
The 10 Best Stocks to Hold Forever
Warren Buffett, Goldman Sachs, John Kerry...
maybe even YOUR own Congressman already own many of these stocks.
Now regular Americans like you and I can pull back the curtain and buy
these "forever" ideas. My advice: Buy them, forget about them, and hold
them forever.
Read below to get the
names and tickers of these stocks... |
Dear Reader,
Around our research office in Austin, Texas, we just call them our
"Forever" stocks. We've talked about them so much over the past few
months, the nickname is just easier. Everyone here knows exactly what
we're talking about.
Put simply, this is the set of stocks you can buy today and hold for the
rest of your life. When you own them, you no longer need to worry about
things like inflation or deflation... bear markets or recessions...
flash-crashes or rising interest rates.
For example...
I've got more details on each of these ideas --
including several names and ticker symbols -- a little later in
today's report.
Just know that this sort of "worry-free" performance is exactly the
reason many of the world's richest investors, politicians, and
businessmen have owned shares of these stocks for decades, using them to
obliterate the market.
Let me show you what I mean...
One of our "Forever" stocks is owned by a staggering 21 members of Congress.
James Sensenbrenner Jr. (R-WI) reports that via his wife, he has a stake
of up to $500,000 in the stock. And in
2010 (the last year data was available), that stake earned at least $15,000 in dividends from the shares.
You can see for yourself in his latest financial disclosure I had our
research team dig up on the Representative, courtesy of OpenSecrets.org:

Here's the funny thing. When you find a stock that a herd of Congressmen love... you usually find
that some of the
richest people in the world also invest in it. It's almost like there
is a direct link between the two...
In fact, Representative Sensenbrenner and his wife could shake hands with the world's
richest man -- Mexican telecom magnate Carlos Slim -- at this
company's annual meeting. That's because along with a couple dozen
members of Congress,
Mr. Slim also has a stake in
this world-dominating company... owning more than 14,800 shares worth
$1.2 million.
It's the same story with another "Forever" stock I found.
It's owned by
dozens of the market's biggest players.
Legendary investment firm
Fidelity owns more than 12,800,000 shares worth more than $8 billion. Goldman Sachs owns another
2,300,000 shares.
More than 25 members of Congress also own the stock.
That includes Jane Harman -- the third-richest member of Congress, with
an estimated net worth of $326 million. That is to say she was
the third-richest member of Congress.
Ms. Harman resigned in 2011. At last count, she held over $315,000
of this company's stock.
This company also counts former presidential candidate John Kerry (D-MA)
as an investor. He has an interest worth more than $600,000.
But what's most surprising about this select group of 10 stocks I've
identified? It's not the fact that millionaire Congressmen... or
billionaire "super" investment firms like Fidelity and Goldman Sachs... are lining their
pockets with the shares.
Instead, it's that everyday investors like you, your family, and your
friends are able to invest in these exact same companies.
Let me be clear -- these ideas ARE NOT solely reserved for
Congressmen, billionaires, or the elite.
In fact, people just like you have been making money from these types of
stocks for decades...
George A. from Weatherford, Oklahoma
told us recently that
he's held shares of General Electric for 45 years. During that time,
his holdings have turned from
$27,000 to $108,000...
while also paying him "tons" of dividends.
Arthur R. of Sandy Springs, Georgia
told us he invested in 200 shares of Automatic Data Processing at
just $8.00 per share. After holding about five years, he sold at
$59.90. His profit? Through splits, his original $1,600 investment
turned into $106,000 when Arthur sold.
Tony R. of Reading, Massachusetts
bought $2,000 of Esso -- Exxon's predecessor -- more than 50 years
ago. "I never purchased any more, I just reinvested dividends. For
years it was the only stock I owned."
Tony says that stake topped out at more
than $100,000.
Now, I'm not here to tell you about General Electric or Exxon.
They've done well by long-term investors, but I don't want to hold
them forever now. However, these stocks prove just how big a
difference "Forever" stocks can make to your overall wealth.
