Nine currently the best stocks for long-term investment
Best stock investment right now for Long-term accumulation of assets – the most effective form of investment, which is preferred by one of the world’s most famous investors – Warren Buffett. He said that the best investment horizon is “forever.” Buffet wrote a letter to the shareholders of his investment company Berkshire Hathaway in 1988. He stated: “If we own shares in an excellent company with excellent management, then our preferred holding period is forever.”
Berkshire Hathaway has achieved an impressive annual return of more than 20% during its existence. Overall, this is an overall increase in value since 1965 of an incredible 2,750,000%. The S&P 500 index strengthened “only” by 20,000% over the same period. No wonder tens of thousands of investors travel to Nebraska for the Berkshire Hathaway General Assembly each year.
If you want to do the same thing as “Oracle of Omaha,” you should probably look at the stock market in the long run rather than short-term fluctuations.
“Forever” means the longest possible investment horizon that you can have as an investor. So which stocks are worth holding forever? This is the question we want to discuss in the following article, where you will discover the best stocks you can hold forever.
Best stock investment right now
The stock market is continuously rising and falling. The spectacular rise in prices is followed by dramatic falls, such as the recent crash due to the COVID-19 pandemic. Over the years, many trends have come and gone, such as 3-D printers, marijuana, lithium, or fuel cell technology. Each hype brings new temporary winners who first rise sharply and then often fall even faster and fall into oblivion. It is becoming increasingly difficult for investors to track countless pieces of information and overlook many new stocks.
Assumption: strong market position, broad diversification, and high profitability
Which companies create long-term best stock investment right now for value and are reliable in the long run, and are they worth investing in their shares? In one sentence – companies with rising potential can firmly withstand economic crises while benefiting from economic conjunctions.
We are looking for companies with solid business models and products or services that will continue to be demanded in the future. These quality companies should have a strong market position, be widely diversified, and consistently achieve high results. At best, they are also very reliable dividend payers.
9. Shares of Abbott Laboratories – dividend aristocrat from the pharmaceutical industry
Abbott Laboratories (ISIN: US0028241000 – Symbol: ABT – Currency: USD) develops and sells drugs, primarily for cardiovascular (cardiovascular) and neuromodulatory (nerve) diseases. Over the past three years, the company has achieved an average sales growth of 12%, while profits have increased by approximately 13%. The company also raised its dividend for 40 years in a row – most recently to $1.44 per share. Abbott Laboratories belongs to the group of dividend nobility, a prestigious title received by a company that has been able to steadily and continuously increase its dividends for at least 25 consecutive years. This is a solid argument for long-term investors.
8. Stock Alphabet – Much more than just an internet search engine
Alphabet (ISIN: US02079K3059 – Symbol: GOOG – Currency: USD) has become a multinational technology company that operates Internet services such as Google and YouTube. The company is also active in the markets of cloud computing, artificial intelligence (AI), online advertising, software, hardware, and even autonomous management. With more than $120 billion in cash and almost zero debt, it is easy to maintain a dominant position in the market. The company usually buys most of the potential smaller competitors that appear on the market.
7. Coca-Cola Shares – Strength in the Beverage Market
Everyone knows Coca-Cola (ISIN: US1912161007 – Symbol: KO – Currency: USD). However, the company’s range is much more extensive than flavored Coca-Cola, Fanta, and Sprite drinks. Although non-alcoholic beverages and carbonated energy beverages represent a significant share of the company’s sales with more than two-thirds, a significant remainder is, for example, sports drinks under the Vio, Apollinaris, Valser Wasser or Powerade brands. Like Abbott Laboratoires, Coca-Cola is one of the dividend aristocrats. For a remarkable 57 years, shareholder payouts have increased every year. Dividends are expected to continue to rise steadily. The company is stable all over the world.
6. Colgate-Palmolive shares – a leader in the consumer goods segment with a strong portfolio of brands
Colgate-Palmolive (ISIN: US1941621039 – Symbol: CL – Currency: USD) is a multinational consumer goods company focusing on hygiene that manufactures and sells its products worldwide. The company’s best-known brands include Colgate, Elmex, Ajax, Meridol, Palmolive, and Fab. Recently, a cost reduction program has been introduced, and numerous innovative products have been added. Online trading has also been greatly expanded, so management plans a stable organic year-on-year growth rate of 3-4%. With a wide range of products and strong brands, Colgate-Palmolive is right on our most stable companies.
5. HDFC Bank shares – The largest bank in India
HDFC Bank (ISIN: US40415F1012 – Symbol: HDB – Currency: USD) is India’s largest bank and market leader. Since its inception in 1994, financial institutions have opened more than 5,000 branches and built a remarkable online store. India will soon overtake China in terms of population and become one of the world’s largest economic powers over the next two decades. HDFC Bank has already achieved significant economies of scale in the Indian market, gaining a competitive advantage. The growth potential in the emerging Indian market is still huge, and the Indian economy prospects are interesting.
4. International Flavors & Fragrances shares – a hidden favorite
International Flavors & Fragrances (ISIN: US4595061015 – Symbol: IFF – Currency: USD) is a company that few people know, although they probably come into contact with its products daily. IFF produces flavors and fragrances for 13 product categories, including cosmetics, perfumes, beverages, and sweet flavors. The company’s sales and profits are continually growing. Growth prospects are useful in all divisions, as improved recipes and fragrances promise higher sales volumes to industrial customers.
3. Nestlé Shares – Food and drink will always be needed
People will still eat and drink. Even in economic recessions, people have to provide for basic physiological needs. The Swiss company Nestlé (ISIN: CH0038863350 – Symbol: NESN – currency: CHF) produces baby food, finished and frozen products, beverages, and pet products. Nestlé always follows the trend of the times; the motto is “continuity and change.” For example, a billion-dollar deal with Starbucks will allow the company to sell its favorite coffee products in supermarkets. Meatless productions, such as vegetarian burgers and Swiss vegan cheese alternatives, are also conquering supermarket shelves.
2. Medtronic Shares – medical technologies for the treatment of diseases
Medtronic’s Irish medical devices (ISIN: IE00BTN1Y115 – Symbol: MDT – Currency: USD) are an essential part of modern medicine, from pacemakers to insulin pumps, stents, bone grafts to monitoring systems. Medtronic also has dividend security. Over the last 42 years, the share of shareholders’ profits has been increasing every year. Such impressive consistency is a necessary precondition that long-term equity investments should meet.
1. Thermo Fisher Scientific Shares – a widely diversified company of laboratory technologies
Thermo Fisher Scientific (ISIN: US8835561023 – Symbol: TMO – Currency: USD) manufactures a wide range of laboratory equipment and products. Thanks to significant diversification, the business model is stable and crisis-resistant for a long time. In 2019, more than 41% of sales went to laboratory products and services, 27% to life sciences, 22% to analytical instruments, and 15% to individual diagnostics. The company is very versatile, and many of its products have their use in the fight against COVID-19. Among other things, the company has developed a test for COVID-19, which is used by millions of people.
Conclusion on the best stock investment right now
So these are the best stock investment right now for long – term keeping. It is up to you which one of these you choose to invest in. But every choice from this list will be a responsible invest strategy.