Post: #1

Forever Stocks & Funds?

There were some articles I read somewhere about how people had invested into Stocks such as GE & Exxon & AT&T back in 40s & 50s and never monitored or had time to do trading and just kept the stock. Of course, turned into a gold mine.

INVEST & FORGET:

I see Gold & Silver funds as a standard refuge for most people. Its good. Do name some if these that you'd recommend.

I am thinking Energy/ Utilities, Foods/ Agriculture, Water/ Similar Natural resources..

Any thoughts on some SUCH FOREVER STOCKS! that will GROW!

INVEST & FORGET!

Post: #2

Buy and hold is obviously the best investing strategy, but I wouldn't equate it with "invest and forget."

If you "invest and forget," then you're not monitoring how your stocks are doing at all, and you're not reinvesting your dividends back into your portfolio.

"Buy and hold" doesn't mean "avoid monitoring your investments." If you hear that a company whose stock you invested in is about to go bankrupt, then it's better to sell while it's worth at least something, than to just let it go to near zero. I mean, a big loss sucks, but it's better than an enormous loss.

Also, when you forget about your investments, you're not reinvesting your dividends back into the company. Dividen reinvestment is a key part of the buy and hold strategy, because you're buying at multiple prices with funds generated from the investment itself. This guarantees your earnings are being used productively.

Post: #3

I agree that it is a mistake to trade frequently and try to outguess the market. At the same time, if you had simply bought and held over the last 10 years, your return would be pretty poor (less than 2% annually) and you would have actually been negative until the market rallied over the past 4 months. You have to think hard about which stocks to buy and at what entry points. I don't think you can just buy an index fund and expect growth over the mid-term or even enough growth over the long term to justify the risk. I think a middle of the road approach where you try to buy good stocks at a good price with the intention of holding them for 1-3 years is probably the best approach.

But what do I know. I sat out the recent rally.

Post: #4

Reinvesting the dividends is part of what was suggested. But, the question is what would be the NEXT GEN Almost Forever stocks?

Post: #5

(02-05-2012 07:49 AM)Andy_B Wrote:  Buy and hold is obviously the best investing strategy, but I wouldn't equate it with "invest and forget."

If you "invest and forget," then you're not monitoring how your stocks are doing at all, and you're not reinvesting your dividends back into your portfolio.

"Buy and hold" doesn't mean "avoid monitoring your investments." If you hear that a company whose stock you invested in is about to go bankrupt, then it's better to sell while it's worth at least something, than to just let it go to near zero. I mean, a big loss sucks, but it's better than an enormous loss.

Also, when you forget about your investments, you're not reinvesting your dividends back into the company. Dividen reinvestment is a key part of the buy and hold strategy, because you're buying at multiple prices with funds generated from the investment itself. This guarantees your earnings are being used productively.

Should be able to set up automatic dividend reinvestment

Post: #6

Try to imagine going into competition with McDonalds, or stopping people from avidly stuffing their pieholes there. ;-)

It would have to be the end of the world.

Post: #7

the problem is, for every Exxon, GE etc there are hundreds of blue chip stock that fail


BAC, BP, blockbuster and RIM are examples of relatively "safe" investments that fell apart


If you asked people 20 years ago to pick 2 of apple, microsoft, bank of america or BP, what would the safe pick have been?

Post: #8

Buy and hold is getting trickier. Due to the insane volatility of the global economy. For any longterm buy and hold, you will need stocks in "New American Economy" companies. People that made money in these blue chips bought these companies before they were consider blue chips. Blue chips is where you go after you've made it...or where you pack your most conservative assets. May i suggest Investors Business Daily as your guide. Also, get William O'Neil's "How to make money in stocks"....while at it...see "one up on wallstreet" by peter lynch.

(02-05-2012 07:38 AM)xmlenigma Wrote:  Forever Stocks & Funds?

There were some articles I read somewhere about how people had invested into Stocks such as GE & Exxon & AT&T back in 40s & 50s and never monitored or had time to do trading and just kept the stock. Of course, turned into a gold mine.

INVEST & FORGET:

I see Gold & Silver funds as a standard refuge for most people. Its good. Do name some if these that you'd recommend.

I am thinking Energy/ Utilities, Foods/ Agriculture, Water/ Similar Natural resources..

Any thoughts on some SUCH FOREVER STOCKS! that will GROW!

INVEST & FORGET!

Post: #9

I agree. But I am sure if one does or follows the research of the types of W Buffet.. we could find good bets?