Meanwhile, I've found a new breed of stocks
I think are "Forever" candidates.
My name is Paul Tracy. I'm the co-founder of StreetAuthority, one of the
country's fastest-growing financial research firms.
I started StreetAuthority
more than a decade ago.
My business partner and I literally started the business from our kitchen tables. It's funny to
think about now, but I can tell you back then we tried to keep our
humble start a secret.
But
then a funny thing happened...
People began to see StreetAuthority knew what we were talking about. We
were making investors money.
Gradually more investors learned about us. Then our analysis started to
appear on AOL, Forbes, Nasdaq, and Yahoo Finance. That
brought more readers. |
 |
Over the years, our business has grown like a weed. We now have two
offices -- one in Gaithersburg, Maryland and another in
Austin, Texas. We employ dozens of people, and we have analysts and researchers from all over the
U.S. and Canada.
Today, we publish our research to over 2 million readers in 175 countries.
But I think the research we've done on our "10 Best Stocks to Hold Forever"
might be our best to date...
I'll get into more details on our 10 "Forever" stocks -- including
some specific names and ticker symbols -- later on in today's report.
But first, I think it's my duty as a fellow investor to tell you why
holding a stock forever may be the smartest investing decision you'll
ever make...
The Profitable Advice You Won't Get
From Your Broker
I want to tell you a little secret about your
brokerage firm. They are in business to make money.
Big shock, I know.
But that means your broker would never suggest holding a stock forever.
The more you trade in and out of stocks, the fatter their profits get.
I personally use E*Trade for my buys and sells. They are always trying
to sell me on using their latest and greatest trading tools. They'd
rarely (if ever) recommend that I buy a
stock and simply hold it... letting the shares pay me year after year.
They want commissions.
I don't mean to single out E*Trade. Scottrade, TDAmeritrade, nearly every
brokerage house... they all push for you buy and sell frequently.
Now, I'm not knocking trading. I've seen plenty of people make money
doing it. But it's not for me. And if you're reading this research, I bet it's not for you either. Here's the good news...
You don't have to trade every day... or every week... or even every
year to beat the market. In fact, your success actually increases
the fewer trades you make and the longer you hold.
A recent study by mega-investment firm Oppenheimer showed that the S&P
500 has NEVER suffered a loss in a 20-year period (measured in
rolling monthly periods). Their study went all the way back to 1950.
Of
course, we all know you can't say the same for holding stocks for a year
or two. When you hold stocks for a short period of time, your odds of
losing money are much, much higher.
And you can lose a boatload of money in a hurry...
In fact, in its worst 1-year period, the S&P 500 dropped -44.8%.
No wonder Warren Buffett has always said his favorite holding period is
"forever."
Let me be clear...
I believe the simplest way to turn any amount of money into a
windfall is to find a stock you want to hold forever, invest, and then
forget about it.
But it's not just me.
Listen to the story of Grace Groner.
Grace lived nearly her entire life in Lake Forest, Illinois, about 45
minutes north of Chicago. After she graduated from Lake Forest College
in 1931, Grace was hired as a secretary at Abbott Laboratories, where she worked for more than four decades.
Grace never earned an amazing salary as a secretary. She never drove a
fancy car. According to the Los Angeles Times, she got her
clothes from garage sales. She lived in a one-bedroom house that was
willed to her when a friend passed.
But in 1935, a few years after she started her job at Abbott Labs, she
bought three shares of the company's stock for about $60 per share.
Her total investment was under $200.
As I bet you can guess, Grace never sold those shares. Through
dividends, share splits, and dividend reinvestment, when she died in
2010, her three share purchase was worth $7 million. She left it
all to her alma mater.
Anne Scheiber did almost the exact same thing. She started with $5,000
in 1944, buying shares of market leaders like Schering-Plough, Coca-Cola, and Bristol-Myers. According to those close to
her, Anne hated to sell because she couldn't stand paying commissions.
