For those who don’t recognize the stock symbol, Olin is referring to Stryker Corp.
mjflack
1 month ago
Ten years is a long time, during which a company can go from the cutting-edge of business to Chapter 11. Therefore the only stock that I would happily hold for that long would be a closed-end fund, specifically one that is an index fund disguised as a CEF, with a low expense ratio selling at a 15% discount.
Ed Hanson
7 months ago
Waste Management. Everyone has and will have trash. Its recession proof. They power their vehicles from the methane gas from their landfills. Its Amazon proof. They are used at construction sites and natural disaster recovery. They pay a dividend. In 10 years people will have trash. Plus, there is a big barrier to enter for the business.
I had WM in taxable, IRA and Roth accounts. When it popped, I sold the IRA and Roth holdings as the yield was pretty much halved, but kept the taxable holdings as I didn’t want to pay for gains, and I still have WM providing service at home. The dividends still cover my hauling service, so I’m happy.
Philip Stein
7 months ago
I think the question is what individual stock, not stock fund, would you happily hold for the next ten years.
It’s notable that most of the individual stock picks mentioned are ones that have done well over the past ten years. Whether they will continue to shine for the next ten years is anyone’s guess.
I’d love to know what the picks were ten years ago and how they fared over the subsequent decade.
Market conditions shift, and my suspicion is that ten years from now winning stocks may be ones that few anticipated.
Personally, there isn’t one stock I would choose to buy and hold for a decade. I agree with those who choose total market index funds. I expect the U.S. and global stock markets will higher ten years from now, so it’s more likely that either a total U.S. or total world stock market index fund will be a more reliable investment than the stock of a single company.
I have so many to choose from, but without doubt or hesitation to select just one: Waste Management. Everyone has trash. It’s Amazon proof. It has multiple moats. Pays a dividend. Essentially recession proof.
SPGI (S&P Global Inc). It is a collection of growing moats as financial information becomes more valuable. Platts (the petroleum pricing platform), the S&P & Dow indices, and IHS Market (Fixed income and credit spread indices).
Gross profit margin of 72%, bringing in $107k per employee. It’s the kind of business where the managers go play golf as the money flows in.
SanLouisKid
1 year ago
Berkshire Hathaway. Even though Buffett will be 100 in 10 years (and probably still running Berkshire…) the company seems to be built to last. They have an interesting buyback plan in place that keeps the stock from completely tanking. I think of Berkshire as “my bond that doesn’t pay interest.” The retained interest/dividend is probably better invested by the company than me. It’s worked out ok over several decades.
I agree with all comments above and below (and you’re being modest, SLK – if you’ve held Berkshire for decades, you’ve done way better than “ok”). 🙂
With 80+ owned companies (including market leaders in many of the industries it competes in), a $250+ billion investment portfolio, and culturally aligned and exceptional talent that will carry on when Warren dies at his desk, it’s a comfortable choice for a 10-year hold (plus, when Warren is no longer controlling the capital allocation, there may be dividends in Berkshire’s future).
Many complain that it’s stock will not increase in value at the blistering rate it once did. I suspect the company was indeed built on a solid foundation and those who hold onto it for the long term will be pleased with it’s performance.
Arpe Gio
1 year ago
Apple, directly or through the Funds that hold it.
Ben Rodriguez
1 year ago
Great question. Very difficult for me to answer, but I’d say Microsoft. They’ve been a relevant and crucial tech company for decades and it’s difficult to imagine their products and services won’t be needed over the next 10 years. Plus they are probably the least obnoxious of all of the horrible big tech companies.
Sanjib Saha
1 year ago
All of them 🙂 – large or small, local or remote. That explains the Total Stock Market Index ETFs in my portfolio.
Nicholas Clements
1 year ago
If I did buy individual stocks I would probably consider Apple.
John Goodell
1 year ago
Boston Omaha. I own mostly index funds, but I do own this. It’s a conglomerate that is trying to mimic Berkshire Hathaway’s principles, but with a 21st century flavor to massively grow (they sponsor a spac that led them to acquire a company that produces private airplane hangers). Their businesses are boring, cash machines (billboards, surety bonds, rural broadband as well as minority stakes in some excellent companies too); the CO-CEOs appear to be excellent capital allocators. I really like the company ethos across the board.
Andrew Forsythe
1 year ago
Exxon. Not real happy about their role in climate change but we’ve owned the stock for decades and the capital gains hit we’d take if we sold would be substantial. Plus it does pay a good dividend.
So not sure we’re “happily” holding it, but we’d be very unhappy if we sold!
Sonja Haggert
1 year ago
Aflac. We’ve already had it for many years, it keeps paying a wonderful dividend and has more than doubled since we bought it. Even better, it’s a dividend aristocrat.
I’ve held SYK for over 10 years and will continue to hold it for the next 10+ years.
For those who don’t recognize the stock symbol, Olin is referring to Stryker Corp.
