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Best Stock to Own Right Now

Tuesday, 22 May 2012 | 6:05 PM ET
Fast Money Portfolio
Fast Money Portfolio

You’ve heard enough about Europe, China, the November elections, tax hikes, spending cuts and all those other threats looming over the markets.

What you want to know is how to position for it all?

When the environment becomes as unpredictable as it is now, the Fast Money traders often say – look at what’s working.

And the returns generated by Chuck Akre in the Akre Focus Fund are certainly working.

He’s beaten the S&P by more than 15% over the past year. And Akre tells us he thinks the best stock to own right now is Mastercard.

“It's a phenomenal business,” explains Akre. In fact it’s his top holding at the time of writing. Take a look.

Top Holdings Of Akre Focus Fund
Mastercard 8.3%
Ross Stores 6.4%
American Tower 5.8%
Dollar Tree 4.7%
Moody’s 4.7%
TD Ameritrade 4.6%
Visa 3.9%
The TJX Companies 3.9%
LPL Investment Holdings 3.4%
Lamar Advertising 2.9%
Source: Akre Capital Management

Fundamentally Akre thinks Mastercard is in the sweet spot.

FM Portfolio: Best Stock to Own Now
Chuck Akre, Akre Capital Management, says Mastercard is a "killer business."

“Mastercard, along with a few others, are the major rails that electronic transfer of value takes place on – throughout the world,” he says.

And he thinks the company’s global growth prospects are strong.

“(Electronic transactions) are still a relatively small percentage of transactions. Roughly 85% of all transactions are still done with paper. So there’s a huge tail wind at their backs.”

Also Akre likes the metrics.

“They get paid on gross dollar value as well as number of transactions. They have very high returns on capital; they have no debt and Mastercard sells at a price to free cash flow that’s lower than their growth rate.

All told, "I think it’s a terrific opportunity," he says.

  Price   Change %Change
BGES
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DLTR
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LAMR
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MA
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MCO
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ROST
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TJX
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V
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Posted by CNBC's Lee Brodie



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Trader disclosure: On May 22, 2012 , the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Keith McCullough is long GLD; Keith McCullough is long TLT; Joe Terranova is long VRTS; Joe Terranova is long MCD; Joe Terranova is long PNC; Joe Terranova is long SBUX; Joe Terranova is long SJM; Joe Terranova is long UPL; Joe Terranova is long AAPL; Joe Terranova is long CNX; Joe Terranova is long LQD; Tim Seymour is long BAC; Tim Seymour is long CSCO; Tim Seymour is long SBUX; Tim Seymour is long FB; Tim Seymour is long BTU; Steve Grasso is long ASTM; Steve Grasso is long BA; Steve Grasso is long D; Steve Grasso is long FRO; Steve Grasso is long LNG; Steve Grasso is long MHY; Steve Grasso is long MO; Steve Grasso is long PFE; Steve Grasso is long S; Steve Grasso is long XLU; Steve Grasso is long ZAZA; Mike Murphy is long TOL ; Mike Murphy is long PEP; Mike Murphy is short JPM

For Chuck Akre
The Akre Focus Fund is long MA
The Akre Focus Fund is long ROST
The Akre Focus Fund is long AMT
The Akre Focus Fund is long DLTR
The Akre Focus Fund is long MCO
The Akre Focus Fund is long AMTD
The Akre Focus Fund is long V
The Akre Focus Fund is long TJX
The Akre Focus Fund is long LPLA
The Akre Focus Fund is long LAMR

For Jeff Kilburg
Jeff Kilburg is long FB

For Peter Misek
Jefferies Group, Inc. makes a market in the securities or ADRs of Dell.

For Nick Einhorn
Nothing to disclose

CNBC.com with wires.

  Price   Change %Change
MA
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MCD
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