(0:35) - What Should You Be Buying As A Long Term Investor? (3:00) - Tips To Help Build A Strong Portfolio (9:35) - Understanding Stocks That Are Trading Sideways (15:30) - Episode Roundup: SH, ULTA, TRIP, MCD, AMZN, GM Podcast@Zacks.com
Tips on how to pick stocks to own for the next 5 to 10 years.
Welcome to Episode #270 of the Zacks Market Edge Podcast.
Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.
This week, Tracey is going solo to talk about how to pick stocks for a long-term buy and hold portfolio.
Recently, she did a podcast talking about Ed, a 91-year-old investor, who grew $50,000 to $5 million over the last 31 years by owning some great stocks.
But she got questions on Twitter asking how to pick stocks if you are going to buy and hold.
How did Ed know what stocks to buy?
Sometimes It’s Luck
Ed, 91-year-old investor, had worked at
Sherwin Williams ( for many years and when he retired, he got a stock package, most of which he still owns. SHW Quick Quote SHW - Free Report)
Sherwin Williams shares are up over 9,000% in the last 31 years so Ed got lucky. He worked at a great American company that continued to take market share long after he stopped working there.
But what if you don’t work at a publicly-traded company or it’s not one of the “winners”?
Tips on Finding Great Stocks
First, you should have a portfolio of between 10 and 20 stocks in a long-term portfolio so that you have diversity.
Second, you could follow the Peter Lynch strategy of “buy what you know.”
Ulta Beauty (in 2014 because she was shopping there and loved their rewards program. ULTA Quick Quote ULTA - Free Report)
But Tracey also bought
TripAdvisor ( because she used their product all the time to plan her travels. But she ultimately had to sell those shares as the business was challenged and it was losing ground to competitors. TRIP Quick Quote TRIP - Free Report)
Over the last 5 years, TripAdvisor has fallen 25% while the S&P 500 gained 100%.
Do you have a restaurant chain you love?
In the 1970s, many parents were buying the new Happy Meal at a restaurant chain called
McDonald’s ( and decided to buy the stock. MCD Quick Quote MCD - Free Report)
You might have decided to buy
Amazon ( for the same reasons, because you’re using it every day to order something or watch something or listen to music or a podcast. AMZN Quick Quote AMZN - Free Report)
What else do you need to know about finding stocks to hold for the long-term?
Tune into this week’s podcast to find out.
[In full disclosure, Tracey owns shares of ULTA and AMZN in her personal portfolio.]
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