03-18-2014, 09:23 PM
Hi guys, new to the site and relatively new to DGI. I am in my late 20s and pretty soon will be wanting to start building my nest egg for retirement. I wanted to get a discussion going around stocks you hold which you believe will be of the same caliber today as they will be 50 years from now. It is a concern of mine, since I won't be retiring for many years, that I get stocks that will continue to grow regardless of how the world changes. For example, I don't want to buy CVX if I feel there will be an energy revolution as someone discovers a cheap way to harness power through hydrogen 30 years from now(I don't necessarily feel this way).
My short list is as follows:
REITs - Can't make more land. Currently they have a favorable tax structure, but I feel it causes them to be over valued compared to traditional corporations. On top of that you have to pay more in taxes on their dividend. When the time is right, I will certainly be a buyer in a tax sheltered account.
MCD - Food will never go out of style. Pair that with food that is fast, tasty(well the chemicals are anyways) and an American(and on the way to being a global) tradition, I think its sure to be around in 50 years. I see no reason why global growth won't continue. I have also heard them referred to as a land company with a fast food element, since they own most of their property, but I will need to do more research on the specifics.
JNJ - Drugs in one more or another will be here 50 years from now. That and their other staple of modern day "necessities" will keep them in business long after I am dead, I'm sure.
UL/PG - Like JNJ, they produce things that won't go out of style ever.
PEP/KO - Snacks and soda are popular all over the world. Sugar and salt are easy sells when put together correctly and that's what PEP/KO does. Growth from all over the world should continue well into my retirement.
INTC - Computers and their microchips will continue to become bigger and bigger parts of our lives. I don't see the use of computers slowing.
BBL/BHP - Minerals will always be needed to make anything.
SO - Power companies, especially those with nuclear plants will continue to be in demand domestically and globally. If we aren't producing electricity, we have much more to worry about than our stock portfolio.
I would love for others to chime in on these and others you may have in mind.
My short list is as follows:
REITs - Can't make more land. Currently they have a favorable tax structure, but I feel it causes them to be over valued compared to traditional corporations. On top of that you have to pay more in taxes on their dividend. When the time is right, I will certainly be a buyer in a tax sheltered account.
MCD - Food will never go out of style. Pair that with food that is fast, tasty(well the chemicals are anyways) and an American(and on the way to being a global) tradition, I think its sure to be around in 50 years. I see no reason why global growth won't continue. I have also heard them referred to as a land company with a fast food element, since they own most of their property, but I will need to do more research on the specifics.
JNJ - Drugs in one more or another will be here 50 years from now. That and their other staple of modern day "necessities" will keep them in business long after I am dead, I'm sure.
UL/PG - Like JNJ, they produce things that won't go out of style ever.
PEP/KO - Snacks and soda are popular all over the world. Sugar and salt are easy sells when put together correctly and that's what PEP/KO does. Growth from all over the world should continue well into my retirement.
INTC - Computers and their microchips will continue to become bigger and bigger parts of our lives. I don't see the use of computers slowing.
BBL/BHP - Minerals will always be needed to make anything.
SO - Power companies, especially those with nuclear plants will continue to be in demand domestically and globally. If we aren't producing electricity, we have much more to worry about than our stock portfolio.
I would love for others to chime in on these and others you may have in mind.