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If you had to pick one stock for the next 18 years.

Posted on 6/5/16 at 2:15 pm
Posted by LSUengineer12
The Best Side
Member since Dec 2011
1850 posts
Posted on 6/5/16 at 2:15 pm
I opened a share builder acct for both of my Godchildren and make small biweekly deposits for them into it. I set it to where once $100 is available, it buys $100 worth of a certain stock.

One is a new born and the other is 2. If you had to pick a stock to invest in over the next 18+ years, what would it be?

Currently, it's been AAPL. Open to suggestions.
Posted by Crazy4OU
Fort Worth
Member since Oct 2005
80 posts
Posted on 6/5/16 at 2:20 pm to
V
Posted by iknowmorethanyou
Paydirt
Member since Jul 2007
6545 posts
Posted on 6/5/16 at 2:27 pm to
SGY. Plenty of bang for your buck.
Posted by jeepfreak
Back in the BR
Member since Oct 2003
19433 posts
Posted on 6/5/16 at 2:38 pm to
GE, XOM, PFE
Posted by TigeRoots
Member since Oct 2008
8505 posts
Posted on 6/5/16 at 2:58 pm to
I would set the buy price a lot higher than that. You will get eaten up with transaction fees.
Posted by dabigfella
Member since Mar 2016
6687 posts
Posted on 6/5/16 at 3:08 pm to
Apple

Apple is trading at 10x earnings right now think of its downside. Yes earnings could decline, but I wouldnt bet on it, new iphone 7 in a few months and high probability of a better watch and car in the coming years + god knows what else, people are deep in the ecosystem.

Apple has the biggest cash hoard on earth, theyre safe for years. Yes the stock may not grow leaps and bounds but with buybacks + dividends being raised, the stock is going to be an utter monster for years to come.

I love starbucks too, but apple is going to be a monster, all the nonbelievers can hop off and buy google, but the power of reinvested dividends + increased dividends is incredibly powerful when companies trade at low P/E. Thats why the old phillip morris was the best stock of all time, it traded at like 8x earnings and had a monster dividend

Unless of course pornhub goes public, then you go all in and dont think twice

In all honesty the QQQ is incredible bc its a fund and you get apple,google,amazon,facebook and microsoft in big quantities along with other tech. Thats probably all you need for the future in 1 investment
This post was edited on 6/5/16 at 3:12 pm
Posted by barry
Location, Location, Location
Member since Aug 2006
50336 posts
Posted on 6/5/16 at 3:48 pm to
quote:

I would set the buy price a lot higher than that. You will get eaten up with transaction fees.



This. You are gonna lose 5-8% or whatever you fee is per trade at 100%.

Also id buy them index funds if you want something for 18 years
Posted by LSUengineer12
The Best Side
Member since Dec 2011
1850 posts
Posted on 6/5/16 at 4:26 pm to
quote:

i would set the buy price a lot higher than that. You will get eaten up with transaction fees.



Great point. What are your thoughts on buy price?
Currently, they each get $10/biweek in their acct and I throw extra cash in it for birthdays and Christmas. So roughly every 20 weeks it purchases around a share..
Posted by dabigfella
Member since Mar 2016
6687 posts
Posted on 6/5/16 at 4:28 pm to
dont do sharebuilder, do direct DRIPs through the companies, not sure if apple offers one but many do i think the co is computershare, i personally dont use it but theyre real you can buy a set amount at set intervals to dollar cost average.
Posted by lynxcat
Member since Jan 2008
24118 posts
Posted on 6/5/16 at 4:30 pm to
Amazon. Because they gave every advantage and all trends are in their favor.
Posted by LSUengineer12
The Best Side
Member since Dec 2011
1850 posts
Posted on 6/5/16 at 4:34 pm to
I only chose sharebuilder because it's simple being that I bank with Cap One. They have a DRIP option and that's currently what I've got set up.
Posted by dabigfella
Member since Mar 2016
6687 posts
Posted on 6/5/16 at 4:43 pm to
Amazon is a great co, but it doesnt pay a dividend, obviously it can grow exponentially still but the thing with dividends is adding a bigger piece of the pie every quarter combined with a growth in the dividend is a monster monster return. Like if you take apple stock and it goes nowhere for 20 years and you just reinvest a dividend that grows at 9% even, not the share price just the dividend, you still get prob 3-4x your initial investment.

