Now Is A Great Time To Own A ‘Forever’ Stock
It’s that time again — when nervous investors flee the market, and seasoned stock buyers look to make bigger profits.
As I write this, the Dow Jones Industrial Average is nearly 900 points lower than it was at the beginning of August. That’s almost a 5% decline. The Nasdaq, meanwhile, has dropped more than 4%.
What a difference a month makes.
These moves were spurred by a global drop in stocks that saw markets like China, Hong Kong and Australia all fall significantly.
The financial press is of course buzzing. Many observers are saying this is the start of a bear market, the beginning of the end for stocks, etc., etc.
It’s times like these when it’s great to own a “Forever” stock.
As I’ve discussed many times, the idea of Forever stocks is simple: as an investor, you want to buy great businesses that can be held for months, years, even decades, without worry. This theme is central to my premium newsletter, Top 10 Stocks. And it never ceases to amaze me that no matter how simple this idea sounds, so few investors actually follow it during good times, let alone periods of market volatility.
Just consider the history of one of my Top 10 Stocks holdings, The Hershey Company (NYSE: HSY).
Hershey has been around since 1894 — meaning it survived the stock market crash of 1929, the Great Depression, inflation scares and a host of other economic crises.
At the time, pundits were saying the exact same things you’ll hear on the news today and over the coming weeks — this is the end of stocks, the market is a sinking ship, time to run for your life.
And yet, those who stayed in Hershey’s enjoyed 600% gains over the last 25 years (and yes, that’s even after the market’s 5% drop since August). The company is still here, bigger and more profitable than ever. If you need proof, just look at the chart below — which puts the recent period into clear historical perspective.
Same thing goes for another of my holdings, which was founded in 1848 (and therefore also went through the stock market panics of 1857, 1866, 1873, and 1893 — as well as the “Black Friday” of 1869).
Of course, not all of my portfolio holdings have been around that long — but many of them continued, business-as-usual, through the Black Monday of 1987, and almost all of them weathered the global financial crisis of 2008 just fine.
All of the Forever stocks featured in my premium advisory are built around the same philosophy that’s given these stalwarts such time-tested success: great businesses with unique advantages, and a tradition of returning value to shareholders.
Whatever the coming weeks, months, and years hold — be it correction, recession or raging bull market — those qualities will continue to generate wealth and will remain in demand from discerning investors the world over.
Keep a close eye on the markets and look for opportunities to buy shares of great companies on the dip. (This is exactly what I’ll be advising my Top 10 Stocks readers to do.) As of right now I see no reason to alter a strategy that has been successful for some of the world’s best investors for centuries. In fact, I’m looking at buying more of some the great firms in my portfolio that have been hit the hardest.
If you’re willing to ignore the noise in the market and understand that those who prepare for what’s next will stand to make the lion’s share of gains in the next bull market, then I encourage you to check out my new piece of research on what I’m calling “America’s Comeback”.
It all has to do with a select group of innovative companies that could become the Apples and Ciscos of tomorrow. You’ll probably recognize a familiar name or two in this report — but I’ll also give you the names and ticker symbols of others you’ve probably never heard of. To gain access, simply go here.