Stocks to Buy and Hold for 5 Years ($JNJ, $RACE, $COST, $BUD, etc.)

Even though day trading gets all the press, I remain an advocate for Buy and Hold. The investment strategy has a number of benefits, including 1) lower taxes paid for long term capital gains (stocks owned for more than 1 year), and 2) you don’t have to be glued to a screen constantly, trying to make fast money.

If you’re a died-in-the-wool day trader, more power to you. But if you want to create a portfolio that doesn’t require perpetual babysitting and hyper-complex tax work, here are some stocks that should do well for you. Maybe not forever, but let’s say at least for 5 years.

These blurbs are far from exhaustive. Do your own research and let me know what other stocks you think should go in a 5-year set-it-and-forget it portfolio.

$BUD creeping across the daily 20ma and thru a little resistance.

— rahagar (@rahagar) Jul. 12 at 02:14 PM

Johnson & Johnson ($JNJ). $JNJ is one of the major stocks that saw very little decline in the last global financial crisis. Johnson & Johnson is an ever-more powerful player in pharmaceuticals. A mediocre Q2 has JNJ slightly discounted, but recent acquisitions and novel product offerings speak to an ongoing rise in valuation. The dividends just keep growing, too.

Ferrari N.V. ($RACE). There are many reasons to recommend the seemingly unstoppable $RACE. Compared to fellow luxury brand Tesla which trades at more than 3X the price of RACE without profits, RACE starts to sound like a bargain. Ferrari keeps finding ways to increase sales and revenue (with an emphasis on the revenue). What’s more, annualized earnings growth is estimated at 14-15% over the next five years by trusted analysts.

Costco ($COST). Some have fallen out of love with $COST; I have not. The present price freefall may be a real buying opportunity. Even as Amazon Prime slaughters retail, Costco remains the go-to bargain box for Gen X and up. Income and dividends are rising. I wouldn’t plan to hold $COST forever, but I think we’re looking at significant short term gains and ongoing stability for at least 5 years.

Anheuser-Busch InBev SA NV ($BUD). Another global giant with a recent price decline makes for a solid buying opportunity. BUD has been snapping up craft breweries (Wicked Weed), making interesting partnerships (Kuerig), and excellent financials make this a trustworthy buy for the near-to-mid term. Alcoholic beverages remains a competitive industry, but it helps if your annual revenue is close to $30 billion. The slight downturn that occurred after America’s right wing through a fit at Bud’s pro-immigrant stance seems to have become a distant memory. Get it while it’s cheap, then hold.

Honorable Mentions:
$MSFT, $MA, $SNY, $NKE, and on and on and on.

What’s going in your 5 year hold portfolio?