Barry James has a checklist for worthy investments. To be attractive, a stock must have good relative value, good historical corporate earnings, and good relative price strength.
He seeks out companies likely to hold up well in down markets, with good overseas sales and strong cash flows.
Two companies currently attracting his attention also happen to be the world's largest in their respective fields.
His five-star James Balanced Golden Rainbow Fund is up an average of 7 percent per year over the last three years.
James likes McDonald's , the world's largest restaurant chain.
"They've had reasonably good same-store increases, even in the United States," he told CNBC. "They've got a good menu, they've revamped it, competing for the coffee market...and even with a weak economy, McDonald's isn't likely to be as cut as some of the casual-dining places."
James also offered bonus picks for CNBC.com: Owens-Illinois, the world's largest manufacturer of glass bottles; Hewlett Packard and Wal-Mart, also giants in their fields.
Barry James owns McDonald's, Owens-Illinois, Hewlett Packard and Wal-Mart through his fund.