Sure, never is a long time, but we're long-term investors around here, and our Motley Fool investors are happy to play the long game when it comes to investing in Vanguard Information Technology ETF (NYSEMKT:VGT), Celgene (NASDAQ:CELG), and Walt Disney (NYSE:DIS).
Ride the tech wave higher
Dan Caplinger (Vanguard Information Technology ETF): I'm not sure that there's a stock I own that I couldn't contemplate selling if the circumstances were right. However, among my longer-term holdings in exchange-traded funds, there are selections that have produced such strong gains that they'd be best used either for charitable gifts or to leave to heirs with a stepped-up basis. Vanguard Information Technology ETF is one of those holdings.
Vanguard Information Technology has produced amazing returns simply by owning many of the best-performing stocks in the technology sector. From e-commerce to social media, Vanguard Information Technology has taken full advantage of the trends that have generated the most upward momentum in tech sector stock prices, and it's done so in a way that hasn't left it overly exposed to the risk factors of any one stock. Vanguard Information Technology has also emerged as an unexpected source of modest dividend income, as enough stalwarts in the industry have embraced dividends that the fund has a yield of more than 1%. Capital appreciation has made the ETF a four-bagger since 2009, and with growth opportunities like cloud computing, artificial intelligence, self-driving automobiles, and the Internet of Things propelling its constituent stocks forward, Vanguard Information Technology has plenty of upside left in the long run.
Invest in game-changing medicine
Todd Campbell (Celgene): I'm a sucker for companies that prove time and time again that they know how to dominate their industry, and perhaps that's why I view Celgene as a top stock that I never plan on selling.
Celgene is best known for being the market share leader in medicine used to treat patients with multiple myeloma, but the company's proving it knows a thing or two about tackling other diseases, too.
In 2014, it launched its first autoimmune disease drug, Otezla, for psoriasis, and despite having never marketed a drug in this indication before, Otezla enjoyed one of the fastest ramp-ups in sales ever in this indication. Otezla's already a billion-dollar blockbuster, and its sales continue to grow quickly, increasing 49% to $358 million in the second quarter.
Soon, Celgene could follow up Otezla with another success in yet another indication: multiple sclerosis. The MS drug market is valued at about $20 billion annually, and based on phase 3 results for Celgene's ozanimod, Celgene could wind up up marketing the best oral MS drug in its class. An application for ozanimod's approval should be coming this year, and that means that it could be competing for billions of dollars in market share sometime in 2018.
Assuming ozanimod's approval goes off without a hitch, then Celgene could end up with $5 billion blockbuster drugs on the market in 2019. No wonder management is targeting sales of at least $21 billion and earnings per share of at least $13 per share in 2021, up from $11.2 billion and $5.94 in 2016. Admittedly, anything can go wrong (and it often does in biotech), but this company's track record is good enough for me to want to own it forever.
Disney shareholder for life
Demitri Kalogeropoulos (Walt Disney): Walt Disney is one of just a few Dow stocks that are in negative territory this year. Investors are worried about sinking results in the ESPN business and a media segment that's hurting as TV watchers move online.
It would take far bigger concerns to get me thinking about parting with my Disney shares, though.
After all, I'm impressed with a parks and resorts segment that's setting records as guest spending rises and consumers flood Disney attractions even as admission prices rise. There's plenty more to be optimistic about in this segment as well given that the Shanghai, China, resort is only just entering its second year, having surpassed management's launch targets.
Meanwhile, Disney's studio business should have a banner fiscal 2018. There are four movies slated in just the Marvel universe. Pixar has two films on the way, and after a great outing with The Jungle Book, Disney has four additional live-action releases of its intellection property set for theaters, including Dumbo and The Lion King. Of course, there's also a new chapter in the hit Star Wars franchise for investors to look forward to.
With its majority purchase of BAMTech and a new Netflix-style streaming service in development for 2019, Disney should find a way to better monetize its ESPN and TV content. One great thing about owning this stock, however, is that its diverse business empire tends to keep setting records even if some divisions struggle.
Dan Caplinger owns shares of Walt Disney. Demitrios Kalogeropoulos owns shares of Netflix and Walt Disney. Todd Campbell owns shares of Celgene. His clients may have positions in the companies mentioned. The Motley Fool owns shares of and recommends Celgene, Netflix, and Walt Disney. The Motley Fool has a disclosure policy.