Top Holdings

Microsoft – MSFT $374 Microsoft is the largest software provider in the world led by its teams M365 suite of apps including Word, Excel, Power Point, Publisher, and leading communication tools. Microsoft leverages its cloud services to provide applications. In the September 3rd quarter, sales rose 13% and earnings rose 27%, truly remarkable given the size of Microsoft. Looking forward to Microsoft incorporating its AI product offering Co-Pilot as an overlay with a rollout that started with large corporate customers. Although Microsoft’s stock is among the top performers in 2023, AI sales could dramatically increase profits over the next five years. And hopefully leading to further stock gains. Palo Alto Networks – PANW $290.90 Palo Alto is one of the largest security network service providers to primarily large corporations and government agencies. Palo Alto focuses on software that protects their clients from cyber-attacks that are increasing globally and pose a significant risk to all organizations. Recent hacks at MGM in Las Vegas shut down betting and lodging activities, presenting the threat and need for cyber protection. AI technology is being implemented in protecting offerings while hackers are also advancing their techniques. Palo Alto’s stock has been on a terror rising 25% in the past month. Vertex Pharmaceuticals – VRTX $351 Vertex develops and sells pharmaceutical products, addressing life threating diseases where there is no other treatment. On December 8th, the FDA will rule on their sickle cell drug which could be the first drug approved by employing gene editing technology. In addition, Vertex has a non-opioid pain management drug in phase 3 in clinical trials that a filing to the FDA is expected in the first quarter of 2024. Recent financial results included sales rising 8% and earnings 7%. High premarketing and drug trial expenses will hurt profitability until the new drug revenues become material. Vertex operates at the highest level of sophistication. Revenues could double over the next 3 to 5 years with FDA approvals for new drugs. Garmin – GRMN $124.05 Garmin’s origins date back to the dashboard navigational device you may have bought for someone as a holiday present 20 years ago. Today, Garmin is a leader in navigation devices used in marine, fitness, aviation, outdoor, and auto markets. After strong pandemic sales, present results at face value look unappealing, but renewed growth in sales is evolving from new product innovation. The investment community pays little attention to Garmin as they have no need for capital rise since they have no debt and have produced $1.3 billion in free cash flow over the last year. Garmin may be one of the few stocks’ worth holding forever. As an owner of multiple Garmin devices, I need to watch being biased. Oneok – OKE $69.67 Oneok recently acquired Magellan to become the largest fuel pipeline in the U.S. Given the barriers in constructing new pipelines, owners of existing pipelines benefit from a huge barrier to new competition. In addition, growth from the Magellan acquisitions that added transporting jet fuel, crude oil, and other refined products, Oneok is positioned to benefit from the exporting of L.N.G. (liquified natural gas). We expect the 6% dividend yield to increase when the debt raised recently is paid down. Nvidia – NVDA $462.03 In the emerging AI market Nvidia is the leading semiconductor provider by a very wide margin. Their technology leadership in high end competition needed for AI applications is unmatched at present, although competitors are attempting to catch up. While the stock of Nvdia have risen by almost 3-fold this year, earnings estimates have risen by a greater margin from $4.50 to $12.30 for fiscal year end of 2024, truly amazing growth. Nvdia has a strong competitive advantage in continuing to be leaders of AI growth. Although the stock may experience profit taking in the short term as investors will harvest the recent gains. Linde – LIN $403.56 Linde is a world leading industrial gas provider. Industrial gases are used in many industries from manufacturing health care and energy for large customers. Linde “builds” a gas production facility on site. The significant up-front investment creates a large barrier to losing a customer. Linde’s financial performance has been consistently steady over time. Hydrogen offers an excellent long-term opportunity as the gas may be the fuel for large engines such as ships, buses, and power plants. Producing cost effective hydrogen is the challenge. Deere – DE $368 Deere is the world leader in farm equipment. Also, it receives about 30% of revenues from construction products. Financial services contribute about 10% to earnings before taxes. In Deere’s case, the stock has been stuck in a range for two years and recently the company reduced its profit outlook for 2024 by 15%. Lower farm income due to the fall in commodity prices was the culprit. Given the long-term demand for food and Deere’s lead in AI and innovation, a long-term position is warranted from a portfolio perspective, holding out of favor positions of quality companies is a good strategy as business prospects. Next Era Energy – NEE $58.10 We have recently re-established a position in Next Era Energy after eliminating NEE from the portfolio prior to a plunge in the stock price earlier this year. Renewable energy stocks are in the “penalty box” with investors. The big issue is interest rates. Renewable energy projects require large upfront investments with dramatically lower operating expenses in the future, often reducing or eliminating fuel expenses. Solar and wind (on shore) are good examples and make up a growing portal for NEE’s energy production portfolio. Here is the problem; higher interest rates to finance projects kills the profitability of the investment. While NEE’s stock is down 30% for the year so far, operating results have exceeded expectations due to a hot summer and growth in customers coming to Florida. The investment opportunity in NEE is a quality company with growing earnings but out of favor with investors.

