Archive for March 4, 2012
Warren Buffett is famous for being the best investor in the world. Many times, Buffett has stated that his ideal holding period is “forever.” The following three stocks look to be good long term investments regardless of the daily gyrations of the S&P 500 because these stocks have delivered their investors real, tangible value over many decades and market cycles. The following three names offer value but no investment on Earth is 100% risk free. According to the PE 10 measure, the overall stock market is not “dirt cheap” at 23X the last ten years of earnings, so we have to look for stocks that offer high quality, deep discounts to intrinsic value, and a nice dividend yield when available. With these three stocks, consider owning them as long as the underlying fundamentals support your investment thesis. long term capital gains, transaction costs, and compound interest are all good reasons to buy and hold stocks as an asset class in general, but because anything can happen in the short run, investors have to be patient. Don’t concentrate your holdings in one issue and don’t buy stock with money you may need to spend in an emergency — you can’t hold a stock forever if you need money today.
Read the rest of this article here:http://seekingalpha.com/article/407901-three-long-term-value-stocks