When she died in 1996, her $5,000 initial investment had turned into
$22 million.
Now, I don't expect you to turn $5,000 into $22 million. These are
special cases. But what you may not realize is that right now, everyday
investors like
you are buying into "Forever" stocks, holding for the long-term, and
making small fortunes of their own...
Robert R. of The Villages, Florida said he bought 1,000
shares of Exxon in 1973... When we last talked to him, he owned 16,000 shares.
His favorite thing about investing in "Forever" stocks? "You don't have
to worry about constantly trying to beat the market," said
Robert.
George A. from Seattle, Washington
had a similar story. George said he bought $2,000 of Apple and
$2,000 of Amazon back in October 2000. About 10 years later,
he told us his Apple shares were worth $60,100 and the Amazon shares were worth $11,600.
William M. is an investor in Boynton
Beach, Florida who said he's held over 60 stocks for more than 35
years. He bought just 5 shares of AT&T in 1950.
When we last heard from him, he said thanks to splits, spin-offs, and dividends, he owned 4,000-plus
shares of the stock!
He also told us he's been retired 27
years, is a member of two private country clubs, and has homes in
both Florida and Massachusetts.
But my favorite
story is from Edwin C. of San Diego. I'll let him tell you
himself...
"I started out investing on a monthly basis in
Exxon and Duke Energy, and then in the Oakmark Equity and Income Fund. I
never sold any positions. Ten years later I have $109,000 in Oakmark and $50,000 each in Exxon and Duke. When I get my annual pay
raise, I increase my automatic monthly investment by 50% of the
raise. Pay yourself first! I am a multimillionaire with no
college education, just a 20-year Navy career behind me."
But why? How is it that holding a stock "Forever" seems time and time
again to make the biggest difference in your overall success?
My research staff uncovered two big reasons...
"Forever" Reason #1:
The Best Way I've
Found to
Earn 4-Digit Gains
If you want to see the best reason why investing
"Forever" is the smartest way to let the market make you wealthy, pay
attention to the table below...

I ran a
simple stock screen on my research team's Bloomberg terminal. I asked this piece of research
software to show me all the stocks in the United States that have
returned more than 250% in the past year. And to weed
out the fly-by-night penny stocks, I had it return only stocks with a
market cap above $250 million that traded on a major exchange.
You can see the results for yourself.
It's just
4 stocks. That's the
definition of trying to find a needle in a haystack.
In fact, I bet you've never even heard of any of these stocks... much
less own any of them.
But then I ran the exact same screen... only I changed the time period
to the past 10 years. The results are night and day.
Over the last 10 years, 415 stocks returned more than
250%.
More than 100 times as many as the past year!
That's because the market's greatest stocks -- not the extremely
risky plays that skyrocket and crash seemingly overnight -- take
years to reach their full potential.
They won't do it in one year... or even two or three years. But in the
meantime, investors who hold these stocks are able to steadily compound
their gains year in and year out.
Take a well-known case -- shares of Apple (Nasdaq: AAPL). Apple has been
one of the market's best performers for years. But even in the stock's
best one-year period, investors made 289%.
I
wouldn't sneeze at a 289% gain, but anyone who bought for a year... or
an even shorter time... sold themselves short.
You can see from my chart
that Apple wasn't done after six months or a year...
Since 2003, Apple has gained 7,507%. That's an average annual gain of
59% and enough to turn every $100 invested into more than $7,600.
Investing for a short period in a stock like Apple is like ordering a
7-course meal and only sticking around for the appetizer. Sure you get a
taste... but wouldn't you rather have the whole meal?
And today, I'm seeing a similar setup to what has happened with
Apple...
This "Forever" stock is
the one owned by Fidelity, Goldman Sachs, and more than two dozen
Congressmen. Like Apple, this stock has long been a darling of Wall
Street. Since it first went public in 2004, it's returned 459%.
