Warren Buffett aims to hold stocks “forever.” We’re a bit less patient. But we like playing the long game: picking a few solid companies, sticking with them through tough times and hanging on for years, even a decade or more. Investing for the long haul can smooth out the risks of buying individual stocks, which may tumble or stay depressed for ages before taking off. A company’s innovations may also take years to bear fruit. Moreover, businesses with attractive growth often trade at lofty prices that may not be sustainable. The longer you stick with a stock that has stumbled, however, the greater the opportunity to recoup losses (assuming the business rebounds as well). With dividend-paying stocks, you can also pocket a bit of income while you wait.
All of the following 10 companies possess attractive long-range prospects: Each should be able to expand its sales and profits at rates well above the market average for years. And these companies are not too big to have a reasonable shot at quadrupling in market-value over the next decade (meaning annualized gains of 15%, or roughly double the projected return, including dividends, of the broad U.S. market).
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Investing for the next decade doesn’t mean you can buy these stocks then forget about them. You’ll need to follow them closely and may have to sell if cracks emerge in the business. Still, if these companies can keep building on their recent successes, they have a good shot at delivering superb returns over the long run, turning short-term dips in stock prices into faint and distant memories.
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Date — November 30, 2016 5:00 am
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