin in Bull markets, the TOP 10 also has a risk management strategy built into the portfolio for when the Bears begin to growl.

Our disciplined sell strategy is actually pretty darned simple. You see, we have no tolerance whatsoever for stocks that are not technically healthy from a chart standpoint. Thus, whenever one of our holdings moves into a downtrend or breaks important support — we sell the stock, no questions asked.

While it may sound simplistic, this “bottom up” or stock-by-stock approach to managing risk causes us to automatically reduce exposure to market risk during bear markets. And since one of the best ways to make money in the long run is to avoid losing big money in the short run, this approach is an easy way to protect your net worth during bear market periods.

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What You Receive:

Before anyone becomes a member of our service, we feel it is important for them to understand exactly what they will be getting from us. So here’s a summary of the reports you will begin receiving once you’ve signed up for a free-trial:

Real-Time Trade Alerts – We send a real-time ALERT! via email BEFORE every trade we make. These live reports tell members EXACTLY what we are about to do and why we are doing it. And to avoid any conflicts, it is our policy to wait until after we have received the ALERT to actually enter our trades. Each ALERT! includes:

      • Company Name
      • Ticker Symbol
      • Limit Price
      • Position Size
      • The Reasoning Behind the Trade – We believe it is vital to understand the reason WHY a trade is being made

Weekly Round-Up – Every week we update members on trading activity, current holdings, and performance of our portfolio.

Daily State of the Markets – As a member, you’ll receive our “Daily State of the Markets” market analysis and commentary each morning BEFORE the opening bell.

All the TSP Reports – In addition, you can choose to receive any or ALL of the following reports: (just click on the reports you’d like to receive in Your Account)

    • Breaking News – Up to the minute market news
    • Technical Talk – Stay on top of the key technical levels on the charts
    • What’s Driving Today’s Market – The key story of the day
    • The Big Picture Report – Stay in tune with major market cycles
    • Daily Stock Pick – Our pick of the day
    • Daily Focus List – The TopStocks we’re watching today
    • The 10.0 Report – The REAL “Best of Breed”
    • The Risk Manager Report – Understand the Risk/Reward environment
    • TSP Market Model Roundup – We quantify the current market
    • The Insiders Report – What are the “insiders” buying?
    • Daily Upgrade/Downgrade Report – Stay on top of stocks “in play”
    • Earnings Scorecard – Who “beat the street” and who “missed?”
    • The TSP 100 – The TOP 100 stocks (updated monthly)
    • The TSP Smart Sector Report – Keeps you in tune with market leadership
    • TSP IRA/401(k) Portfolios – TSP Portfolios for your long-term assets
    • Top Stories – Never miss an economic report or top story
    • TSP Sneak Peeks – See what’s inside of TSP portfolios

Do TopStock Ratings Really Matter?

We certainly think so, but sometimes it is best to let the numbers do the talking. Below is a table showing the average annualized returns for each rating category, as determined by historical testing performed by one of the country’s largest independent institutional research firms.

TopStock Ratings


9.0 – 10.0 +32.9%
8.0 – 8.9 +23.2%
7.0 – 7.9 +11.9%
6.0 – 6.9 +10.5%
5.0 – 5.9 +6.6%
4.0 – 4.9 +4.1%
3.0 – 3.9 +2.7%
2.0 – 2.9 -0.4%
1.0 – 1.9 -5.3%
0.0 – 0.9 -6.6%

Let’s Talk Price

The TopStocks TOP 10 Portfolio is a “pro level” portfolio that can easily replace your broker recommendations and those mutual funds in your portfolio. In short, you can be your portfolio manager for just $399 a year, which is less than $34 per month! (Monthly and quarterly plans are available.)

So if you are looking for an easy way to invest the exciting world of TopStocks, be sure to give this service a try!

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