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Stocks for 10+ Year Timeline


valueventures
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Hi All,

 

I am looking to invest in an index fund while holding some individual stock positions as well.  I am 25 years old and have a long expected holding period and reasonably high risk tolerance.

 

If you could only invest in ~10 stocks with an expected holding period of 10+ years, which stocks would they be and why?

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If you’re literally planning to buy now and hold for 10+ years, I think it’ll be pretty difficult to beat Berkshire.  I don’t have anything useful to say about it beyond what’s already been discussed here, but I am happy to bet $5 that it will absolutely trounce any broad market index going forward.

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I’d buy Vanguard’s total US stock index and equal amounts of BAM, BRK, Fairfax, Fairfax India, SoftBank, D, JNJ, PM, V and IRM.

 

It’s diversified, D and IRM have large yields and JNJ/PM/V should have decent dividend growth.  IRM is likely the riskiest, but would want something with a big dividend to reinvest into the others.  Also, don’t particularly like the current price of most of these, so would scale in selectively during sell offs.

 

Thanks

Lance

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If you're looking to buy and hold for a long time, then you're generally looking for companies and industries that are unlikely to face a lot of disruption and hopefully have some wind at their backs.

 

Off the top of my head I'd say medical devices is one of those. JNJ has been mentioned here. It's a giant, but also pure plays are good cos. Zimmer BioMet and Smith & Nephew would be candidates.

 

Jet power travel is also a good space. Here you have Rolls Royce, GE, United Technologies, and Safran. They're generally more (a lot more?) than jet travel and they're all at least a little hairy.

 

In financials BoNY Mellon is like an infrastructure company for the financial markets.

 

Also, pump companies tend to be really good bets. FlowServe and Weir Group are 2 good examples. Though lately these companies get whipped around pretty good by what's going on in the oil sector.

 

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Agree with the comments here. As time goes on your entry price matters less and less. Aim for reasonable and not a screaming buy, or you may miss out.

 

If I can buy better-than-average companies at below-market multiples, that is my goal. If there is a dividend I am even more happy.

 

Don't ignore tech. If you can identify tech companies with a higher-than-average rate of survival (google or apple perhaps?), I would not turn a blind eye to that area.

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