Microsoft – MSFT $374

Microsoft is the largest software provider in the world led by its teams M365 suite of apps including Word, Excel, Power Point, Publisher, and leading communication tools. Microsoft leverages its cloud services to provide applications. In the September 3rd quarter, sales rose 13% and earnings rose 27%, truly remarkable given the size of Microsoft. Looking forward to Microsoft incorporating its AI product offering Co-Pilot as an overlay with a rollout that started with large corporate customers. Although Microsoft’s stock is among the top performers in 2023, AI sales could dramatically increase profits over the next five years. And hopefully leading to further stock gains.

Palo Alto Networks – PANW $290.90

Palo Alto is one of the largest security network service providers to primarily large corporations and government agencies. Palo Alto focuses on software that protects their clients from cyber-attacks that are increasing globally and pose a significant risk to all organizations. Recent hacks at MGM in Las Vegas shut down betting and lodging activities, presenting the threat and need for cyber protection. AI technology is being implemented in protecting offerings while hackers are also advancing their techniques. Palo Alto’s stock has been on a terror rising 25% in the past month.

Vertex Pharmaceuticals – VRTX $351

Vertex develops and sells pharmaceutical products, addressing life threating diseases where there is no other treatment. On December 8th, the FDA will rule on their sickle cell drug which could be the first drug approved by employing gene editing technology. In addition, Vertex has a non-opioid pain management drug in phase 3 in clinical trials that a filing to the FDA is expected in the first quarter of 2024. Recent financial results included sales rising 8% and earnings 7%. High premarketing and drug trial expenses will hurt profitability until the new drug revenues become material. Vertex operates at the highest level of sophistication. Revenues could double over the next 3 to 5 years with FDA approvals for new drugs.

Garmin – GRMN $124.05

Garmin’s origins date back to the dashboard navigational device you may have bought for someone as a holiday present 20 years ago. Today, Garmin is a leader in navigation devices used in marine, fitness, aviation, outdoor, and auto markets. After strong pandemic sales, present results at face value look unappealing, but renewed growth in sales is evolving from new product innovation. The investment community pays little attention to Garmin as they have no need for capital rise since they have no debt and have produced $1.3 billion in free cash flow over the last year. Garmin may be one of the few stocks’ worth holding forever. As an owner of multiple Garmin devices, I need to watch being biased.

Oneok – OKE $69.67

Oneok recently acquired Magellan to become the largest fuel pipeline in the U.S. Given the barriers in constructing new pipelines, owners of existing pipelines benefit from a huge barrier to new competition. In addition, growth from the Magellan acquisitions that added transporting jet fuel, crude oil, and other refined products, Oneok is positioned to benefit from the exporting of L.N.G. (liquified natural gas). We expect the 6% dividend yield to increase when the debt raised recently is paid down.

Nvidia – NVDA $462.03

In the emerging AI market Nvidia is the leading semiconductor provider by a very wide margin. Their technology leadership in high end competition needed for AI applications is unmatched at present, although competitors are attempting to catch up. While the stock of Nvdia have risen by almost 3-fold this year, earnings estimates have risen by a greater margin from $4.50 to $12.30 for fiscal year end of 2024, truly amazing growth. Nvdia has a strong competitive advantage in continuing to be leaders of AI growth. Although the stock may experience profit taking in the short term as investors will harvest the recent gains.

Linde – LIN $403.56

Linde is a world leading industrial gas provider. Industrial gases are used in many industries from manufacturing health care and energy for large customers. Linde “builds” a gas production facility on site. The significant up-front investment creates a large barrier to losing a customer. Linde’s financial performance has been consistently steady over time.

Hydrogen offers an excellent long-term opportunity as the gas may be the fuel for large engines such as ships, buses, and power plants. Producing cost effective hydrogen is the challenge.

Deere – DE $368

Deere is the world leader in farm equipment. Also, it receives about 30% of revenues from construction products. Financial services contribute about 10% to earnings before taxes. In Deere’s case, the stock has been stuck in a range for two years and recently the company reduced its profit outlook for 2024 by 15%. Lower farm income due to the fall in commodity prices was the culprit. Given the long-term demand for food and Deere’s lead in AI and innovation, a long-term position is warranted from a portfolio perspective, holding out of favor positions of quality companies is a good strategy as business prospects.

