3 Stocks to Hold for the Next 20 Years

Business

Motley Fool 03 August, 2021 - 06:22am 35 views

Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services.

Rich has been a Fool since 1998 and writing for the site since 2004. After 20 years of patrolling the mean streets of suburbia, he hung up his badge and gun to take up a pen full time. Having made the streets safe for Truth, Justice, and Krispy Kreme donuts, he now patrols the markets looking for companies he can lock up as long-term holdings in a portfolio. His coverage reflects his passion for motorcycles, booze, and guns (though not enjoyed all at the same time...usually), but his writing also covers the broader sectors of consumer goods, technology, and industrials. So follow along as he tries to break down complex topics to make them more understandable and useful to the average investor. Have a story idea? Contact Rich here. I may not be able to respond to every suggestion, but I do read them all! Think an article needs a correction? Reach Rich here.

Ideally you should be buying stocks for your portfolio with the idea in mind that you will own them forever. While few, if any, investors actually do that, the purpose of the exercise is to create a mindset that differentiates you from the day trader, who's constantly flitting in and out of positions.

As the investing saying goes, your portfolio returns are not based on market timing, but rather by time in the market. It's why buy-and-hold investors are far more successful than those who are always buying and selling shares.

While any stock you purchase should be held for a minimum of three to five years, the three stocks below are ones you can comfortably own for the next 20 years and not worry about.

Janitorial services and facilities manager ABM Industries (NYSE:ABM) is in an industry so boring you probably just fell asleep reading that sentence. Yet it's the ho-hum nature of ABM's business that makes it an easy call to be a long-term hold in your portfolio.

ABM has been around for 112 years, meaning its been through two world wars, the Great Depression, the Tech Wreck of 2000, the War on Terror, the Great Recession, and the pandemic. To say it's survived more than a few upheavals and continues to thrive would be an understatement.

Particularly after the COVID-19 outbreak, and now with the spread of variants of the coronavirus globally, there's a heightened need for cleanliness and sanitation. ABM has developed stringent cleaning protocols, which it calls EnhancedClean jobs, that helped it to more than double adjusted operating profits last year. 

That's undoubtedly going to be a driver for future growth for some time to come, but even when the world returns to normalcy, its services will be in demand. Coupled with a dividend it has paid for 56 years -- and raised annually for the past 50 years, making its stock a Dividend King -- ABM Industries is a company you can set and forget in your portfolio.

Robotic-assisted surgical systems are certainly much sexier than janitorial services; and Intuitive Surgical (NASDAQ:ISRG) is a stock you can own for the next two decades because it is at the leading edge of the industry that will be the future of how surgery is conducted, if that future isn't already here.

Intuitive Surgical is running so far ahead, its competitors aren't even close. It has installed well over 6,300 of its da Vinci systems that assist doctors in performing minimally invasive laparoscopic soft tissue procedures. Their accuracy leads to smaller visible scars after surgery and faster patient recovery times. The ubiquity in hospitals and surgical centers around the globe -- all of the competition's machines combined don't add up to half of Intuitive Surgical's installed base -- gives it something approaching monopoly status in the industry (which has admittedly led to some lawsuits).

There is future growth opportunity deriving from Intuitive Surgical's ability to continually expand the da Vinci's addressable market to other surgical procedures, such as thoracic, gynecological, urological, and general surgical practice where it has added wrist stapling capabilities. Look for this leading surgical assistant to keep leading the field.

Marijuana is another area with massive potential, even if the results in the space have been less than spectacular so far. Some 36 U.S. states have legalized medical marijuana use so far, and another 18 allow marijuana to be sold for adult usage.

Taxes and regulations have been two of the biggest hangovers confronting the industry, but Jushi Holdings (OTC:JUSHF) just might be able to circumnavigate these hazards better than others because of its narrow focus.

The multi-state operator currently targets growth in just three core states, but it's looking to expand to new markets with selective acquisitions, such as its recent purchase of Nature's Remedy in Massachusetts. It's opening 10 to 12 new stores this year, which will give it as many as 27 by the end of the year, and Jushi intends to grow its cultivation assets from three states to five states.

Jushi is an exciting opportunity because it is a stock offering investors high rates of growth today. Over the coming decades as the cannabis industry matures in the U.S., it should be one of its leading lights that will also provide stable returns in the future as its base of operations spreads. 