But then something happened... investors turned against the company
-- knocking it down just like they did Apple in 2008 and 2009. And while
the shares have rebounded... they still aren't anywhere near where they
could -- or should -- be trading at.
This company makes a product you probably use every day. Heck, in my
line of work, I use it dozens of times a day.
It owns a dominant 65% of its primary market... and literally billions
of people rely on this company.
That sort of dominance has done wonders for business, although you
wouldn't know it by looking at the stock, which I think is extremely
undervalued right now.
With profits of nearly $10 billion in 2011, this company is
ranked #18 on the latest Fortune 500 list based on profits.
That means only 17 companies in the United States earn more profit per year than
this "Forever" stock.
Put simply, this business is a cash machine.
Maybe that's how it has built up more than $47 billion in cash on its
books... which equals a staggering $146 per share -- or 23% of its
share price. I've never seen anything like it.
But despite these statistics, you can buy the shares for less than they
traded at before the recession, despite that profits have increased 157% since
then. If that screams buying opportunity to you...
you're not alone. I agree with
you.
I'll give you the name of this company a little later. But first, I want
to show you one more reason why owning a stock forever may be the smartest
investment move you've ever made...
"Forever" Reason #2:
The Simplest Way to
Invest... That Also Means LESS Risk
Owning stocks forever reduces your risk of a loss.
It won't guarantee you'll make money -- nothing short of a savings
account will. But the longer you hold, the more likely you are to earn a
profit.
I'm not blowing smoke here. Decades of data back it up.
In fact, when I started preparing this research report, the first thing
I did was go through the annual results of
the S&P 500, going all the way back to 1950. That's 60-plus years worth of
data.
You
can see what I found in my chart...
On a rolling annual basis, the S&P 500 has dropped 16 times over a
1-year period since 1950... but zero times in any 20-year period.
This trend is clear as day. The longer you hold an investment, the
better your chances of making money. And there's no longer
holding period than forever.
But I'd bet you already knew holding for the long-term is smart. Many of
the market's brightest minds -- including Warren Buffett -- have
heralded the powers of long-term investing.
The simple fact is it can be tough to hold for long periods. After all,
there are bear markets, recessions, flash crashes... it can be enough to
make your head spin.
Even if you want to hold for the long term, don't you have to
have nerves of steel?
The answer is no. Absolutely not. IF you're invested in
the right stocks, you can beat the market with less volatility than you
ever thought.
Hear me out...
The recent bear market lasted from October 9, 2007 until March 9, 2009.
During that time, the S&P 500 dropped from a peak of 1,565 to a low
of 676. That's a nauseating -56.8% drop.
But you couldn't avoid that drop, right? After all, the S&P 500 dropped
that much... and it's an average of 500 of America's best companies.
Everyone lost -56%... or did they?
I've run the numbers on our 10 "Forever" stocks during that nasty bear
market.
Only 1 stock of the 10 fell more than the S&P 500 during the bear market.
And when the bull market returned, that stock came back with a
vengeance... more than doubling the S&P 500 in the following
year.
As for the other 9 picks? Well one of them wasn't listed until after the
bear market, so I left it out of our calculations to be fair. Of the
rest, they fell an average of 30% less than the broader market.
And the vast majority of these picks beat the S&P 500 on the way back
up. So not only has this select group of stocks held up better in down
markets... they've also whipped the S&P 500 in bull markets.
See for yourself...

It's like having your cake and eating it too.
Now, I'll be honest. There's a major caveat. You can't just buy any
stock, hold it forever, and expect to come out ahead. The market is
littered with Enrons, Worldcoms, even General Motors. Holding forever
didn't matter a lick with them.
That's why my staff and I have put so much time, effort, and money into
completing our list of 10 "Forever" stocks.
The performance of these stocks since the start of the bear market isn't
some fluke.
It's one of the main reasons why I selected these 10 stocks in the first place.
