Successful investing, coming from the best investment minds, requires discipline, lots of patience, and the ability to control one’s emotions. I don’t know about you, but if Warren Buffet, Shelby M.C. Davis, and Benjamin Graham all recommend to be patient and disregard short-term forecasts, one better heed their advice.
When billionaire investor Warren Buffett, in his 1988 chairman’s letter to shareholders of Berkshire Hathaway Inc., wrote that his “favorite holding period is forever”, he truly meant it. Even during the 2008 recession, Buffett loyally held on to the bulk of his portfolio.
Now, forever is an exceptionally long time, so it raises the question, “Which stocks are worth holding forever?” Everybody knows that you can’t time the stock market, but the following stocks options proved, time and time again, that they’re the best investment over a long period of time.
When people think of great long-term investments, Apple will come first thing to mind. Apple Computers Inc. went public on December 12, 1980, starting at $0.39 per share. Growth of Apple’s stock had not started until decades later when Steve Jobs introduced the concept of the iPhone and savvy investors finally recognized Job’s vision. The surge over the years is directly attributed to its devices growing sales in every region it operates in.
When Jobs died in 2011, his successor, Tim Cook was able to gain the trust of investors with his viewed stronger business acumen and leadership. Cook reintroduced cash dividend in 2012 and under his leadership, many of the biggest names in investing found Apple stock attractive, including investor Warren Buffett who was known for shying away from tech investments. Apple was the largest holding in the Berkshire Hathaway portfolio as of December 31, 2019.
McDonald’s Corporation is one of the largest fast-food chains in the world and is by far the biggest fast-food chain in the United States by sales. Based in Illinois, McDonald’s began trading publicly in 1965, almost two decades after its first store opened.
As of 2018, McDonald’s has a market capitalization of more than $134 million meaning if you bought 100 shares during its initial public offering, your investment would be worth over $12 million today. Not only that, but you would also be receiving a quarterly dividend of over $345,000 every year. Every year, McDonald’s Corporation increases its total annual dividend payments since 1977. Its annual dividend amount in 2019 was $4.73, up from $4.19 in 2018.
Due to recent COVID-19 pandemic, shares of Amazon.com hit record-breaking high and many analysts think this growth won’t stop for the foreseeable future. It is predicted that Amazon’s valuation could reach $2 trillion by 2023. This Seattle tech giant came into the forefront as everything from grocery stores to medical supply companies rely on Amazon for delivery.
On September 4, 2018, Amazon was the second company to reach a $1 trillion market capitalization. Amazon founder, Jeff Bezos was number 1 richest person based In Forbes’ 2019 ranking with $131 billion.