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Jon Najarian: Picks for a New Portfolio

Thursday, 11 Apr 2013 | 6:30 PM ET
First Steps In DIY Investing
Thursday, 11 Apr 2013 | 5:45 PM ET
How beginners should build a portfolio, with "Fast Money" trader Jon Najarian.

If you're just starting to build a portfolio, OptionMonster Jon Najarian suggests looking at just a handful of stocks and sectors.

Also, Najarian thinks the way to build a new portfolio is take the total cash available to commit to stocks and cutting it in half.

With 50% of that money he recommends the following:

Financials

"I like Wells Fargo and JPMorgan a lot," he said. "I think JPMorgan attracts new deposits as Europeans look to park money anywhere other than Europe. And Wells Fargo has big exposure to housing, which seems to be in the early stages of a massive recovery.".

Energy

"Penn West is a favorite of mine. It has a 10% dividend. I like it a lot and I like EnCana a lot, also for dividends," he said

Andrew Johnson | E+ | Getty Images

Utilities

Although Najarian is a nimble investor who ducks in and out of positions, sometimes in the same day, he thinks new investors should also look at utilities for their relative safety. American Electric Power, Southern Company and Duke all are on his short list for a new portfolio.

With the other 50% of that cash available for investing he recommends:

Buying on Dips

Najarian says then identify other attractive stocks and wait for dips. "Personally, if I were looking to buy dips today I'd be looking at Broadcom, Marvell and other technology names."


Trader disclosure: On April 11, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders; Karen Finerman is long AAPL; Jon Najarian is long GRPN CALLS; Jon Najarian is long WAC; Jon Najarian is long CLHX; Jon Najarian is long LPS ; Jon Najarian is long NSM; Jon Najarian sold puts in GLD; Jon Najarian sold puts in JPM; Jon Najarian sold puts in JCP; Jon Najarian sold puts in MSFT; Guy Adami is long C; Guy Adami is long GS; Guy Adami is long INTC; Guy Adami is long AGU; Guy Adami is long MSFT; Guy Adami is long NUE; Guy Adami is long BTU; Tim Seymour is long AAPL; Tim Seymour is long BAC; Tim Seymour is long SBUX; Tim Seymour is long YUM

  Price   Change %Change
WFC
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JPM
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PWT
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ECA
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AEP
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DUK
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BRCM
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MRVL
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  • Melissa Lee is the host of CNBC's “Fast Money” and “Options Action.”

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  • Guy Adami is a contributor on CNBC's "Fast Money." He also is managing director of stockMONSTER.com.

  • Najarian, the "Pit Boss," is cofounder of optionMONSTER.com, a news site for options traders.

  • Finerman is president of Metropolitan Capital Advisors, Inc., a company she co-founded.

  • Founder of EmergingMoney.com

  • Chief Market Strategist for Virtus Investment Partners & CNBC Contributor

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