In the center of every long-term diversified portfolio are stocks I like to call “forever holds.”
That means that these companies are so intrinsic to the human experience that they will be around for at least the next 100 years and are the best possible stocks to buy.
They’re solid investments because you don’t have to worry about keeping an eye on their ups and downs.
Here are three securities I think would have an excellent permanent addition to any portfolio.
Best Forever-Hold Stocks: Energy SPDR (XLE)
Right at the top of the list of these stocks to buy, you must have some kind of energy exposure.
As I’ve explained many times, you cannot escape fossil fuels. They are everywhere. Just look around whatever room you are in. Every single item in there was transported from manufacturer to distributor to retailer to you … all by fossil fuels.
If there’s any plastic in the vicinity, that’s fossil fuels.
Obviously, every car that drives by your window is powered by fossil fuels. There are tens of millions, possibly hundreds of millions of cars around the world.
Planes. Trains. Scooters. The world revolves around oil. If it didn’t, we’d never have had the Mad Max films.
You have lots of choices here as far as stocks to buy, and I think any of the big oil producer/explorers will do. But these days, I suggest just buying the Energy SPDR (XLE), which has positions in all the biggest names.
Yes, I would buy now for certain, given that I think oil is at or near its lows.
Best Forever-Hold Stocks: The Walt Disney Company (DIS)
I don’t care how much the new Star Wars makes or doesn’t make — it is but one driving force for The Walt Disney Company (DIS), my next choice of stocks to buy.
Everyone is worried about ESPN, and I think that’s a distraction. With this new film, Disney is relaunching a mega-franchise that has worked its way deep into popular culture. A whole new generation is getting a bite at it now, along with all the ancillary revenues that come along with it.
That doesn’t even include the ever-expanding Marvel Films universe, which has so much content to draw from that the films and TV shows will be around for decades. They can recast every character like James Bond, too.
The same goes for nonfranchises like Pixar, which just keeps making great movies.
The ESPN problem will be solved, probably with a la carte, on-demand products, which will be even more profitable.
Disney’s empire is incredibly diversified. It is the leading brand name. It has more content than you could ever consume. It should be at the top of your list of stocks to buy.
Best Forever-Hold Stocks: Apple (AAPL)
This may be a stretch, but I think Apple (AAPL) qualifies in the stocks to buy and hold category.
It’s possible that as Apple matures, it loses its luster and falters and falls apart. I don’t see that happening though.
Even after the passing of Steve Jobs, the company continues to entrench itself into our lives.
Everything is Apple. — the phones, the tablets, the laptops, the desktops and of course, the massive app store. The customer service is fantastic. The genius bar is a revelation. The products are exceptional. Plus, the company has a bazillion dollars of cash. It can survive the zombie apocalypse if need be.
Apple products are also easier to use than Windows-based ones. It is the default purchase for people seeking to have a simple computer or simple phone.
As of this writing, Lawrence Meyers owned shares of XLE.