Longer term buy-and-hold stock recommendations?

[Payton1221]

I think that most people are best served by investing in a low-fee index funds and/or good mutual funds over several different categories (large cap, small cap, international, etc.), and that's what the majority of our investments are in. But my wife and I paid our house off in September, so I'm starting a small assortment of individual stocks with the money that we're no longer paying on the mortgage. I'm a Warren Buffett fan and I like his approach of really investing in a company as opposed to a quick 3-day, 3-week, 3-month type of speculation hoping for a quick increase and then sell and move on.

So, what are some of the companies that have been around for a while and that you feel will be around for a lot longer? Companies perhaps that you do business with and, in your opinion, are well run companies with employees that you've had good experiences with. Companies that might deserve some additional investigating to see how they've performed in the past and how they might perform in the future.

[Iceman1800]

Apple

[7Seconds]

Adobe, Visa, Microsoft, Mastercard, Ecolab, Disney, Activision Blizzard, General Dynamics Corp. Waste Management low key solid too.

[Cantplankwell]

My opinion;Do not invest in what you dont understand, stay away from technology related stuff, it can be upset in a heart beat by some kid in a basement with a new app, invention or government ruling. I also avoid companies that are only into one thing/product line, do not have a good yield, or depend too much on the government in one way or another.

I go for salt of the earth every day stuff. Recently in the last two years I have culled most of my stuff into cash. I dont have confidence in the current "business/trade environment" the last couple of years...so I began selling. 3-4 years ago I had around 15 or so, but I still hold Johnson and Johnson (JNJ), McDonalds (MCD), and Coke (KO), I would probably buy more of these at some point. P&G I sold a couple of years ago, I might be back in there one day. I am hunkered down at the moment. Also some high flyers are just too expensive such as Amazon (AMZN)...way too expensive.


By no means have I become rich with any of this, just respectable/dependable returns. Hopefully it will supplement my pension some day.

[Payton1221]

Good thoughts so far. And a few of those suggestions (Apple!) are on my shortlist

I bought Amazon in Oct for $973 then bought more in April for $1548 (but I've even made money on the higher priced stocks). After that second purchase of Amazon is when I decided to spread my money out over lots of different stocks and I:

bought Pacira Pharmaceutical (PCRX) for $38.35
bought Planet Fitness (PLNT) for $43.50 . . . no hate
bought Starbuck (SBUX) for $51.28
bought McDonalds yesterday!!! (MCD) for $158.78 and I've already lost $4/share

[DuracellBunny]

I'm not a fan of long term stock speculation. I prefer to buy land instead.

I do play with some short term stuff though, as it is far more fun. I shorted the hell out of ******** before the stock tanked last week

[Mark1T]

I do play with some short term stuff though, as it is far more fun. I shorted the hell out of ******** before the stock tanked last week

Reported to the London Mayor for being smart and white. Something is wrong with that

[xXGHOST23Xx]

dont think that you only need to buy big popular blue chip names. If everyone knows about a stock, well then wall streets analysts know its growth, earnings, debt, etc prospects inside and out and they will price it accordingly. Give time to the names that are seldom talked of, that people wouldnt think of investing in, names that wall street hasnt covered for a long time. Thats where you'll find great value, the fewer competent individuals tracking it means the more likely the stock is miss-priced or under appreciated right now.

Everyone knows apple is amazing and will continue to grow, but keep in mind that a trillion dollar market cap is much much much tougher to double than say a 200m market cap. and that goes for the entire dow, and most blue chips. Im not saying there is no value there, it'll just be tougher to find given the competition.

I dont have any recommendations because I think people should buy based on their own accord and research, dont piggy back someone else's findings. Do your own due diligence and hunting; but first equip yourself with the proper tools to do so.

[KeepItMoving]

I'm not a fan of long term stock speculation. I prefer to buy land instead.

I do play with some short term stuff though, as it is far more fun. I shorted the hell out of ******** before the stock tanked last week

I prefer land also. I was told by every investment expert I spoke to that this was not the way to go. They also told me to not pay off my house. I bought properties in tourist places and rented them out. Just a couple. I paid them off as quickly as I could with my own money and rents. I have sold them; I'm happy with my return; and I'm looking to buy another property out west now.

Buy land. God isn't making any more of it.

[poundXpound]

Buy land. God isn't making any more of it.

Hawaii is, lol.

[Payton1221]

I've heard the land recommendation before. I have invested in a REIT so, in a sense, I have this covered

[7Seconds]

I've heard the land recommendation before. I have invested in a REIT so, in a sense, I have this covered

At this point in my life I like REITs more than rental property. I hate everything about dealing with the real estate market. I hate real estate agents, I hate lawyers, I hate contractors. I hate tenants. I still own a few beach properties I pay a company to manage and occasionally invest in properties with my brother in law who is a GC.