It's a riskier investment than either ABM Industries or Intuitive Surgical, but should be one investors can readily own for the next 20 years and beyond.

Discounted offers are only available to new members. Stock Advisor will renew at the then current list price. Stock Advisor list price is $199 per year.

Stock Advisor launched in February of 2002. Returns as of 08/03/2021.

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IBD Live: First Look

Investor's Business Daily 03 August, 2021 - 02:30pm

Robinhood stock rallies some 20% to trade above $38 IPO price

Seeking Alpha 03 August, 2021 - 02:30pm

Robinhood surges 25%, blows past $38 IPO price

CNBC 03 August, 2021 - 09:41am

Shares of Robinhood soared Tuesday, pushing the newly public stock trading app well above its IPO price of $38 per share last week.

Robinhood went public last Thursday on the Nasdaq under the ticker HOOD, hitting the public markets it seeks to democratize. The stock priced at $38 per share, the low end of its offering range. It opened at that price on Thursday but then fell 8% on its first day and had largely traded below that price, until Tuesday.

Robinhood's stock last traded at $47.40 per share, up 25% on Tuesday.

The Menlo Park, California-based company appears to be garnering attention from retail investors on Tuesday, after giving roughly 25% of its IPO shares to its own clients. HOOD is a "top traded stock" on Fidelity, which is generally a good proxy for individual investor interest on a given day.

There have been 5,464 buy orders and 4,503 sell order of Robinhood on Fidelity on Tuesday. The ticker also appears as a top mentioned stock on Reddit's WallStreetBets, according to Swaggy Stocks, which aggregates the posts.

"Although we have come to expect 40% surges on the first day of trading, Robinhood talked to a wider swath of investors, including significant retail to push the boundaries on pricing," Greg Martin of Rainmaker Securities said.  "I believe now, the long-term investors who see the incredible long-term value of Robinhood are moving the stock, as the short-term investors have largely fled the stock."

Bulls love Robinhood for its massive growth, especially during the coronavirus pandemic and GameStop trading mania. Robinhood — which offers equity, cryptocurrency and options trading, as well as cash management accounts — had 18 million clients as of March 2021, up from 7.2 million in 2020, an increase of 151%. The company estimates funded accounts reached 22.5 million in the second quarter.

"As Robinhood branches out into other forms of finance, including 'buy now, pay later' cards, I think [CEO Vlad Tenev's] army of 22 million users will grow and become more powerful," CNBC's Jim Cramer said on "Mad Money" Monday night. "That's why I'm telling you that Robinhood can be bought here," Cramer added.

He also said Robinhood could acquire another fintech company in order to expand more into the payments space, which could boost the stock even further.

Ahead of the IPO, Atlantic Equities gave Robinhood an overweight rating and $65 per share 12-month price target. Most of Wall Street is still deliberating its rating on the stock because of mandated quiet periods on research from underwriters on the deal.

"We believe this superior user growth will continue given the success of the referral program and the product appeal among its target demographic," said Atlantic Equities analyst John Heagerty. "We also see opportunity to build out the product portfolio to drive faster revenue growth."

Robinhood has also been getting a vote of confidence from Ark Invest's Cathie Wood since the debut.

Wood purchased about 1.85 million shares of Robinhood on Friday, adding to the 1.3 million shares she bought Thursday. Wood's total position is worth roughly $124.5 million, based on Robinhood's current price.

"Nothing would be better than for [Robinhood] to be priced perfectly and stay the same price for a couple of months," early Robinhood investor Jason Calacanis told CNBC last Thursday. "Any retail investors that might be new to the game, it would be a great lesson for them to buy and hold things for a long time. That is really where the great wins comes from."

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3 Stocks to Hold for the Next 20 Years | The Motley Fool

Barron's 03 August, 2021 - 06:22am

Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services.

