Canakaris will sell a stock if it hits a target price (about 120% of what he considers fair value) or when he detects a slowdown in earnings momentum. Any significant earnings disappointment triggers an immediate review. He also has a 5% cap on any stock's value relative to the portfolio. Qualcomm (QCOM) briefly breached the 5% cap earlier this year, so Canakaris sold some. He still finds the shares attractive, even though they've risen to 43, from 33.43 in February. His cost basis is at 38.95 and his 2009 earnings estimate is $2.05 a share.

By contrast, he's not adding to Apple (AAPL) -- it's currently trading above 135 -- because it has bumped up against his target. However, he's holding onto the stock because of Apple's product innovation and fiscal discipline. His cost basis is 102.99.

He also likes Research In Motion (RIMM) because, like Apple, it has plenty of room to expand in the smartphone market. Research in Motion was recently trading at 69, but Canakaris' cost basis is 54.33. "We think the smartphone market is an open-ended opportunity," he says.

Discount-broker Charles Schwab (SCHW) makes Canakaris' list, since it doesn't have the balance-sheet issues of other financials, and earnings should recover with the market. He bought the stock all the way down to 12, but his average cost is 17.79. It was recently trading at 17.15.

He also likes Coca-Cola (KO) at its recent 46.90 and McDonald's (MCD) at 58.13, because the "companies have set realistic growth targets that they continue to exceed, and sport dividend yields of 3.5%."

He also likes Coca-Cola (KO) at its recent 46.90 and McDonald's (MCD) at 58.13, because the "companies have set realistic growth targets that they continue to exceed, and sport dividend yields of 3.5%."