There are different kinds of investors—some investors chase growth, some chase value, others chase momentum. All investors irrespective of their investment inclination secretly wish they could buy some stocks, forget about them, and check their portfolios after a couple of years to find out that the stocks have scored decent gains. Forever stocks are hard to find but they are sort of stocks that you can buy for a newborn and you can be sure that they’ll always have a secure financial safety next in investments when they are 18, 25, 40, 60 years old.
Forever stocks are simply the stocks of established companies with a proven history of consistent growth. Companies with forever stocks offer realistic growth potential that makes them sustainable. Forever stocks also have economic moats that reduce the odds of them being redundant or going out of business. However, Josh Kohler, an analyst at snp investments observes that “no stock is a guaranteed winner but forever stocks have shown commendable ability to weather the storms that mark the beginning of the end for other companies”. This piece looks at 3 stocks that you can buy and hold forever.
3M Company (NYSE:MMM) is a technology company that operates through five segments. The firm operation segments include industrials, healthcare, consumer, electronics & energy, and safety and graphic. 3M’s market segments serve a wide range of markets such as automotive original equipment manufacturing, pharmaceuticals, consumer retail, power generation, and construction.
With a market cap of $122.07B and a stock trading somewhere around $204.55 per share, 3M has shown a consistent ability to reinvent itself and stay relevant through different markets. In the year-to-date period, the stock of 3M has booked 14.55%% gains and it is up 119.5% in the last five years.
Baidu Inc (NASDAQ:BIDU) is the Chinese search giant that can be likened to Google. Baidu makes its money through three business segments namely search services, iQiyi, and transactional services. Nonetheless, I am excited by the potential that Baidu has to be a global leader in artificial intelligence because of the committed ambition of its founder Robin Li. Baidu is at a vantage position as a forever stock because it is the Google of China and China is the world’s largest market.
More so, with a market cap of $77.15B and a stock trading somewhere around $222.48 per share, Baidu has a near-monopoly of the market with an economic moat that makes it hard for any other firm to steal its market share. In the year-to-date period, the stock of Baidu has booked 35.32% gains and it is up 80.29% in the last five years.
Corning Incorporated (NYSE:GLW) is engaged in the manufacture of specialty glass and ceramics. Corning runs it business through 5 business segments namely Display Technologies, Optical Communications, Environmental Technologies, Specialty Materials, Life Sciences and All Other. If you have a mid-level to premium-grade smartphone or tablet, you’ll most likely have heard about Corning Gorilla glass used in the display of such devices.
With a market cap of $25.46B and a trading price somewhere around $28.19 per share, Corning has demonstrated an impressive ability to reinvent itself and stay relevant in business over the years. From an ancient history of making ceramics, the firm now rubs shoulders with the most innovative tech firms to deliver the future of computing. In the year-to-date period, Corning has booked 16.15% gains and it is up 137.7% in the last five years.