The stock market is a great place to make some good money through wise investments. Investors are encouraged to constantly look for stocks to watch and stocks to buy. Some of these individuals even think that they can easily double their investment in a short amount of time. In this environment, it seems strange to discuss which stocks to buy and hold for the long term. Nevertheless, this article focuses on why this is a good strategy when buying stocks on Nasdaq.
Why Buy And Hold Nasdaq Stocks?
When you are investing your own money in Nasdaq stocks, you should, of course, look for stocks to invest in that seem to have a good future. When buying stocks on Nasdaq, often there is a correlation between how much you trade and how poorly your investments fare. In fact, this has been verified by 95% of day traders considered to be the most aggressive and active of all market participants. A number of these individuals lose money by being too active for their own good. If you are buying stocks, consider carefully before you sell them quickly.
You Are In Good Company If You Buy and Hold Stocks
Warren Buffett, who knows a thing or two about investing, has some opinions about buying stocks on Nasdaq. If you are buying stocks, you should take a note from Warren Buffett, whose favorite holding period is “forever.” In fact, that is how Buffett has a track record that most people looking to play the stock market and an ability to find stocks to invest in would envy.
If you are looking for long term stocks to buy, here are ten suggestions of stocks to invest in:
# 1 – 3M (MMM). If you want a stock to buy that is nearly guaranteed to only increase as time goes on, check out 3M. The company makes everything from office supplies to healthcare products to the power transformers you see perched on top of power-line poles. Additionally, 3M has managed to pay, and even increase, its dividend every year since 1977.
#2 – AT&T (T). Shares of telecom giant AT&T Inc. (NYSE:T) have not been great lately, but, this is likely not a permanent state. It certainly should not remove AT&T from you list of stocks to buy. The stock is down 14% from its mid-2016 peak, despite the fact that most other stocks are up for the time-frame. Nevertheless, if your intended time-frame really is “forever,” a tough couple of years is just that–and nothing compared to the potential, eventual payoff. Additionally, if AT&T’s proposed deal with Time Warner goes through, the stock’s value will only increase.
#3 – Alphabet (GOOGL, GOOG). Another stock to watch is Google parent company Alphabet Inc. (NASDAQ:GOOGL, NASDAQ:GOOG). The company missed last quarter’s earnings estimate and posted a profit of $9.70 per share rather than the expected $9.98. However, the company’s revenue was up 24% year-over-year and its net income grew 11% from the year-ago quarter. This moves Alphabet Inc from the “stocks to watch” category to the “stocks to buy” category.
#4 – American Water Works (AWK). People need water to wash their clothes, cook food, and to drink to live. This means that American Water Works Company Inc., which provides water and sewer services for 15 million people, is a stock to invest in, as its services will never go out of fashion. This makes American Water Works Company Inc. an excellent stock to buy.
#5 – Berkshire Hathaway (BRK.B, BRK.A). For over 50 years, Berkshire stock impressively performed nearly twice as well as the S&P 500 has, no doubt due to the talented people running it. Do your portfolio a favor and add Berkshire Hathaway to your list of stocks to buy.
#6 – Colgate-Palmolive (CL). Much like water and sewer services, Colgate-Palmolive’s products, such as Colgate toothpaste, Palmolive dish soap, Speed Stick deodorant, and Cuddly fabric conditioner, help make our lives cleaner and are often repurchased. This makes Colgate-Palmolive a smart stock to buy.
#7 – Johnson & Johnson (JNJ). Like 3M, Johnson & Johnson manufactures a number of medical, surgical, and healthcare products, including brands like Band-Aids and Tylenol. The need for these products will never go away, especially as Baby Boomers age, making Johnson & Johnson a smart stock to buy.
#8 – Southern Co (SO). This utility stock is a stock to buy because, even in economic downturns, most people will pay their electricity bills. Additionally, Southern Co has little competition in its market and most requests for rate hikes are also approved without question. Southern Co has had equally consistent dividends, and has not failed to increase its annual payout in two decades.
#9 – Walmart (WMT). Online shopping is popular, but, a lot of people still shop at brick and mortar stores. Walmart has even managed to perhaps take on Amazon, or at least keep the online giant at bay. Last quarter’s same-store sales grew 2.6%, making Walmart a stock to watch and a stock to buy.
#10 – Waste Management (WM). People are always going to make trash, and they will always want someone else to take it to the county dump for them. This is where Waste Management comes in, providing garbage-pickup services for 21 million North American customers making Waste Management a smart stock to invest in.
Before Buying Stocks, Here’s What You Need to Know
The stock market can be volatile. These Nasdaq stocks are perhaps not as volatile as penny stocks–stocks under $5, or even stocks under $1, that have little regulation or oversight–but, all experiences with the stock market have risks. However, you can minimize your risks by investing wisely and understanding that even the solid stocks we discussed above will have ups and downs. This potential for volatility should not dissuade you from seeking out stocks to invest in. With a bit of research and a fair amount of patience, your investment can turn taking a chance on a Nasdaq stock into a nice return.