But the best news is this handful of stocks show unbelievable signs
they could make investors wealthy for years to come.
But what's most important right now is not what
these stocks have done in the past, but what they could do for you in
the years ahead.
When you
invest in companies like the dominant monopoly with a 5.0% dividend
yield that I'll tell you about in a moment, you can sleep well at night
knowing that your money has a great chance of growing year-in and
year-out for decades to come.
If you want to read all our research on this select group of "forever"
stocks, I've put everything together in a brand-new research report
titled The 10 Best Stocks to Hold Forever.
Even better, I want to give you unrestricted access to this report right
now. Keep reading to learn how to claim your copy...
Just Released: The 10 Best Stocks to Hold
Forever
As I mentioned earlier, I co-founded
StreetAuthority more than a decade ago.
Today, I pay salaries of several million dollars per year to employ some
of the smartest investment minds in the country. But before that, I made
every investment decision in the company myself.
Here are a few of my past recommendations within Market Advisor,
StreetAuthority's first investment publication:
|
Paul Tracy's Picks |
Total Return |
| China iShares (FXI) |
+274.7% |
| MasterCard (MA) |
+161.7% |
| Silver Wheaton (SLW) |
+106.4% |
| CarMax (KMX) |
+94.2% |
| Emerging Mkts (EEM) |
+116.7% |
| Latin America iShares (ILF) |
+69.6% |
| Skyworks Solutions (SWKS) |
+90.0% |
| MV Gold Miners (GDX) |
+125.3% |
| PowerShares Golden Dragon (PGJ) |
+96.2% |
| First Amer (FAF) |
+58.7% |
| Singapore iShares (EWS) |
+75.1% |
In other words, I know what makes a good investment... and what makes a
bad investment.
But over the past few years -- especially during the teeth of the
recession -- I noticed something disturbing.
Thousands... even millions of investors starting dumping what I knew
were good investments that should be held for the long term.
Take a look at a few of my personal buys during the
market low of March 2009. If you remember, the stock market was in
complete chaos at the time.
In fact, the S&P 500 hit bottom on March 9, 2009. Many investors sat in
shock -- numb, as they watched their portfolios deteriorate with the
drop in the overall market.
Some of my colleagues in the industry even vowed to never invest again.
But I saw something completely different. I saw a historic buying
opportunity. I didn't wait.
I backed up the truck, putting more than $40,000 into some of the
market's most undervalued stocks. I admit I didn't buy at the exact
bottom on March 9th, but I came within days. Over the next 12 months,
stocks would rebound over 60%, sending my shares soaring.

As the co-founder of an investment research firm, it bothered me
investors were dumping what I saw as unbelievable opportunities. And
even worse, investors were selling some of the most dominant companies
on the planet -- the exact type of stocks I like to buy and hold
forever.
Ever since, I've been throwing around this idea in my head of creating a
list of stocks that investors could hold forever. They could simply buy
the shares and forget about them.
They wouldn't have to worry about what the market is doing... or
interest rates... or GDP... or inflation.
Basically, I wanted to show investors that investing doesn't have to be
complicated. And you don't have to watch the stock market every day to make
money.
All you have to do is find a handful of companies that enjoy huge (and
lasting) advantages over the competition... companies that pay their
investors each and every year by dishing out fat dividends... and
companies buying back massive amounts of their own stock.
These are the kinds of companies that can make you money almost no matter what.
Once you find them, the rest is simple -- just buy their shares and hold
forever.
So I put our team to work on building a list of these "forever" stocks.
The result is the report I'd like to share with you... The 10 Best Stocks to Hold Forever.
To claim your copy, with full details and profiles of all 10 stocks, I
only ask that you try a trial subscription to my monthly advisory -- Top 10
Stocks.
But before you decide, let me tell you a a bit more about this
select group of companies...
"Forever Stock #1:
The "Rockefeller"
Stock
I Want to Buy and Hold Forever
He is the
richest person in the history.
