9 Stocks to Buy and Hold for Decades

Author: Daniel B. Kline | September 07, 2020

Stock market chart

Source: Getty Images

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Buy and hold

The stock market is easier than you think -- if you have patience. Buy good companies and hold them for a very long time. Don't worry about prices going up or down for a day, a quarter, or even a year. As an individual investor, your biggest advantage is time. Take advantage of that and, in the long run, you should be in great shape. These 10 stocks will perform well as long as you hold onto them and wait.

5 Winning Stocks Under $49
We hear it over and over from investors, “I wish I had bought Amazon or Netflix when they were first recommended by the Motley Fool. I’d be sitting on a gold mine!” And it’s true. And while Amazon and Netflix have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Simply click here to learn how to get your copy of “5 Growth Stocks Under $49” for FREE for a limited time only.

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The exterior of a Costco store with many cars in the parking lot

Source: Costco

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1. Costco

Costco (NASDAQ: COST) has a perfect business that's nearly immune to competition and the internet. It makes its profits from selling memberships and keeps those members happy by offering them low prices. It's a recipe that lets the company make adjustments if it sees membership tick down and that keeps it performing steadily well.

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Mickey and Minnie Mouse greeting visitors to Disneyland.

Source: Disneyland

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2. Walt Disney

Walt Disney (NYSE: DIS) is a prime example of a company that dipped during the pandemic. That was a great buying opportunity because the company has best-in-class theme parks, a top-tier movie business driven by superior intellectual property, and strong television properties. Now, the company can add in its streaming network, which grew very quickly due to the pandemic.

ALSO READ: 11 Reasons to Buy Disney and Never Sell

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A modern Target store in an urban setting

Source: Target

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3. Target

There was a time not that many years ago when Target (NYSE: TGT) came with some questions for investors. CEO Brian Cornell has answered those questions.

The company has revamped its business building around owned-and-operated brands while also focusing on omnichannel operations. It's a smart combination that has the brand positioned to be a major retail winner for a long time to come,

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A white Walmart semi truck driving on the road

Source: Walmart

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4. Walmart

Walmart (NYSE: WMT) has long been a retail behemoth in the brick-and-mortar space. Now, it's well positioned as a major player in the online and delivery space. Doing that required the company to spend billions, which it chose to do and which has it positioned to maintain its dominance.

5 Winning Stocks Under $49
We hear it over and over from investors, “I wish I had bought Amazon or Netflix when they were first recommended by the Motley Fool. I’d be sitting on a gold mine!” And it’s true. And while Amazon and Netflix have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Simply click here to learn how to get your copy of “5 Growth Stocks Under $49” for FREE for a limited time only.

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Amazon employees unloading a truck

Source: Amazon.com

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5. Amazon

Amazon (NASDAQ: AMZN) has two massive businesses. It's, of course, a retail giant that has a growing brick-and-mortar presence. It also has Amazon Web Services, which is a major player in the cloud space.

ALSO READ: Delivery Drones Could Save Amazon Billions

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A building on a Microsoft campus

Source: Microsoft

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6. Microsoft

Satya Nadella has turned Microsoft (NASDAQ: MSFT) into a dominant force. That's a turnaround from the direction the company was headed in under former CEO Steve Ballmer.

Now, the tech giant has pivoted more of its revenue to a subscription-driven model. It has also set itself up to be a major leader in the cloud and with the Internet of Things.

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Two children playing with new iPhones in an Apple store

Source: Apple

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7. Apple

Apple (NASDAQ: AAPL) has an incredibly loyal customer base willing to shell out money for its high-priced devices. It also has a growing services business that has massive margins. The company has gotten so big (over $2 trillion in market cap) that even though it dominates wearables with its Apple Watch, that's barely relevant to its bottom line.

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Dollar General cashier checking out a customer

Source: Dollar General

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8. Dollar General

Dollar General (NYSE: DG) may not seem like it belongs on this list. It's not as upmarket as many of the other stocks, but it's as strong a business. This is a fast-growing company that adds about 1,000 stores every year. Dollar General knows it business and its customers. It's an impressive model in execution that has years of big growth ahead of it.

ALSO READ: 3 Top Retail Apocalypse-Proof Stocks to Watch in September

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A Starbucks barista arranging rows of carryout orders

Source: Starbucks

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9. Starbucks

The pandemic has been especially challenging for Starbucks (NASDAQ: SBUX). It had to close all of its stores and switch to a drive-thru, pickup, and delivery model. The good news is that the company was set up to do that.

This will help it thrive in a post-pandemic world. Starbucks now has more digital customers, more people using mobile order and pay, and a stronger future.

5 Winning Stocks Under $49
We hear it over and over from investors, “I wish I had bought Amazon or Netflix when they were first recommended by the Motley Fool. I’d be sitting on a gold mine!” And it’s true. And while Amazon and Netflix have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Simply click here to learn how to get your copy of “5 Growth Stocks Under $49” for FREE for a limited time only.

Previous

Next

Alarm clock next to calendar

Source: Getty Images

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Use your advantage

As a long-term investor you have the advantage of being able to give your portfolio time. That means that you can let good companies grow and prosper over years.

Doing this requires discipline. It's not easy to resist the urge to sell when a stock goes down or when it hits a new high. Remember that you're buying shares in companies you believe in for the long term.

Don't check prices daily. Think in terms of years, not months, and only sell when you hit a goal (it's time to retire would be one) or you no longer believe in your original investing thesis.

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. Daniel B. Kline owns shares of Apple, Microsoft, Starbucks, and Walt Disney. The Motley Fool owns shares of and recommends Amazon, Apple, Microsoft, Starbucks, and Walt Disney. The Motley Fool recommends Costco Wholesale and recommends the following options: long January 2021 $60 calls on Walt Disney, long January 2021 $85 calls on Microsoft, short January 2021 $115 calls on Microsoft, short January 2022 $1940 calls on Amazon, long January 2022 $1920 calls on Amazon, short October 2020 $125 calls on Walt Disney, and short November 2020 $85 calls on Starbucks. The Motley Fool has a disclosure policy.

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