In Portfolio Spotlight Series 2 – I will be going through each holding in my portfolio v2.0 and the selection criteria for its entry. Stocks are either
1. Great companies with consistent earnings, free cash flow, strong competitive moats. These are core holdings.
2. Potential growth companies with breakout earnings, growing competitive moats. These are holdings which typically are kept within 5% of the portfolio.
3. Geographical / sector diversifications. These are meant for diversification purpose and are kept within 5% if they are from emerging markets (e.g. China/HK) .

Next up in Portfolio Spotlight Series 2 is CVS. It currently occupies 11% of my portfolio and I have strong conviction in this stock short to mid-term.
CVS Health is a different kind of health care company. It is a diversified health services company with nearly 300,000 employees united around a common purpose of helping people on their path to better health. In an increasingly connected and digital world, it is meeting people wherever they are and changing health care to meet their needs. Built on a foundation of unmatched community presence, its diversified model engages one in three Americans each year. From its innovative new services at Health HUB locations, to transformative programs that help manage chronic conditions, it is making health care more accessible, more affordable and simply better.
1)Consistent Revenue Growth

2)Consistent Free Cash Flow
CVS has been having consistent free cash flow for the past 3 years

3)Market Cap Growth
As of September 2021 CVS Health has a market cap of $115.42 Billion. This makes CVS Health the world’s 135th most valuable company by market cap. As you can see, it has been growing its market cap consistently over the last 20 years.

4)Consistent Net Income Multiple
CVS has had consistent net income multiple. This indicates a management team which is efficient in handling its bottom line. A great management team is very important!

5) Future growth
This last factor is fundamental analysis. Does CVS have future market growth driver(s) ? The answer is yes !
Most of CVS future growth drivers will leverage on
- Covid 19 Vaccine Boosters
- Covid 19 Variants Of Concern
- PE vs Industry: CVS is good value based on its PE Ratio (15.9x) compared to the US Healthcare industry average (23.3x).