Warren Buffett? At his peak, Buffett's wealth is less than one-fifth
this man's fortune.
Bill Gates doesn't even come close. Neither does Walmart founder Sam
Walton or telecom magnate -- and current richest man in the world --
Carlos Slim.
None
of these men can hold a candle to the $336 billion fortune (adjusted for
inflation) amassed by a name synonymous with wealth... John D.
Rockefeller.
But when I tell you I've found what I call my "Rockefeller" investment,
I'm not saying it because I think it will make us billionaires -- even
though I'd love to be able to say that.
No, I call it my "Rockefeller" investment because of what
this company
invests in.
This "Forever" stock owns a rare breed of assets that are nearly
impossible for small investors like you and me to purchase directly.
Typically only major companies... or industrial titans like
Rockefeller... can buy them.
Most people know Rockefeller
became rich via his company, Standard Oil. And while I want to invest in
the same sort of business that he did, my "Rockefeller" pick has nothing
to do with oil.
But that's fine by me, because when you look closely at exactly WHY
Rockefeller got rich, you realize Standard Oil didn't turn Rockefeller
into a billionaire simply because it was in the oil business.
No. Standard Oil made Rockefeller the richest man in history because the
company held a monopoly in its market... while also paying a fat
dividend on the shares he held.
And now, I've found an investment -- Brookfield Infrastructure (NYSE:
BIP) -- that lets you own stakes in dozens of infrastructure
monopolies across the entire world, and in addition to capital gains, it pays investors
a 5.0% dividend each
year to own it.
In total, roughly 80% of the partnership's revenues are under contracts or are
regulated. Meanwhile, those practically guaranteed revenues are
coming from one of the most compelling portfolios I've ever seen.
The partnership has a stake in electric grids in Chile. It holds
railroads in Australia... ports all over Europe... coal facilities in
Australia... toll roads in South America... and timberland in the United
States and Canada.
I can only think of one, maybe two, other places where you can invest in
a stable group of monopolistic holdings this broad from all over the planet.
But any "Rockefeller" idea would be incomplete if it ignored dividends.
After all, it was Rockefeller who once quipped "Do you know the only thing
that gives me pleasure? It's to see my dividends coming in."
Right now BIP pays $0.375 per unit each quarter. That's a 36% increase
over 2010 and gives the units a yield of 5.0%.
But I think that distribution is going to rise in the years ahead. Brookfield
explicitly state its aim is to raise its distributions 3-7% a year,
while also aiming to return 60-70% of its income to investors in the
form of dividends.
How many other investments tell you that it's their explicit goal to
continue increasing distributions... and at a rate that outpaces
inflation?
That's just a sneak peek into the finds I cover in The 10 Best Stocks
to Hold Forever.
But it's certainly not all...
"Forever Stock #2:
The "Market Darling"
With $146 Per
Share of Cash
I told you a few of the details about this stock
earlier in today's report.
It's the one owned by Goldman Sachs.
They own about $1.4 billion
of the stock.
More than 20 U.S. Congressmen also own
shares.
I'm talking about Google (Nasdaq: GOOG) -- one of the
most dominant companies on the planet -- and one that I want to own
forever... especially at these prices.
And guess what... this stock is also praised by Charlie Munger --
Warren Buffett's second in command.
"Google has a huge new moat," Munger said. "In fact I've probably never
seen such a wide moat. Their moat is filled with sharks."
Munger is famous for loving companies with wide "economic moats" --
advantages that keep competitors from gaining territory against a
business.
And Google has plenty of those...
It's the most dominant company on the entire Internet. Depending on who
you cite, it owns no less than a 65% market share of online search, and
possibly upwards of 90%.
Moreover, it offers email... online documents... mapping tools... and
dozens of other free utilities -- all in an effort to get its
advertising platform in front of more eyeballs.
Its web advertising platform controls nearly 40% of the market
(and growing)... about triple its nearest rival. And online advertising
is still in its infancy. It's expected to jump 23% this year.
