(0:35) - What Should You Be Buying As A Long Term Investor?
(3:00) - Tips To Help Build A Strong Portfolio
(9:35) - Understanding Stocks That Are Trading Sideways
(15:30) - Episode Roundup: SH, ULTA, TRIP, MCD, AMZN, GM
Tips on how to pick stocks to own for the next 5 to 10 years.
Welcome to Episode #270 of the Zacks Market Edge Podcast.
Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.
This week, Tracey is going solo to talk about how to pick stocks for a long-term buy and hold portfolio.
Recently, she did a podcast talking about Ed, a 91-year-old investor, who grew $50,000 to $5 million over the last 31 years by owning some great stocks.
But she got questions on Twitter asking how to pick stocks if you are going to buy and hold.
How did Ed know what stocks to buy?
Sometimes It’s Luck
Ed, 91-year-old investor, had worked at Sherwin Williams SHW for many years and when he retired, he got a stock package, most of which he still owns.
Sherwin Williams shares are up over 9,000% in the last 31 years so Ed got lucky. He worked at a great American company that continued to take market share long after he stopped working there.
But what if you don’t work at a publicly-traded company or it’s not one of the “winners”?
Tips on Finding Great Stocks
First, you should have a portfolio of between 10 and 20 stocks in a long-term portfolio so that you have diversity.
Second, you could follow the Peter Lynch strategy of “buy what you know.”
Tracey bought Ulta Beauty ULTA in 2014 because she was shopping there and loved their rewards program.
But Tracey also bought TripAdvisor TRIP because she used their product all the time to plan her travels. But she ultimately had to sell those shares as the business was challenged and it was losing ground to competitors.
Over the last 5 years, TripAdvisor has fallen 25% while the S&P 500 gained 100%.
Do you have a restaurant chain you love?
In the 1970s, many parents were buying the new Happy Meal at a restaurant chain called McDonald’s MCD and decided to buy the stock.
You might have decided to buy Amazon AMZN for the same reasons, because you’re using it every day to order something or watch something or listen to music or a podcast.
What else do you need to know about finding stocks to hold for the long-term?
Tune into this week’s podcast to find out.
[In full disclosure, Tracey owns shares of ULTA and AMZN in her personal portfolio.]
Bitcoin, Like the Internet Itself, Could Change Everything
Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.
Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.
See 3 crypto-related stocks now >>
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The SherwinWilliams Company (SHW) : Free Stock Analysis Report
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
McDonalds Corporation (MCD) : Free Stock Analysis Report
Ulta Beauty Inc. (ULTA) : Free Stock Analysis Report
TripAdvisor, Inc. (TRIP) : Free Stock Analysis Report
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Zacks Investment Research