By David Mildenberg Posted 01/01/2023

Click Here to Read the Full Article

LESSONS LEARNED

Panelist Ann Zuraw made three picks for BNC in 2021 that bombed this year. Don’t beat her up: She’s had success in previous years. But the experience prompted her to share these key investing principles.

1. Diversify. Do not have a portfolio of only three stocks.
2. Enforce stop-loss rules. While I worked for Bank of America, the trading
   desk sold a stock if it declined 20%. It was no longer my decision.
3. There are always market cycles. When everything has been too good to
   be true — then it is.
4. Know your risk tolerance. It is better to go for base hits and not a home run.
5. Keep investing in public stocks and bonds. Real estate and private equity have
   done well, but both are illiquid and entail long-term risk. 
6. Define honestly what long term means to you. My definition is five-plus years.
7. Never give up. Keep studying opportunities. We can figure it out together. ■  

2023 NC Stock Picks

RXO (RXO)
Market cap: $1.9 billion
Dividend yield: N.A. 

The Charlotte-based truck brokerage company was spun off in November from Greenwich, Conn.-based XPO. Its connections to a network of independent carriers provides shippers access to capacity for truckload, less-than-truckload and other transportation services. The company’s proprietary technology and highly variable cost structure helps optimize productivity, profit and volume. Shares declined from about $20 at the IPO to $16 in mid-December.

LABCORP (LH)
Market cap: $20 billion
Dividend yield: 1.2%

The Burlington-based company offers nearly 5,000 different tests and operates about 2,000 patient service centers. It has invested in greater automation and information technology to increase efficiency for physicians and patients, which should also lead to improved profit. Shares declined by more than 20% in the last year.  

Sealed Air (SEE)
Market cap: $7.5 billion
Dividend yield: 1.6%

The Charlotte-based company owns food-packaging brands such as Cryovac, Darfresh, and OptiDure, while other products include Bubble Wrap, Instapak and various shrink-film packaging systems. In November Sealed Air bought Liquibox for $1.15 billion. It expects earnings growth from the fast-growing Cryovac fluids business.  Shares are off more than 25% from previous highs.