Forever is a long time to hold a stock. Most investors hold on to a stock for less time than the late Elizabeth Taylor held on to a husband. Depending on who you ask, the average holding period for a stock has been estimated as anywhere from 11 seconds to five days.
And it’s not just traders doing the churning. Even the index creators seem to be doing a Wall Street version of speed dating at times. Of the 12 stocks that made up the original Dow Jones Industrial Average in 1896, the General Electric Company (NYSE:GE) is the only one still in the index. And even General Electric was briefly kicked to the curb in the early 1900s.
Yet overtrading can be an investor’s worst enemy, as every dollar you spend in trading commissions is a dollar that is no longer compounding and working for you. And there are some stocks that are worth holding on to — forever. If a stock is healthy, growing and ideally throwing off a decent dividend, there’s no real reason to dump it.
So today, we’re going to take a look at 10 of the best stocks to buy and hold forever.
You’ll notice something about this list of best stocks: It’s pretty lean on technology companies, and there’s a good reason for that. Technology is inherently disruptive and also prone to being disrupted itself. Today’s tech leaders will likely not be in business a few decades from now. For a list of stocks to buy and hold forever, we’re looking for boring, consistent models that have withstood the test of time.