- (0:35) - Finding Your Forever Stock
- (3:15) - Automobile Industry Giants
- (6:45) - Is The Tech Run Never Ending?
- (11:20) - The Old Economy Stocks
- (17:30) - Episode Roundup: GM, F, MSFT, AAPL, CSCO, IBM, PFE, MRK, LLY, SHW, PH
Welcome to Episode #204 of the Zacks Market Edge Podcast.
Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.
This week, Tracey is going solo to discuss forever stocks.
These are the stocks that some investors believe you can buy and hold without having to pay any attention to them until your retirement.
They are like “sure things.”
But are there really such stocks?
Do forever stocks actually exist?
Forever Stocks Gone Wrong
Back in the 1950s, 60s and 70s, the auto makers might have been forever stocks. GM GM was such a force in the US economy that it was believed whither GM, whither the US economy. “As GM goes, so goes the nation.”
But when was the last time you heard that about GM or any automaker?
The auto makers aren’t what they used to be. GM even had to go IPO, again, in 2011. Since that IPO it is up just 3.2% versus 161% for the S&P 500.
Technology Stocks as Forever Stocks
But if you’re not buying auto makers, what about technology companies? Surely, in this hot sector, there are “forever” stocks, which you can buy and hold for decades without any worries.
Apple AAPL seems like a sure thing. Shares are up 64% in 2019 alone. What could possibly go wrong?
But in the 1990s, Apple was just 30 days away from bankruptcy before it was bailed out by Microsoft MSFT which loaned it $150 million.
Forever Stocks in Old Economy Industries
Maybe it’s best to look for forever stocks among those who have been in the trenches for a hundred years or more and have already beaten their competitors.
One such company is paint giant Sherwin Williams SHW. From Jan 3, 2000 to Nov 1, 2019, nearly 20 years, the shares have soared 3,208%.
During that same time period, Microsoft, a tech darling, was up just 209%.
But if you’re concerned that you will not “pick” your forever stock correctly, there are always the indexes.
Vanguard’s S&P 500 ETF VOO has an expense ratio of just 0.03%. From Jan 3, 2000 to Nov 1, 2019 it is up 121%.
What else should you know about “forever” stocks in 2019?
Listen to this week’s podcast to find out.
Biggest Tech Breakthrough in a Generation
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A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
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General Motors Company (GM) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Vanguard S&P 500 ETF (VOO): ETF Research Reports
The Sherwin-Williams Company (SHW) : Free Stock Analysis Report
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