Today, I’m going to recommend 10 of the best stocks you can safely (and profitably) buy and hold for the next 10 years.
And if you cringed at the words “buy and hold,” I understand.
It’s great advice — except when it isn’t. At times, it can absolutely horrendous advice, particularly if you’re talking about individual stocks. Buying and holding the wrong stocks can result in the total destruction of your portfolio. Just ask anyone who had a large stake in RadioShack Corporation (OTCMKTS:RSHCQ) before it went belly up.
Yes, 10 years is a long time to commit to a stock. Just think of everything that has happened over the past 10 years. For instance, in 2005, the iPhone hadn’t yet been invented by Apple Inc. (NASDAQ:AAPL). We hadn’t yet had a housing crash … or a financial meltdown.
So, you’ll notice a few things about this list of best stocks. To start, the stocks tend to have timeless — even stodgy — business models. There are no tech names. Not even blue-chip dividend champions like Apple and Microsoft Corporation (NASDAQ:MSFT) make the cut because too much can change in a decade. Ask BlackBerry Ltd (NASDAQ:BBRY).
To make this list of best stocks, the company should meet the following criteria:
- Must be supported by strong underlying macro trends — economic forces that are powerful and highly predictable.
- Should pay a good current dividend, or we should reasonably expect them to pay one on the very near future.
- Must be reasonably priced with an appropriate margin of safety.
Recurring themes you will see here are quality and stability. We’re looking for companies that can survive anything the market can throw at them over the next decade.