3 Stocks You Should Buy And Hold For Decades
Getting rich off the stock market is no easy task, and anyone who’s made their fortune in that way will tell you the same. The hardest part is deciding which stocks will be stable for a set number of years, to safeguard against losing too much of your hard-earned cash.
There are hundreds of stocks to buy, but when it comes to return on investment, there are specific stocks you can look at to ensure you get your money back. Here are 3 stocks that you can buy and hold for 20 to 30 years:
Illumina is in the business of genetics, creating specialized systems for examining the most basic building blocks of life, our very DNA, something that every organism on Earth has in common.
90% of what we know in regards to DNA is thanks to the systems that Illumina has developed. By using Illumina’s systems to identify the very genes contributing to disease, medical professionals will be able to better determine what course of treatment will be most effective for a specific mutation.
How effective a treatment is can also be determined by a person’s inherited DNA. When a doctor is familiar with their patient’s genetic makeup, they can calculate how well a person will respond and how effective it may be for others. It can also help with the treatment of newborn children and for first-time mothers.
The same system of gene sequencing is being used by companies to help people trace back ancestry by generations. Gene sequencing technology is also helping farmers manage the growth of their crops, and aids in dealing with numerous pests.
The number of companies using gene-sequencing is only growing, meaning Illumina’s looking to capitalize and make quite a bit for stockholders. “In 2018, revenue rose 21% to $3.3 billion, and net income jumped to $850 million from $591 million.” The company’s revenue has been in the positive for the last two decades, and considering the opportunities in the future, it stands to reason the company will make the same or more in profits, making it a secure stock for anyone’s financial portfolio.
LVMH Moët Hennessy
With over 70 brands under its belt and things like leather goods and fashion, watches, and jewelry, it’s no surprise that Leo Sun ‘luxury company’ is being sold at upscale retailers. Some of its top brands are Louis Vuitton, Dior, Fendi, Loewe, Hennessy, and Sephora.
Purchasing stock in a luxury goods company might seem counter-conducive to making money, but the company which never sells at a discount can weather a recession better than ‘affordable luxury’ brands. Such brands include Michael Kors and Coach. The Louis Vuitton and Sephora brands are extremely popular with younger generations, which means they’ll be consumers for years to come.
The main business under LVMH’s banner, six in total, had great principal growth sales in the past year, with their fashion/leather, perfume and cosmetic brands, and other properties seeing double-digit growth. With their recent purchase of Belmond group and the fact it operates more than 40 hotels and trains in over two dozen countries, the future is looking pretty bright for the luxury giant.
LVMH’s portfolio is structured in such a way, it meant to survive decades of fluctuating markets, perhaps centuries, the brands they produce are familiar in places like China, Europe, the United States, and Japan. Each market had to reach competitive profit levels in 2018, making it one of the best stock to ‘set and forget.’
Las Vegas Sands
Although the gaming industry has caught flak in previous years whether due to bad press or business dealings, it has been able to generate far less risk than other industries. The environment is perfect a company like sands, helping them gain positive cash flow and dividends for its stockholders.
Las Vegas Sands has invested billions in the period from 2005 to 2013, expanding one resort in Macau and building another in Singapore. By avoiding building anything additional, the company saved on costs, allowing more cash to cover expenses and pay debts.
According to The Motley Fool, “EBITDA is a proxy investors can use for cash flow from resorts. The $4.8 billion of EBITDA in the last year that you see above compares to just $7.9 billion of net debt on the balance sheet, an extremely reasonable level of debt for such a strong-cash-flow business.”
The tight regulations in the gaming industry for Macau and Singapore mean there is little competition for Las Vegas Sands, which allows for them to rake in the profits. And with a yield of 4.65% for dividends, the company is looking green for the next ten to twenty years.