Next Era Energy – NEE $58.10

We have recently re-established a position in Next Era Energy after eliminating NEE from the portfolio prior to a plunge in the stock price earlier this year. Renewable energy stocks are in the “penalty box” with investors. The big issue is interest rates. Renewable energy projects require large upfront investments with dramatically lower operating expenses in the future, often reducing or eliminating fuel expenses. Solar and wind (on shore) are good examples and make up a growing portal for NEE’s energy production portfolio. Here is the problem; higher interest rates to finance projects kills the profitability of the investment.

While NEE’s stock is down 30% for the year so far, operating results have exceeded expectations due to a hot summer and growth in customers coming to Florida. The investment opportunity in NEE is a quality company with growing earnings but out of favor with investors.

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Business Continuity and Succession Plan Disclosure Statement

Andrew Hill Investment Advisors, Inc. (“AHIA”) maintains a Business Continuity and Succession Plan (“BCP”) that has been developed with the goal of protecting the health and safety of our employees and maintaining continuity of service for our clients. Our Plan is designed to ensure that we are prepared to operate through significant business disruptions, so that our clients can access their accounts without significant interruption under most circumstances.
Key elements of our BCP include the following:

  • Critical data from our computer systems is backed up daily to geographically remote, secure facilities.
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  • We maintain an emergency contact list and procedures updated and distributed on a regular basis.


If your account requires servicing during a significant business disruption and we are unable to assist you, please call Fidelity Investments at 1-800-523-1203 and a dedicated team member will be able to assist you. It is impossible for us to anticipate every potential problem that may occur, but we believe our BCP will enable us to conduct business in the event of a variety of possible business disruptions. We review and test our BCP at least annually and it is subject to modification based on changing circumstances and assessment of need.

As a fiduciary, AHIA has certain legal obligations, including the obligation to act in client’s best interest. AHIA seeks to avoid a disruption of service to clients in the event of an unforeseen loss of key personnel, due to disability or death. To that end, AHIA has entered into a succession agreement with The Colony Group, LLC, effective May 24, 2019. AHIA can provide additional information to any current or prospective client upon request to Andrew D.W. Hill, President at 239-777-3188 or [email protected].

Andrew Hill Investment Advisors, Inc.
Privacy Notice

Andrew Hill Investment Advisors, Inc. (“AHIA”) believes it is essential that we maintain the privacy of the nonpublic personal information provided to us and that we obtain in connection with providing our products and services to clients.  AHIA views protecting its customers’ private information as a top priority subject to the requirements of the Federal Gramm-Leach-Bliley Act.  AHIA has instituted policies and procedures to ensure that client information is kept private and secure. 

AHIA limits the use, collection, and retention of such information to what we believe is necessary or useful to conduct our business and to provide and offer clients quality products and services, as well as other opportunities that may be of interest. Information collected may include, but is not limited to name, address, telephone number, tax identification number, date of birth, employment status, annual income, and net worth. 

In providing products and services, we collect nonpublic personal information about our clients from the following sources: 

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AHIA restricts internal access to nonpublic personal information about clients to those associated persons of AHIA who need to access that information to provide services.  As emphasized above, it has always been and will always be AHIA’s policy never to sell information about current or former clients or their accounts to anyone.  It is also AHIA’s policy not to share information unless required to process a transaction, at the request of a customer, or required by law.

AHIA places strict limits on who receives specific information about client account(s) and other personally identifiable data. As a rule, we do not disclose nonpublic personal information we collect to others. However, because we rely on certain third parties for services that enable us to provide our advisory services to clients, such as our attorneys, auditors, other consultants, brokers, and custodians who, in the ordinary course of providing their services to us, may require access to information, we may share nonpublic personal information with such third parties. 

AHIA may also disclose such information to others upon a client’s written instructions.  Such written instructions may be amended, and/or rescinded at any time in writing.  If a client prefers that we not disclose confidential personal information about them to non-affiliated third parties who provide a product or service that we feel would benefit them, the client may direct us not to make disclosures to such non-affiliated third parties via an opt-out provision.  We restrict access to nonpublic personal information about clients to those persons associated with AHIA, who need access to such information in order to provide our products or services to clients.  We maintain physical, electronic, and procedural safeguards that comply with federal standards to guard clients’ nonpublic personal information. If a client decides to close his/her account(s) or become an inactive customer, we will adhere to the privacy policies and practices as described in this notice. 

AHIA reserves the right to change these Privacy Principles, and any of the policies or procedures described above, at any time without prior notice. However, clients will be promptly provided with a current copy of our privacy notice upon material changes or upon request.  Active clients will receive a current copy of our privacy notice at least annually. These Privacy Principles are for general guidance and do not constitute a contract or create legal rights, and do not modify or amend any agreements.   If you have questions about this privacy policy, or if you wish to amend or rescind your written instructions with us at any time, please call us at (239) 777-3188.