Rich has been a Fool since 1998 and writing for the site since 2004. After 20 years of patrolling the mean streets of suburbia, he hung up his badge and gun to take up a pen full time. Having made the streets safe for Truth, Justice, and Krispy Kreme donuts, he now patrols the markets looking for companies he can lock up as long-term holdings in a portfolio. His coverage reflects his passion for motorcycles, booze, and guns (though not enjoyed all at the same time...usually), but his writing also covers the broader sectors of consumer goods, technology, and industrials. So follow along as he tries to break down complex topics to make them more understandable and useful to the average investor. Have a story idea? Contact Rich here. I may not be able to respond to every suggestion, but I do read them all! Think an article needs a correction? Reach Rich here.

Ideally you should be buying stocks for your portfolio with the idea in mind that you will own them forever. While few, if any, investors actually do that, the purpose of the exercise is to create a mindset that differentiates you from the day trader, who's constantly flitting in and out of positions.

As the investing saying goes, your portfolio returns are not based on market timing, but rather by time in the market. It's why buy-and-hold investors are far more successful than those who are always buying and selling shares.

While any stock you purchase should be held for a minimum of three to five years, the three stocks below are ones you can comfortably own for the next 20 years and not worry about.

Janitorial services and facilities manager ABM Industries (NYSE:ABM) is in an industry so boring you probably just fell asleep reading that sentence. Yet it's the ho-hum nature of ABM's business that makes it an easy call to be a long-term hold in your portfolio.

ABM has been around for 112 years, meaning its been through two world wars, the Great Depression, the Tech Wreck of 2000, the War on Terror, the Great Recession, and the pandemic. To say it's survived more than a few upheavals and continues to thrive would be an understatement.

Particularly after the COVID-19 outbreak, and now with the spread of variants of the coronavirus globally, there's a heightened need for cleanliness and sanitation. ABM has developed stringent cleaning protocols, which it calls EnhancedClean jobs, that helped it to more than double adjusted operating profits last year. 

That's undoubtedly going to be a driver for future growth for some time to come, but even when the world returns to normalcy, its services will be in demand. Coupled with a dividend it has paid for 56 years -- and raised annually for the past 50 years, making its stock a Dividend King -- ABM Industries is a company you can set and forget in your portfolio.

Robotic-assisted surgical systems are certainly much sexier than janitorial services; and Intuitive Surgical (NASDAQ:ISRG) is a stock you can own for the next two decades because it is at the leading edge of the industry that will be the future of how surgery is conducted, if that future isn't already here.

Intuitive Surgical is running so far ahead, its competitors aren't even close. It has installed well over 6,300 of its da Vinci systems that assist doctors in performing minimally invasive laparoscopic soft tissue procedures. Their accuracy leads to smaller visible scars after surgery and faster patient recovery times. The ubiquity in hospitals and surgical centers around the globe -- all of the competition's machines combined don't add up to half of Intuitive Surgical's installed base -- gives it something approaching monopoly status in the industry (which has admittedly led to some lawsuits).

There is future growth opportunity deriving from Intuitive Surgical's ability to continually expand the da Vinci's addressable market to other surgical procedures, such as thoracic, gynecological, urological, and general surgical practice where it has added wrist stapling capabilities. Look for this leading surgical assistant to keep leading the field.

Marijuana is another area with massive potential, even if the results in the space have been less than spectacular so far. Some 36 U.S. states have legalized medical marijuana use so far, and another 18 allow marijuana to be sold for adult usage.

Taxes and regulations have been two of the biggest hangovers confronting the industry, but Jushi Holdings (OTC:JUSHF) just might be able to circumnavigate these hazards better than others because of its narrow focus.

The multi-state operator currently targets growth in just three core states, but it's looking to expand to new markets with selective acquisitions, such as its recent purchase of Nature's Remedy in Massachusetts. It's opening 10 to 12 new stores this year, which will give it as many as 27 by the end of the year, and Jushi intends to grow its cultivation assets from three states to five states.

Jushi is an exciting opportunity because it is a stock offering investors high rates of growth today. Over the coming decades as the cannabis industry matures in the U.S., it should be one of its leading lights that will also provide stable returns in the future as its base of operations spreads. 

It's a riskier investment than either ABM Industries or Intuitive Surgical, but should be one investors can readily own for the next 20 years and beyond.

Discounted offers are only available to new members. Stock Advisor will renew at the then current list price. Stock Advisor list price is $199 per year.

Stock Advisor launched in February of 2002. Returns as of 08/03/2021.

Market data powered by Xignite.

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