what is a good stock for long term growth?

Question

please explain why you like it.

dredude52, there are always good stocks available no matter if the market is down.

Answer 1

I like these long term stock picks. The idea is to try and forecast what will survive as a product or service for the next 60 years. My pick on this one is Archer Daniels Midland (ADM). Farming corporation specializing in corn ethanol. Just laid down the infrastructure to boost capacity and hired a big oil exec as their CEO. With the future of high oil prices looming over the world, everyone is looking for cheaper and greener sources of energy. There are several countries that have shown successful models of flex-fuel vehicles that give the driver/owner the option of eithe gas or ethanol. Already in the US several hundred thousand cars are flex fuel ready and the owners don't even know it yet. Now gas stations will have an incentive to add ethanol pumps to their stations. Before it used to be a catch 22 situation where no one wanted to build an alternative fuel car because there was no infrastructure to fuel it and the fuel industry didn't want to build the infrastructure because there wasn't the demand for it. Flex-fuel cars bridge that gap and ADM is poised to capitalize on it for the next 60 years.

My two cents and a nickel for free. Hope that helps.

Answer 2

There are no "good" stocks in a down market.


The best way to do anything yourself is to learn something about it first. You'd be surprised at the thousands of books available on this one subject at your local library.

But most people spend more time deciding the color of their new car, than they do on a mutual fund advisor, for example.

Are you really wanting to do this yourself, or are you asking about someone who is an expert who can do it for you?

If you invest in the stock market right now, or just buy into all the ETF's you can afford, it's a crap shoot, like rolling the dice, and the odds are probably not in your favor, whether you have an expert fund manager or not, because mutual funds are always "in" the market.

They say "Buy and Hold" for the long term is better, but that depends on when you get in, and what your definiton of "long term" is. The phrase "Buy low and sell high" infers that you buy after a decline; decidedly not the case here.

The Dow has approached all-time highs last seen in Jan 2000 and failed, so if your long-term definition is more than seven years, then you won't mind waiting another seven years for a profit.

In my opinion, the name of the game is capital preservation. When the risks are high, like right now, you get out of the stock and bond markets and park your cash in a interest bearing money market fund or CD or Treasury Bill.

This is simply not a good entry point for investors. Be patient, wait a few months, and you'll be able to buy much more stock a lot cheaper, the risks will be lower (even though they will seem higher), and your chance of success greater.

If you wish to research the “Buy and Hold Strategy” further, or perhaps trade yourself, I recommend two book titles. One is called "Which Is Better, Buy-and-Hold or Market Timing?" The other is "Do You Have What It Takes to Be a Market Timer?" They will give you plenty to think about.

Answer 3

I prefer mid cap stocks. Most have been around long enough for a good record of growth and still have room to grow. A couple that I like are Headwaters and Electronic Arts. Headwaters is a company that involves concrete and coal. It's getting hammered now because a tax credit is expiring. They have many other oars in the water and will continue to grow after that happens. ERTS makes video games and is in a lull right now since PS3 isn't out yet. Both are selling at great prices if you can handle the ups and downs.... Don't come looking for me if they don't go up right away... Make sure you do your own research to validate mine.

Answer 4

I like Vanguard's VEURX European Stock Fund. Though it was not my best performer last year, I made nearly 30% last year and have done better than 25% overall since intially buying into the fund. It is not tied too much to the Dow and seems to be a solid investment for my future.

Answer 5

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Answer 6

I read that Phillip Morris (MO) delivers about 10 percent a year. Also check out Bear Sterns (BSC) which over long period keeps going up. Prudential (PRU) and Goldman Sachs (GS) also I think would be fine.

Take a look, I believe this answer your question.

Answer 7

Death is always a good investment, especially in a down market. You should really look into it.

Answer 8

Wal-Mart, because it is one of the fastest growing retailers. It's around for the long term.

Index funds are always a good bet.

Answer 9

MacDonalds...people are always going to be eating there. haha