Ten years is a long time, during which a company can go from the cutting-edge of business to Chapter 11. Therefore the only stock that I would happily hold for that long would be a closed-end fund, specifically one that is an index fund disguised as a CEF, with a low expense ratio selling at a 15% discount.
Waste Management. Everyone has and will have trash. Its recession proof. They power their vehicles from the methane gas from their landfills. Its Amazon proof. They are used at construction sites and natural disaster recovery. They pay a dividend. In 10 years people will have trash. Plus, there is a big barrier to enter for the business.
I had WM in taxable, IRA and Roth accounts. When it popped, I sold the IRA and Roth holdings as the yield was pretty much halved, but kept the taxable holdings as I didn’t want to pay for gains, and I still have WM providing service at home. The dividends still cover my hauling service, so I’m happy.
I think the question is what individual stock, not stock fund, would you happily hold for the next ten years.
It’s notable that most of the individual stock picks mentioned are ones that have done well over the past ten years. Whether they will continue to shine for the next ten years is anyone’s guess.
I’d love to know what the picks were ten years ago and how they fared over the subsequent decade.
Market conditions shift, and my suspicion is that ten years from now winning stocks may be ones that few anticipated.
Personally, there isn’t one stock I would choose to buy and hold for a decade. I agree with those who choose total market index funds. I expect the U.S. and global stock markets will higher ten years from now, so it’s more likely that either a total U.S. or total world stock market index fund will be a more reliable investment than the stock of a single company.
Sci
It’s certainly a nice, steady, predictable business….
https://finance.yahoo.com/quote/SCI/
I have so many to choose from, but without doubt or hesitation to select just one: Waste Management. Everyone has trash. It’s Amazon proof. It has multiple moats. Pays a dividend. Essentially recession proof.
VTI of course!!!
Great choice — though I’d probably opt instead for VT for the global diversification:
https://investor.vanguard.com/etf/profile/VT
And you just taught me something new – again! Thanks Jonathan!
IT. A total 10 bagger, and no signs of slowing.
In late 1980s, I remember, ML saying AT&T and General Electric were sure things.
Have held Apple for 10 years, and plan to hold it for 10 more.
Verizon, I like the 5%dividend.
Still liking it now that it’s under $40?
SPGI (S&P Global Inc). It is a collection of growing moats as financial information becomes more valuable. Platts (the petroleum pricing platform), the S&P & Dow indices, and IHS Market (Fixed income and credit spread indices).
Gross profit margin of 72%, bringing in $107k per employee. It’s the kind of business where the managers go play golf as the money flows in.
Berkshire Hathaway. Even though Buffett will be 100 in 10 years (and probably still running Berkshire…) the company seems to be built to last. They have an interesting buyback plan in place that keeps the stock from completely tanking. I think of Berkshire as “my bond that doesn’t pay interest.” The retained interest/dividend is probably better invested by the company than me. It’s worked out ok over several decades.
I agree with all comments above and below (and you’re being modest, SLK – if you’ve held Berkshire for decades, you’ve done way better than “ok”). 🙂
With 80+ owned companies (including market leaders in many of the industries it competes in), a $250+ billion investment portfolio, and culturally aligned and exceptional talent that will carry on when Warren dies at his desk, it’s a comfortable choice for a 10-year hold (plus, when Warren is no longer controlling the capital allocation, there may be dividends in Berkshire’s future).
They’re buying back 5% of shares a year with their cash hoard. BRK is my favourite index fund.
Many complain that it’s stock will not increase in value at the blistering rate it once did. I suspect the company was indeed built on a solid foundation and those who hold onto it for the long term will be pleased with it’s performance.
Apple, directly or through the Funds that hold it.
Great question. Very difficult for me to answer, but I’d say Microsoft. They’ve been a relevant and crucial tech company for decades and it’s difficult to imagine their products and services won’t be needed over the next 10 years. Plus they are probably the least obnoxious of all of the horrible big tech companies.
All of them 🙂 – large or small, local or remote. That explains the Total Stock Market Index ETFs in my portfolio.
If I did buy individual stocks I would probably consider Apple.
Boston Omaha. I own mostly index funds, but I do own this. It’s a conglomerate that is trying to mimic Berkshire Hathaway’s principles, but with a 21st century flavor to massively grow (they sponsor a spac that led them to acquire a company that produces private airplane hangers). Their businesses are boring, cash machines (billboards, surety bonds, rural broadband as well as minority stakes in some excellent companies too); the CO-CEOs appear to be excellent capital allocators. I really like the company ethos across the board.
Exxon. Not real happy about their role in climate change but we’ve owned the stock for decades and the capital gains hit we’d take if we sold would be substantial. Plus it does pay a good dividend.
So not sure we’re “happily” holding it, but we’d be very unhappy if we sold!
Aflac. We’ve already had it for many years, it keeps paying a wonderful dividend and has more than doubled since we bought it. Even better, it’s a dividend aristocrat.