I like to buy companies and then keep them forever. The only money I see from them is the dividends, so I look for companies with totally stable and reliable brands and constantly increasing dividends. A couple of the firms in this category that I own are: MCD (McDonald's) - Paying 3.3% right now. But few companies grow their dividend as quickly. In 2006 this paid $1 a year, now it's 81 cents a quarter. This stock is never cheap but it's incredibly stable and didn't even lose any value in the 2008 crash. PFE (Pfizer) - Also paying 3.3%. Lost a lot of value during the 2008 crash and cut its dividend in half, at the time they faced the expiration of some valuable patents. This is when I bought it. It's doubled in price since then but I think it's still a good value as Pfizer has strong R&D and is trading at the same price it was ten years ago. What are some companies you would like to buy and never sell?
I don't ever say never. I tend to buy them when they're growing fast or when they're cheap and making lots of $, or otherwise meet certain fundamental parameters. Or if they otherwise have things going on such as unique and promising new or improved products or services or other things happening likely to push them up now or in the future. I'll sell off or perhaps eventually sell out entirely if / when fundamentals change - they're no longer cheap or not making as much $, momentum slows and the price stalls, bad things appear to lie ahead, they're having management issues, they get a buyout offer that sends them way up, or some other event causes an unusually high pop in the price that is not likely to last - such as a huge oil strike or positive clinical trials or FDA approval on a drug - which may be a good reason to sell at least some of the stock. Again, I won't necessarily sell out entirely, but I will often cut my position when these things happen.
well i would say today market suggestion you have to hold MCD, NFLX, AMZN & you have to buy TSLA, TGT
I have a small long position in NFLX (used to be bigger) and also a small put position. Ditto for AMZN. Puts on TSLA. I recently made a quick buck on it doing a day trade when it got an upgrade and other good news during market hours one morning about a month ago. It's fallen a good 15% or so since then from where I sold at about $250 after buying at about $235. MCD and TGT are good companies, but neither excites me at this time. I used to own MCD but sold it over a year ago. What are your rationales for these suggestions?
JR, I invest for dividends - and I look at the return I'm making on my initial investment rather than the return on the current price. If the dividend increases each year, then the dividend they're paying when I buy the shares is the minimum return I'll make. Let's say you buy MCD now at 3.3%, you'll be making 3.9% on that investment next year, 4.5% the following year, and so on. I do sell any company that stops making a profit, but I say never sell because I buy companies where I expect that to never be an issue.
I hear ya. I guess I should have quoted Paul, as I was more wondering about his suggestions on AMZN, NFLX, and TSLA. I don't know if I'd put a whole lot of $ into those right now if I didn't already own them. I've owned NFLX since it was well under $100, and I recently took some off the table. And I've had a bit of AMZN for a while that I also recently lightened up on as well, along with puts on both. I often buy more on dips rather than sell, but their fundamentals at this time make me a little nervous.
BSM I've got a very similar tactic to yours. Though I do sell once in a while, either due to changes in the company it's my opinion of it's future, or simply to balance my portfolio a little. But so far I've made 2 sales during my roughly 3 year investment career. I recently made a thread about WTR. Check it out, in my opinion it's perfect for this kind of investing. The beginning yield is very low though. I also own PMI and CL which both seem to fit well into this strategy.
Never say never, like the first reply mentioned. That being said, there's a couple fairly stable companies you can just buy and hold off of. Coca cola, amzn, goog, etc. Buffet wouldn't invest in amzn and google b/c he doesn't know how to value them but if you're every so slightly tech savvy, I think you'd be able to understand that goog can't really go away. It's dominance and monopoly have gotten to a point where goog has just become part of our life. It's the future.
I would be very careful with both food/drink and technology companies. With food priorities change and there is a lot of competition, it can also be very hard to make their format work in other countries. With technology the problem is competition and new, different services popping up constantly. I see Amazon as overvalued, I thought of buying it due to them owning paypal but overall it looked quite expensive to me. I do agree about google though, they are just massive and a part of everyones daily lives.
As I mentioned on the other thread, I think CC companies are a great long term hold. Think about it: do you ever see some other competitor going against the likes of axp, visa, and mastercard? The game is rigged in that these major cc companies have too much going for them. They have all the leverage. They will continue to do well for quite some time.