REITS- liquid, reinvest dividends, high quality (don't just buy yield look for quality - too many people just look for something with the highest yield and don't consider the fundamentals of the company), ability to take advantage of long-term growth stories (cell tower reits, data center reits, warehouse reits for e-commerce, etc.) No effort required.

NXRT is kind of an interesting tiny REIT from the standpoint of it's geared towards buying, fixing up and then selling apartments.


The advantage of the physical rental property is your income can be very tax advantaged due to depreciation (recaptured on sale, but if you hold it forever, non issue), and you have the potential snowball effect of being able to buy a property below market, fix it up, get it rented, refinance your cash back out, then repeat the process again and again. Investors call this the "BRRRR" method, and it's good because if you buy right, you can get that initial down-payment on your first property to keep working for you for many years.

Of course, rental properties need to be purchased below market in decent areas and at the right price point, which isn’t easy these days. The last crash provided the golden age of real estate investment opportunities for cashflow. I wouldn't count on anything like that again any time soon (anticipate a drop, but not Armageddon like 2008-11).

[KeepItMoving]

Hawaii is, lol.

OMG! That's true!

[sy2502]

Disney. It's very diversified between movies, TV, theme parks, cruises. etc. Their stocks aren't likely to make the big jumps that big tech does, but they won't crash and burn either.

[MyAvatar]

In for answers

[davisj3537]

We've discussed this before aka Pacira, but I really like Southwest Airlines. Their customer service and model is just so damn good it's hard to shake the notion. I fly 2xmonth for a living and nearly every time I don't fly southwest I'm let down. I haven't bought into them yet, but it's the next stock on my list of potential buys.

Like you, all I own is in index funds with a handful of exceptions. This will change as time goes on and the wife finally gets a dr paycheck....though we will be expanding into real estate as I have lots of experience with flipping foreclosures.

Good buy on SBUX

[startingat56]

Investing is like bodybuilding

you need a goal
there are different programs you can follow
there's lots of bro science
you can do it without any knowledge an get variable results
but
the more you learn, the more you can maximize results

but there are no performance enhancing drugs for investing .... unless you equate that to crime

learn about what you are doing
know your limit and stay within it


buy Dollarama

[Payton1221]

. . . I really like Southwest Airlines. Their customer service and model is just so damn good it's hard to shake the notion. I fly 2xmonth for a living and nearly every time I don't fly southwest I'm let down. I haven't bought into them yet, but it's the next stock on my list of potential buys.

I really like this suggestion--THANKS!!! I too think they're the best value in airlines, and some additional research by me just now has it on my short list of upcoming buys

[OldFartTom]

Many years ago I had a role supporting datasets and their meaning, taxonomies and bulk supply for use in quantitative analysis for asset allocation and historical data for back testing trading strategies, or all that waffle another way... "number stuff for picking things for funds"

We had some speil we used to trott out to people to explain a key point of quant analysis and it's different approach to technical analysis. Here is the sales pitch..

Suppose I tell you about some company, it's had the best year on year growth for 10 years for any US company, it's a blue chip stock, never made a loss in the 40 years of trading, last 3 months ordinary shares has had 2 digit growth, 5 year growth is 700%, they are a big name.

Sounds great long term investment....

So if I then said one more fact, that they are now expected to go bust in next 2 years months due to an emerging huge toxic waste/radioactivity/asbestos scandal... well that would kind of change things? right

So the moral of the story is that wise long term investment decisions are based on future expectation, not historical performance.

Historical performance is lovely, but future expectation is the key decision maker. And if you don't understand the business, market, or business model, how can you predict future performance.

Picking investment because you personally enjoy the product, or other people like the stock, or they did well in the past are very unreliable deciders.

Only investment money you can afford to lose, and where you actually understand the business and market.

Thete used to be an expression "as safe as houses" while housing isn't risk free, it may be a lower risk, and at least it isn't some super complex scheme with the design to churn investors and buy some fund manager a new Porsche.

I've dealt with enough fund managers in the past to be deeply cynical. How hard can it be? Take an established index, mirror/weight that for the fund but take out the 5 worst performing instruments each month, there... an "active fund" which "outperforms the index" you can charge high fees for that

Houses people, houses (but pick wisely as it's not zero risk), don't get over leveraged!

[startingat56]

don't invest in the company you work for

if your company tanks, so does your investment

[weiss1967]

HWO (high arctic), plenty of cash, very secure dividend which is over 4% currently. They were making money through crude oil slum and buying rigs on the cheap. They are still making money and god knows how much they will be making when drilling activity picks up in North America, as most of their newly acquired hardware is way under-utilized. Not so much as buy and hold indefinitely, as with any oil stock, but midterm this is a very secure holding, with free cash flow from dividends and great upward potential.

Ok, I told you my recommendation. Now, what is yours. I am listening...

[Payton1221]

Ok, I told you my recommendation. Now, what is yours. I am listening...

My short list now includes Southwest Airlines, Bank of America, Chevron, CVS Pharmacy, and Google.