What are the Best Stocks for the Long Run?

Today’s question revolves around finding the best stocks for long-term ownership. Nicholas J. Colantuono, CFP® joins the Money Wisdom Question Series to share insights into this viewer question.

The Power of Time Over Trends

It’s not about timing the market or chasing the latest trends, whether that’s AI, cryptocurrency, or any other buzzword. Instead, believe in the power of time in the market. When developing a long-term investment strategy, you want to focus on identifying the best stocks to hold over the years.

Characteristics of Ideal Stocks

This approach typically centers on large, stable, U.S.-based companies that pay dividends—companies that you, your friends, and our clients use daily. While market fluctuations may cause share prices to rise and fall, these companies consistently reward shareholders by paying dividends, reinforcing the value of long-term ownership.

Avoiding Market Trends

When considering the best stocks for long-term investment, it’s essential to avoid chasing fleeting market trends or stocks that may spike 20% in a year due to sudden positive news. Instead, we seek companies with a proven history of stable, year-over-year growth.

Focus on Stability and Income

From a portfolio management perspective, we concentrate on some of the largest, most stable, cash-rich companies in the U.S. that have a reliable track record of paying consistent dividends. These companies not only provide potential for growth but also offer steady income through dividends, aligning with Johnson Brunetti’s long-term investment philosophy.

In conclusion, the best stocks for long-term ownership are those with a proven track record of reliable performance and a dedication to delivering value to shareholders. Investing is a journey, and prioritizing quality companies can help you navigate that journey successfully. Remember, having a solid retirement plan is crucial, so keep this wisdom in mind as you build your investment portfolio!