Inside Paul Gabrail's Portfolio: The Top 5 Stocks

What’s Inside My Portfolio? Here’s a Deep Dive Into My Top 5 Holdings

Have you ever wondered what a well-crafted investment portfolio looks like? I’m about to take you behind the scenes of mine. With 25 holdings, a mix of 19 large-cap stocks, 3 small-cap stocks, and 2 ETFs, my largest position is surprisingly… cash—held in treasury bills. But that’s not why you’re here. You’re here because you want to know which stocks dominate my portfolio and why.

Here’s a detailed look at my top five holdings and the logic behind them. (Spoiler: it’s not just about what I own—it’s about why I own them. And by the end, you’ll understand why doing your own due diligence matters more than ever.)

1. Alibaba (Ticker: BABA) – 2.9% of My Portfolio

Let’s talk about the global juggernaut that is Alibaba. My cost basis? Just under $100 per share, and here’s why I continue to hold this company through thick and thin:

• Dominance in Cloud Computing: Alibaba Cloud is the 4th largest globally and owns 39% of China’s cloud market—proving its strength in one of the world’s most competitive tech ecosystems.
• Singles Day Extravaganza: In 2023, Alibaba’s Singles Day raked in a mind-blowing $84.5 billion in sales, dwarfing Black Friday and Cyber Monday combined.
• Share Buybacks: Alibaba repurchased 52 million shares last quarter, worth $4.1 billion. When a company is buying back its undervalued shares, it’s a massive signal of confidence.
  

Legendary investors like Michael Burry and Howard Marks are doubling down on Alibaba. Marks alone increased his position by 83%! That’s not just big money—that’s smart money.

Still, some fear looms: China’s political environment, population concerns, and U.S.-listed ADRs. But here’s the thing: these risks existed back when the stock was trading near $320. Today, it’s massively discounted, making it an incredible opportunity for long-term investors.

2. Sprouts Farmers Market (Ticker: SFM) – 2.9% of My Portfolio

Sprouts has been a surprising winner, growing from a small position to a top holding. Why? Because it’s been on fire. My cost basis is around $35 per share, and here’s what’s driving its growth:

• Incredible Margins: A 38% gross margin and 5% net income margin—far better than competitors like Kroger.
• Strategic Expansion: With only 421 stores today, Sprouts plans to triple that number. Even better, their new stores are 23% smaller, maximizing efficiency and profitability.
• Private-Label Growth: Sprouts-branded products boast 50–60% gross margins, pushing overall profitability higher.
  

This isn’t just a grocery store; it’s a long-term growth machine with the potential for multi-bagger returns. Despite its strong performance, I’m holding on, letting this winner ride.

3. Target (Ticker: TGT) – 2.3% of My Portfolio

Target’s struggles are well-documented, but here’s the question I asked myself: Do I see a world where Target disappears? The answer: absolutely not.

• Retail Powerhouse: Over 1,900 stores, making it the 6th largest retailer in the U.S. by revenue.
• Digital Growth: A 10.8% increase in online sales and 3 million new members in its loyalty program, Target Circle.
• Dividend Machine: A 4.2% yield, backed by solid free cash flow, makes Target a favorite among income investors.
  

I began buying Target at $135 per share and continued down to $105. With a strong long-term outlook and a proven ability to adapt, Target remains a cornerstone of my portfolio.

4. PayPal (Ticker: PYPL) – 1.9% of My Portfolio

PayPal is another stock that’s fallen out of favor with the market, but here’s the disconnect: its fundamentals tell a different story.

• Market Leadership: PayPal commands 45% of the global payments market, with Venmo adding 90 million active users.
• Explosive Growth: Its "Buy Now, Pay Later" service grew by an astounding 816%!
• Cash Flow Machine: PayPal generated $8.15 billion in free cash flow last year—proof that the company’s financial engine is far from dead.
  

At $85 per share, PayPal trades at just 10 times free cash flow. The market is underestimating this company, and I’m not missing out on this value play.

5. HP Inc. (Ticker: HPQ) – 1.77% of My Portfolio

This might seem like an odd pick in today’s tech-heavy market, but hear me out: HP is a cash flow powerhouse.

• Strong Free Cash Flow: HP generates $3.6 billion annually, with plans to return nearly all of it to shareholders.
• Cost Savings: The company’s Future Ready Plan is targeting $1.6 billion in cost reductions, improving margins and profitability.
• Share Buybacks: At its current valuation, HP is buying back shares at a staggering rate, potentially returning double-digit percentages to investors annually.
  

Despite being a declining business, HP’s value proposition is hard to ignore at 10 times free cash flow.

What’s the Takeaway for You?

Investing isn’t about blindly copying someone else’s portfolio—it’s about understanding the process. Every holding in my portfolio aligns with my long-term strategy: buy quality companies at reasonable prices and let them grow.

But here’s the catch: you need the tools to analyze these opportunities yourself. That’s why I rely on the Stock Analyzer Tool—a powerful way to evaluate any company’s future potential based on your assumptions. Whether you’re looking at Alibaba, Sprouts, Target, or something else entirely, the key is to know your numbers.

Don’t Miss Out—Your Future Self Will Thank You

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Don’t wait. Click below to get access to everything: our investing tools, the Stock Analyzer Tool, and a community of like-minded investors. This could be the best financial decision you’ll ever make.

By the end of this journey, you won’t just own stocks—you’ll own your financial future. Let’s do this together. Join today!

WATCH PAUL TALK ABOUT THE TOP 5 STOCKS HE OWNS!