Top 10 Best Buys | Stocks, ETFs, Mutual Funds

Yacktman Focused (YAFFX)
Fidelity Select Medical Delivery (FSHCX)
Fidelity Select Insurance (FSPCX)
Rydex Dynamic Nasdaq-100 2X (RYVYX)
Schwab Health Care (SWHFX)
Blackrock Healthcare Inv (MCHCS)
Rydex Health Care Inv (RYHIX)
Janus Twenty T (JAVLX)
Dws Health Care S (SCHLX)
Alger Health Sciences C (AHSCX)

These are the top 10 mutual funds ranked by investment potential (safety margin). Apparently, utility mutual funds have a lot of untapped potential. This may be the least interesting sector for growth investors, but when it comes to being undervalued, health care mutual funds seem to be the best. Cash flow is king, even when we don't like it.

Direxion Energy Bear 3X Shares (ERY)
Direxion Technology Bull 3X Shares (TYH)
ProShares UltraShort Oil & Gas (DUG)
Rydex Inverse 2x S&P Energy (REC)
HOLDRS Internet Infrastructure (IIH)
UltraPro QQQ (TQQQ)
ProShares Ultra Health Care (RXL)
Daily Semiconductor Bull 3x Shares (SOXL)
Rydex 2x S&P Health Care (RHM)
Rydex 2x S&P Technology ETF (RTG)

These are the top 10 ETF funds ranked by investment potential (safety margin). ETF funds offer more variety than mutual funds because they take undervalued investments and leverage them up two to three times. WikiWealth loves leveraged ETFs, because the investment potentials of many of these ETF funds are over 100%.

Apple (AAPL) Technology
Verizon (VZ) Telecom
Berkshire Hathaway (BRK.A) Staple
Goldman Sachs (GS) Financial
Target (TGT) Discretionary
General Motors (GM) Discretionary
Well Fargo (WFC) Finanical
Waste Management (WM) Staple
McKesson (MCK) Health Care / IT
Ball Corp (BLL) Materials

These are the top 10 stocks ranked by investment potential (safety margin). It is best to purchase a diverse group of stocks and funds in order to spread risk. Instead of owning five of the same type of stock, an investor can purchase an ETF that has exposure to that segment of the economy. This gives exposure and diversity without the trading costs of buying five different companies.

Changes to the Top Ten List

August 15th 2013: With the stock market rocketing over the last few years, an investor has to be far more cautious and conservative with their picks. Diversity is the key, but it's becoming even more important to invest in companies that are in stable, long term businesses. Using those insights, we constructed diverse portfolio that lowers risk, but also offers many opportunities to profit. Or course, be careful with any investment choices, because any one investment will have a high probability of going down, whereas a portfolio of great stocks, funds and ETFs are more likely to lower risk and outperform the stock market.

June 7th 2011 Update: we updated all of our analysis. Upon reviewing our top ten selections, we removed several stocks that appreciated substantially in value. Global Crossing (GLBC) increased by 130% in less than two months just around the time we posted it on our list. For those luck enough to buy this stock, congratulations! PepsiCo (PEP) and Millicom (MICC) are still undervalued, but they don't have enough investment potential to stay on our list. China Mobile (CHL) is overvalued, but until the newest financial statements came out, we could not make a short term calculation of their value. China Mobile chart points downward; WikiWealth's analysis says that trend will continue. Similarly, Aes Corp (AES) is overvalued after WikiWealth set a minimum discount rate for the discounted cash flow analysis. AES was the biggest casualty of that change, but our investors should benefit from much more conservative analysis. AmeriGas Partners (APU) Utility and Nisource (NI) Utility are still undervalued, but they are less so after WikiWealth made the conservative changes to the overall analysis. All in all, there were many changes to the top ten list, but all the changes help to strength the analysis.

Be very careful when investing in the next top ten buy list, because many of the stocks are foreign. WikiWealth constructs portfolios for the long term, only. Foreign stocks will be volatile, especially when faced with a potential global recession. Over the long term, these are great companies. Do your own research before investing.

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Disclaimer: WikiWealth does not like ranking or picking stocks, because investors unfairly assume that if WikiWealth's community of investors picked a #1 stock or fund, it should be the greatest stock or fund of all time. Undervalued investments simply trade below their fair value. It does not mean an undervalued investment will reach it's fair value. When investors purchase good investments, they tend to rise over time. WikiWealth finds good investments. Importantly, WikiWealth does not predict time frames, because prices can change quickly. For additional investing options, see WikiWealth's investment fund. Invest with caution.

Carefully consider the investment objectives, risks, charges and expenses before investing. This and other information can be found in the prospectus or financial statements. Read them carefully before investing. You may also obtain them from your financial adviser or broker/dealer representative.