5 Stocks to Own for 50 Years
0.56%March 27 | MyPlanIQ portfolio symbol P_37285
own for the long run.
His goal was to cut to the chase to find the type of stocks that:
- Don't implode.
- Perform well on an absolute basis.
- Beat inflation.
- Hopefully beat the market.
His criteria are:
- Sustainable competitive advantage. Brand, style, and design are fickle, which is why I can't say I'll own shares of Apple forever. A great business does something special that others cannot easily replicate.
- Businesses that churn cash efficiently and don't put their assets at risk.
- Products and services that people adore or must have.
-
Management that commands respect.
His five stock -- note that he has skin in
the game, as he already owns all these
stocks:
-
Berkshire Hathaway (BRK-B)
-
Philip Morris International (PM)
-
Walt Disney (DIS)
-
Visa (V)
-
PepsiCo (PEP)
Nick also goes on to say that he could up with others but these were the ones he listed out.
My take on his list is:
-
Berkshire Hathaway -- while Buffet is there, you stand on the
shoulders of giants. I am not completely comfortable that they have the
succession planning fully worked out.
-
Philip Morris -- they may be a strong company but I just cannot
overcome my dislike of the product and what it does to the consumer
-
Walt Disney -- there will always be kids wanting to see movies and even if they don't, there's always ESPN
-
Visa -- clearly a leader but what about on-line payment with cell phone etc.
-
PepsiCo -- I have some concerns about the type of product and
associated health risks but this is a long term winner and I am an
investor in MacDonalds (MCD) so it would be a case of the pot calling
the kettle black
I am going to compare this selection with our dividend bearing ETF
benchmark and three other selections that we have previously made for
reference.