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A Well-Rooted Retail Investment

Tickers in this article: DLTR WAL
NEW YORK (TheStreet) -- Here is a concept that is very important in the market, and I saw it at work just last week when the Dow Jones Industrial Average finally kicked out three old duds.

Many times I look at portfolios that are transferred to me and see a similar situation -- I see a portfolio that is full of stocks of yesteryear. Well, I personally would rather own the "Best Stocks Now," not of yesteryear!

Look at Wal-Mart , the behemoth out of Bentonville, Ark. There's probably a Wal-Mart within driving distance of your home and you've probably visited it within the last 30 days. Wal-Mart is everywhere! The problem is, it's gotten so big it became a math problem.

Now I'm a number cruncher. I'd much rather see the numbers of a company than a CEO flapping his mouth, telling me how good his company is.

My point is that at one time Wal-Mart was a great stock. But today it is no longer a double-digit grower. It is a single-digit grower.

Wouldn't you have liked to have bought Wal-Mart in the early days?

I look for companies today that are like WMT was in its early days.

For instance, Dollar Tree .

Dollar Tree is a stock that I wrote about back in 2011 in my book Best Stocks Now! Companies. It is still performing way better than everyone else and it's still undervalued.

Stocks like this may never end up in the Dow, but if it can -- from its current market cap of $12.8 billion to $20 billion -- I would be OK with that. I have already made 142% in the stock once.

Data from Best Stocks Now App

The first time around with DLTR, I more than doubled my money. Then the shares started to cool off and I moved on. Well, it started heating up again earlier this year so I got back in and it's on the move once again.

DLTR is a stock that I currently own in my conservative growth accounts. It is a $12 billion company -- a little, tiny, large-cap stock. By contrast WMT is a mega-cap stock at $244 billion.