That's helped the company build up a stockpile of more than
more than $47 billion in cash on its books... or $146 PER SHARE.
That means Google could afford to pay every investor a dividend of
nearly
$150 per share and still not skip a beat.
Despite these statistics, you can buy the shares for less than they
traded at before the recession. That's despite the fact that earnings
per share have increased roughly 150% since then.
Sometimes the market just doesn't make sense. But I think the solution
is pretty simple. Buy the shares now... and hold them forever.
In fact, I think that's the right plan for the rest of my 10 "Forever"
stocks...
|
"Forever" Stock #3 is one of the most dominant companies
I've ever researched. This company sells its product in 180
countries and owns 7 of the world's top 15 global brands in its market.
But it's also the most shareholder-friendly company I've ever
seen. It's raised the dividend 67.4% since 2008... and has repurchased
more than 432 million shares (about
20% of all shares
outstanding). That's one reason why earnings per share jumped
20% in 2011.
Buy it now and you'll lock in a solid yield of 4%, and I expect
another dividend increase in the next few quarters. Meanwhile,
the company plans billions more in share repurchases, which should support the share price in just about any
market.
"Forever Stock" #4 is a fund whose job is simple --
invest in the most stable utility stocks on the earth and pay
investors a fat dividend yield.
It owns telecoms in Israel, electric companies in
Brazil, and water utilities in the United States.
It's returned more than 11% per year since its inception in
2004... and it has boosted its dividend 28.9% along the way. In
total, the fund has paid more than 90 consecutive dividends and currently
yields 6.0%.
But don't expect to have heard of this one... it trades only
60,000 shares a day -- about what Apple trades in two
minutes.
"Forever Stock" #5 is a special "toll" company with more
than 975 million users around the world... and more than $3 trillion in transactions
per year.
Although the company was founded in 1966, investors couldn't buy
a stake until a few years ago.
Since it's gone public,
the stock is up 857% thanks to its seemingly unstoppable growth. Maybe that's
what attracted the world's greatest investor -- Warren
Buffett --
and his investment team.
His giant investment firm, Berkshire Hathaway (NYSE: BRK-B),
bought a 216,000 share stake in this "Forever" stock just
over a year ago. And then
Berkshire "doubled down" -- buying 189,000
more shares the next quarter.
Now this company is making a big splash in China... and is in
the process of buying
back $1 billion in stock. That makes it a no-brainer for
my "Forever" list.
Forever Stock #6 isn't just on our radar. Forbes.com
called it one of "3 Good Buys in Master-Limited Partnerships
(MLPs)."
This gem of a fund just started trading in 2009, but it's
turning heads. It's already returned 135%. That's not much of a
surprise. The index it tracks delivered a 10-year annualized
return of 16.0%!
It does so well because it holds dozens of energy partnerships
that have to pay out the bulk of their cash flow to investors.
Best of all, most of these businesses pay zero corporate tax.
"Forever" Stock #7 is a fund that holds more than 280
of the fastest-growing companies in the world. But you won't
find these companies here in the United States.
That because this fund only invests in faster-growing
emerging markets like Taiwan, Brazil, and Malaysia. At first
glance you might think that's risky... until you think about
where our economy is in the United States.
Here at home we're struggling to see 2% economic growth... and that's
with massive deficit spending. But Malaysia's GDP grew at a 5%
rate in 2011... Taiwan grew 4%... and Chile grew 6%. Economies
like Taiwan, Brazil, Chile and others are simply growing
faster than the U.S. economy. This "Forever" idea is
one of the best ways to profit from that trend.
Every $200 you invested in "Forever" Stock #8 back in 1972
would be worth $406,000 today. Maybe that's why it's one of
Congress' favorite "sweetheart" stocks. In total, more than
50 members of Congress own a stake.
Former Presidential Candidate John Kerry and his wife own at
least $602,000 worth, according to Congressional watchdog the
Center for Responsive Politics.
