10 Best Stocks to Buy and Hold Forever
Patience can be a tough thing for an investor to muster, though it's a little easier with these names
By James Brumley
Source: Investor Place
http://investorplace.com/2016/02/stocks ... rqm4lh96M8
‘Time in the market and compounding make up for bad luck.’
Decades of research showed that the best stock jockeys only delivered about 1% more per year than just passively holding the index, and that most of that extra return was attributable to luck.
Ask yourself three questions if you’re considering an “expensive” stock right now:
1. Is the stock you want to buy tapped into one or more Unstoppable Trends? If yes, then it’s got a trillion-dollar tailwind no matter what the Fed does next, no matter how Wall Street tries to hijack it, and no matter what Washington thinks. If not, pass.
2. Does it make a “must-have” product or a “must-have” service? Genuine “must-have” investments are very simple to define and understand because you need them to survive, and people will spend whatever it takes even under economic conditions that will kill lesser competitors.
3. Is it a disruptor at a time when others cannot understand the disruption? This is particularly important because disruptors – like McDonald’s was when it debuted – almost always have the last laugh.
In closing, the best stocks are almost always expensive because they’re priced for growth. But that doesn’t mean you’ve missed out if you’re late to the party.
In fact, there are any number of companies that we talk all the time that are still worth buying today if you can answer “yes” to the questions I’ve just shared with you.
Do so and odds are you’ll be very happy with your purchase…
…even if the markets fall tomorrow.
Avoid these buy-and-hold investing errors:
-- Giving in to recency bias.
-- Emotional buying and selling.
-- Holding too long.
-- Forgetting to rebalance.
-- Investing in companies that aren't built for the long term.
-- Not understanding risk tolerance.
-- Trying to time the market.
-- Tapping assets prematurely.
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