If apple goes up at all its significantly more
Posted by Joshjrn
Baton Rouge
Member since Dec 2008
26918 posts
Posted on 6/5/16 at 4:47 pm to
Why one stock? Sounds like a tremendous amount of unnecessary risk.
Posted by dabigfella
Member since Mar 2016
6687 posts
Posted on 6/5/16 at 4:51 pm to
people always say that but what if the world markets dont do much of anything for a while but specific things like nike or starbucks or amazon or facebook continue growing. Do you have faith that walmart,home depot, ross stores, countless other retail garbage, and old time stocks that boomed over the last half century do the same for the next 50 years? There's no sense in investing in the past, investing in the future is whats necessary and buying VTSMX or SPY or whatever is overdiversifying if thats even possible.

I dont see how any one of these is a terrible investment over the next 30 years

facebook
google
apple
amazon
microsoft
starbucks
nike

just stuff your portfolio with one or all of those and youll be fine
This post was edited on 6/5/16 at 4:53 pm
Posted by Joshjrn
Baton Rouge
Member since Dec 2008
26918 posts
Posted on 6/5/16 at 5:40 pm to
quote:

facebook
google
apple
amazon
microsoft
starbucks
nike


I'm not saying they are "terrible" investments. I'm saying they carry vastly more risk than the market as a whole. Can you really not conceive of a single scenario in which one of those companies doesn't exist in fifty years?

Shifting markets, new markets, rising competitors, lawsuits, bankruptcies, governmental regulation. It's impossible to control for things like that over the course of decades. Both Blockbuster and Enron looked great until they didn't.

I have no issue with people who choose to invest in companies instead of indexes. However, investing entirely in a single company is insanity to me, no matter the company chosen.
Posted by dabigfella
Member since Mar 2016
6687 posts
Posted on 6/5/16 at 5:48 pm to
The thing with these giant tech companies is we've never seen anything like them in our history. The margins, the amount of global GDP they could generate as they expand their tentacles. Facebook,Google,Amazon are nearly full blown monopolies at this point. Their moats are enormous whose breaking them??? If it was that simple to launch a google,amazon,facebook clone it wouldve been done, people have been trying. Augmented Reality IMO is the next big horizon in the tech world and its going to be enormous thats why i suggested the QQQ bc someone is going to nail it and its going to be remarkable. Look up googles investment in magic leap and tell me thats not the coolest thing youve ever seen, watch the demo

As for apple, they have the best ecosystem in the world, the best brand, and a loyal following, yes yes yes but blackberry blah blah, blackberry never had apples ecosystem,retail front, nor its grip with computer,laptops, and ipads. Apple is here to stay bc of that ecosystem which is music,payments,everything. That $200B+ cash hoard isnt something you burn through in a short while, it will be a very long time even if apple began dying tomorrow before a company could burn that type of cash.

Enron was an accountin sham and blockbuster was a 1 trick pony, if you look at all the companies that went bust, the big ones, they were mostly 1 trick ponies. Look how diversifed the ones i just named are: google adwords ir probably the most efficient business in the history of mankind, look at the margins it generates. Amazon shuts down? People would literally be lost, its an integral part of our lives from shopping to our tvs now. Facebook is a printing press, the monopoly is monstrous its even taking some of googles ad business, fb is projecting like 35% growth for the next few years thats just disgusting.

We've never seen anything like these 350B+ companies like apple,google,facebook,amazon. They're literally the size of exxon, blockbuster was never up there in market cap
This post was edited on 6/5/16 at 6:06 pm
Posted by Joshjrn
Baton Rouge
Member since Dec 2008
26918 posts
Posted on 6/5/16 at 7:25 pm to
I agree with everything you just said. But you didn't answer my question:

Can you really not conceive of a single scenario in which one of those companies doesn't exist in fifty years?
Posted by Ace Midnight
Between sanity and madness
Member since Dec 2006
89451 posts
Posted on 6/5/16 at 7:37 pm to
K and reinvest dividends.
Posted by Grits N Shrimp
Kansas City, MO
Member since Dec 2014
646 posts
Posted on 6/5/16 at 7:40 pm to
Why FB?
Posted by Paul Allen
Montauk, NY
Member since Nov 2007
75096 posts
Posted on 6/5/16 at 8:01 pm to
Pfizer
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