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For Immediate Release
Chicago, IL – March 9, 2018 – Zacks Value Investor is a podcast hosted weekly by Zacks Stock Strategist Tracey Ryniec. Every week, Tracey will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. To listen to the podcast, click here:
(https://www.zacks.com/stock/news/294965/want-to-be-a-buy-and-hold-investor-3-strategies)
Want to Be a Buy-and-Hold Investor? 3 Strategies
Welcome to Episode #84 of the Value Investor Podcast
Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio service, shares some of her top value investing tips and stock picks.
Do you want to be a buy and hold investor but just don’t know where to start?
Buy and hold investing is one of the toughest types of investing to do because it calls for you to go against human nature for the instant big payout. After all, why do we play the lottery? We love the idea of becoming a millionaire overnight.
Buy and hold investing is slow and slogging. The payout may not come for several decades. Who has the guts to stick it out that long?
But for those investors who do have the guts, buy and hold investing can pay off with big returns.
3 Strategies for Buy and Hold Investing
1. Start Young. The longer you have to invest, the more you’ll reap the rewards of compounding.
2. Diversify. Don’t just buy one stock or even two. What if one of them is a Bear Stearns or a Wachovia? Spread out your risk.
3. Don’t Get Fancy. You don’t need the latest fad stock or biotech wonder. Stick with the basics. Buy companies that have solid fundamentals and strong brands.
Stocks to Buy for a Buy and Hold Portfolio Today
When you read about successful buy and hold investors, they’re almost always invested in companies you’ve heard of.
Therefore, Tracey screened for big cap companies, with Zacks Ranks of #1 (Strong Buy), #2 (Buy) or #3 (Hold), which also had a value component of a P/E under the average of the S&P 500 which is about 17.5.
1. Diageo (LON:DGE) PLC (NYSE:DEO) isn’t technically a value stock. It has a forward P/E of 20. But it’s expected to grow earnings by 18% in fiscal 2018. The maker of Guinness, Baileys and Johnnie Walker also pays a dividend currently yielding a healthy 2.6%.
2. Mylan N.V. (NASDAQ:MYL) is dirt cheap. This drug company trades with a forward P/E of just 7.8. It also has earnings growth which is expected to be 17.1% in 2018.
3. Sony (NYSE:SNE) is big in entertainment but is also moving into the self-driving car market as it’s working on the sensors. It’s a value stock, with a forward P/E of 13.1. Sony also pays a dividend, currently yielding 0.3%.
4. AbbVie (NYSE:ABBV) is a rare growth and value stock. This biopharmaceutical has a forward P/E of 15.4 yet is expected to grow earnings by 33.9% in 2018. As an extra bonus, shareholders also get a dividend yielding 2.5%.
5. Walgreens Boots (NASDAQ:WBA) has pulled back off its highs so it’s cheaper than in January 2018. It trades with a forward P/E of 12.2. It’s closing on the Rite Aid deal in 2018 which will add another 1600 stores. Earnings are expected to rise 13.5% in fiscal 2018.
What else should you know about being a buy and hold investor?
Find out in this week’s podcast.
Breaking News: Cryptocurrencies Now Bigger than Visa
The total market cap of all cryptos recently surpassed $700 billion – more than a 3,800% increase in the previous 12 months. They’re now bigger than Morgan Stanley (NYSE:MS), Goldman Sachs (NYSE:GS) and even Visa! The new asset class may expand even more rapidly in 2018 as new investors continue pouring in and Wall Street becomes increasingly involved.
Zacks’ has just named 4 companies that enable investors to take advantage of the explosive growth of cryptocurrencies via the stock market.
Click here to access these stocks. >>
Tracey Ryniec is the Value Stock Strategist for Zacks.com. She is also the Editor of the Insider Trader and Value Investor services. You can follow her on twitter at @TraceyRyniec and she also hosts the Zacks Market Edge Podcast on iTunes.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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