3 stocks that I will “never” sell
“Never say never”, right? If 90% of a company I’m invested in is crushed by a meteor, there’s a good chance I’ll sell my stock and move what’s left elsewhere. Likewise, if it turns out that the only product from a company I am invested in is causing birth defects, the sale may well be in order. However, such events do not happen that often – and not, usually, in large, large-scale companies.
So here are three of my stocks that I plan to never sell – or at least not until much of my retirement, when I need more income.
1. Berkshire Hathaway
Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B), with a market value recently exceeding $ 600 billion, may not yet be a household name, but its leader for more than 50 years may be: it is led by Warren Buffett. I’ve been a shareholder for about two decades, I think, although I would like it to be four decades, because Buffett has been propelling his company’s shares upward for many years, with an average annual growth rate of around 20 years. % – against 10% for the S&P 500 – and the fastest growth occurred in the early years of the business.
Still, there are a lot of things to love about Berkshire that will keep me hanging on for many years to come – despite Buffett turning 91 this year! (He already has talented investment and management lieutenants in place, and a succession plan.) On the one hand, it’s a very diverse company, with dozens of companies he owns in their entirety ( such as GEICO, Benjamin Moore, See’s Candies, International Dairy Queen, and the BNSF Railway) and many of which he owns large chunks, via shares (such as Apple, Coca Cola, Bank of America, and American Express).
Much of Berkshire’s holdings are in fairly reliable industries, such as energy and insurance. No matter what the economy does, people and businesses will need energy and insurance. Much of it is also related to houses, such as its extensive network of real estate agents and its flooring, brickwork, insulation, etc. business. Housing is cyclical, but it continues to roll. I have no doubts that these companies will continue to generate shareholder value.
You probably know Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) through its main subsidiary, Google. It’s the dominant search engine, of course, but Alphabet encompasses other companies as well, such as the Android operating system, YouTube, FitBit, Nest, and the Google Play Store. YouTube is a major property, even giving Netflix a run for its money. Meanwhile, Alphabet also has Google Cloud business, which grew 54% in the second quarter, year-over-year. In total, Alphabet’s market value recently approached $ 1.9 trillion.
If you’re worried that those in Washington are destroying some of these big tech companies, don’t worry too much about Alphabet. If it were to be dismantled, it could actually release more value, as investors will more clearly see the value of each part of the business that has been split.
Amazon.com (NASDAQ: AMZN) is another monster company – its recent market value topped $ 1.6 trillion – with a lot of tentacles. You know of course the dominant global e-commerce company, but you might not realize that it also owns the dominant cloud computing company, Amazon Web Services (AWS), which made $ 14.8 billion. dollars in the second quarter of 2021., up 37% from levels a year earlier.
Amazon is another company watched by those with competition concerns, and some suggest it could part ways with AWS – profitably – to appease critics. My colleague Leo Sun, for example, points out that even without AWS, Amazon would have many growth drivers, such as in its online advertising business, recently the third behind Alphabet and Facebook.
Amazon’s Prime ecosystem is getting more and more loyal with each new feature it adds, and members are already enjoying fast delivery, Prime Video, Prime Reading, Music Prime, Amazon Gaming, Amazon Photos and more. Moreover. Meanwhile, the company is spreading in many different directions, such as grocery shopping and even healthcare, in part through its purchase of PillPack.
These companies certainly seem too big to fail to fail, which is why I aim to keep them as close as possible forever – although I keep an eye out for them too; if their outlook appears to be deteriorating, the selling will of course be on the table. It is hard to imagine them failing, however, as just growing to their current size means they are able to adapt to change and thrive in many different environments.
This article represents the opinion of the author, who may disagree with the âofficialâ recommendation position of a premium Motley Fool consulting service. We are heterogeneous! Challenging an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.