Author Topic: Stocks to buy for the long haul  (Read 1391 times)

Daisyedwards800

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Stocks to buy for the long haul
« on: April 22, 2020, 11:00:34 AM »
I am an index funds person and never day trade.  That said, I may want to beef up my Roth IRA with returns that may be a little higher (ok with gambling on it a bit) and won't need them for 1-5 years (depending on how the returns go after the crisis is over). 

What are some good long-play stocks that may have a higher return than the S&P itself over next 1-5 years?  Oil company stocks, airlines?  I have some cash to work with. 

talltexan

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Re: Stocks to buy for the long haul
« Reply #1 on: April 22, 2020, 11:58:02 AM »
Neither of those.

If your timeline is really 10 years, I'd suggest seeking small, value-based investments. YOu could do a small-cap value index, even, like $IJS or $SLYV

Daisyedwards800

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Re: Stocks to buy for the long haul
« Reply #2 on: April 22, 2020, 12:07:37 PM »
Neither of those.

If your timeline is really 10 years, I'd suggest seeking small, value-based investments. YOu could do a small-cap value index, even, like $IJS or $SLYV

Thank you !

Rob_bob

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Re: Stocks to buy for the long haul
« Reply #3 on: April 22, 2020, 01:59:16 PM »
Well I would consider your time frame of 1-5 years short term.  For 5 or longer you could look at Brookfield Asset Management BAM.

J Boogie

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Re: Stocks to buy for the long haul
« Reply #4 on: April 22, 2020, 02:05:41 PM »
I predict oil stocks and airlines and their ilk will once again be the reason that the S&P significantly lags behind the tech heavy nasdaq for another five years.

Think SQ, MSFT, GOOGL.

I bet each will easily double the S&P over the next decade.


ChpBstrd

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Re: Stocks to buy for the long haul
« Reply #5 on: April 22, 2020, 02:11:54 PM »
AMZN, CRM, and MSFT are poised to serve the new work-from-home white collar workforce. I also like healthcare and residential REITs, but definitely not mortgage, office, or retail!

A huge portion of the economy is now obsolete or oversupplied. You'll get an opportunity to pick up these names cheaper. Start making money today by selling far-OTM puts on them.

AdrianC

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Re: Stocks to buy for the long haul
« Reply #6 on: April 22, 2020, 06:02:08 PM »

MustacheAndaHalf

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Re: Stocks to buy for the long haul
« Reply #7 on: April 23, 2020, 06:38:53 AM »
As someone who favored a small/value tilt for a long time, it can trail the market for long periods.  If you have a Vanguard account, another warning: Vanguard Small Cap Value is not a small cap fund - it is half mid-caps by morningstar's metrics.  Even if you only rely on Vanguard's data, the median company in the "small cap value" portfolio has a $2.9 billion market cap.  Small... multi-billion dollar companies?

If you do want to press ahead into small cap value, it has fallen farther than small cap growth this year:
Small/Value -36.6%  (IJS)
Small/Growth -26.4% (IJT)

ctuser1

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Re: Stocks to buy for the long haul
« Reply #8 on: April 23, 2020, 06:57:53 AM »
I'm not too sure that small caps will capture their proportionate share of the economic growth in the coming decade or two.

Macro trends like AI favor large caps simply because of economics of scale. (Unless watson/cortana becomes way more customizable, powerful and actually intelligent, and is available to the small-caps via a Software-as-Service offering. I'm not holding breath for that.)

Biotech - the other possible macro trend in near future - has a culture of small caps. But the problem with them is that they don't survive independently too long. They tend to get bought by the behemoths after they have any promising result(s).


mrmoonymartian

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Re: Stocks to buy for the long haul
« Reply #9 on: April 23, 2020, 07:35:48 AM »
As someone who favored a small/value tilt for a long time, it can trail the market for long periods.  If you have a Vanguard account, another warning: Vanguard Small Cap Value is not a small cap fund - it is half mid-caps by morningstar's metrics.  Even if you only rely on Vanguard's data, the median company in the "small cap value" portfolio has a $2.9 billion market cap.  Small... multi-billion dollar companies?

You're talking about VBR, which is both mid and small value. However, VIOV is just small value.

ice_beard

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Re: Stocks to buy for the long haul
« Reply #10 on: April 23, 2020, 11:16:32 AM »
AMZN, CRM, and MSFT are poised to serve the new work-from-home white collar workforce. I also like healthcare and residential REITs, but definitely not mortgage, office, or retail!


Can anyone suggest reasonable tech and healthcare funds/etfs? 

ChpBstrd

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Re: Stocks to buy for the long haul
« Reply #11 on: April 23, 2020, 03:03:16 PM »
AMZN, CRM, and MSFT are poised to serve the new work-from-home white collar workforce. I also like healthcare and residential REITs, but definitely not mortgage, office, or retail!


Can anyone suggest reasonable tech and healthcare funds/etfs?

VGT and VHT

Buffaloski Boris

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Re: Stocks to buy for the long haul
« Reply #12 on: April 23, 2020, 07:25:11 PM »

American stocks don't interest me that much.  They're too expensive. Also, owning American stocks doesn't allow for hedging currency risk.  Which I really think I need to do. International is much more interesting to me.  I can buy index ETF's for different countries relatively cheaply with low expense ratios.     

hodedofome

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Re: Stocks to buy for the long haul
« Reply #13 on: April 23, 2020, 09:23:58 PM »
Iíve been in the software and tech industry for 15 years. Taking the Peter Lynch approach, I invest in what I know. These are the tech stocks which have industry leading products that everyone is moving to or is locked into using for years or decades to come:

AAPL
AMZN
NFLX
GOOGL
CRM
SHOP
RNG
ZM
DOCU
ADBE
AVLR
BILL
MSFT
WORK

Thatís enough to build your own fund. SAAS (software as a service) has gross margins of 80% which is just about impossible in any other industry. These are market leading stocks in a market leading industry that is not going away anytime soon. It is a growth industry. Most of these stocks I listed are up for the year and several are at all time highs. Recession? What recession???

ChpBstrd

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Re: Stocks to buy for the long haul
« Reply #14 on: April 24, 2020, 10:50:39 PM »
Iíve been in the software and tech industry for 15 years. Taking the Peter Lynch approach, I invest in what I know. These are the tech stocks which have industry leading products that everyone is moving to or is locked into using for years or decades to come:

AAPL
AMZN
NFLX
GOOGL
CRM
SHOP
RNG
ZM
DOCU
ADBE
AVLR
BILL
MSFT
WORK

Thatís enough to build your own fund. SAAS (software as a service) has gross margins of 80% which is just about impossible in any other industry. These are market leading stocks in a market leading industry that is not going away anytime soon. It is a growth industry. Most of these stocks I listed are up for the year and several are at all time highs. Recession? What recession???

If I was to name my very close 2nd favorite strategy for playing the current crisis, it would be writing puts on these names until one can get assigned. My entire company went from an office that costs millions per year to working from home in just 2 weeks and had - no major problems! Eventually they'll wise up and start putting money into tech instead of real estate. There may be no vaccine for COVID-19, but tech is the pill everybody's buying. Physical offices, meetings, and cube farms are going the way of the typewriter and company Christmas party.

Looking at 2008-09, tech was the best place to be. Valuations were more reasonable back then; hence my put writing approach rather than buying outright.