But he isn't alone. All the big banks own a piece of this
company... just like Congress. Morgan Stanley owns 31 million
shares. JPMorgan Chase owns 32 million. Bank of America owns 37
million shares. And Goldman Sachs owns over 13 million shares of
this stock.
Meanwhile, the company is raising its dividends, spending
billions to buy back its own shares, making smart acquisitions,
and according to investment research firm Morningstar, owns an
"80% stranglehold on a $30 billion market..."
I like to call
"Forever" Stock #9
"Baby Berkshire." It
invests just like Warren Buffett's Berkshire Hathaway, but there
is one major difference...
This company is still small enough to make nearly any investment
it wants, which can lead to big returns. Warren Buffett himself
said of his company, " Berkshire's capital base is now simply
too large to allow us to earn truly outsized returns."
One more thing to like... Morningstar says, "We hold the manager
of [this company] in high regard and award them our highest
Stewardship Grade."
I looked all the way to Brazil for "Forever" Stock #10,
but don't worry... it trades right on the New York Stock Exchange.
It's the largest electricity transmission and distribution
company in Brazil, boasting more than 7.0 million customers.
Like many utilities, its profitability is also supported by its
monopolistic position. Roughly three-quarters of its total power
sales are to captive customers who do not have the option of
switching to another electric distributor.
Meanwhile, the company makes semi-annual dividend
payments, with a policy of distributing at least 50% of net
income. The two most
recent dividends add up to $1.66 per share, giving the stock a
yield of 6.5%. |
It's Time For YOU to Start
Making
Money With These 10 "Forever" Ideas
I have a passion for the markets. It's one of the
reasons I got into this business more than a decade ago. I bought my first
stock when I was still in high school -- while most of my buddies were
sneaking beers.
Over the years, I've bought and sold literally millions of dollars worth
of stocks, but I wish I had realized this sooner -- it's the few
investments you simply buy and hold forever that make the biggest
difference to your long-term wealth.
That's why I put together The 10 Best Stocks to Hold Forever
for the readers of my Top 10 Stocks advisory.
This newsletter offers one of the simplest guides to the market. Each
month I share just my single favorite pick from across all of
StreetAuthority's research advisories.
So far, the readers following my work seem to have enjoyed it...
"The investment suggestions are thoroughly researched. The background
information shared and rational for inclusion in a portfolio is concise
but informative."
-- Marilyn W., Green Valley, Arizona
"I like the concentrated portfolio and not being inundated with too many
"great" ideas, just the ONE best per month and the overall 10 best to be
kept in a portfolio."
-- Haviva G., Atlanta, Georgia
"The cream of the crop all in one! What's not to like?"
-- Tony P., Toronto, Ontario
"Don't change anything, you may break it. I think you are the best."
-- Bahij M., Newton, Pennsylvania
Now, there's no guarantee Top 10 Stocks will be the right
publication for you. So here's what I'd like to do.
Try Top 10 Stocks for the next 60 days, read
The 10 Best Stocks to Hold Forever, which is included for free with
your subscription, and then decide then if my research is what you're looking
for.
Start your 60 days now, and you'll receive:
Report #1: The 10 Best Stocks to Hold Forever - You'll have full
access to the names and profiles of the 10 stocks my research team and I
have designated with
the exclusive "Forever" tag. Buy these stocks... and forget about them.
Report #2: Two Stocks with 10%-Plus Dividend Yields --
If your idea of investing heaven is a double-digit yield, then you'll
love this report. The yields here start at 10.0% and go up from there.
And
once a month you'll also receive my latest issue of Top 10 Stocks,
featuring an in-depth profile of my top pick of the month -- the
single most promising profit play from across all of StreetAuthority's
premium investment advisories.
Keep in mind that I actually purchase every one of my monthly ideas
in my Top 10 Stocks' $100,000 real-money portfolio.
So for the next 60 days, you can take the time you need to decide if my
Top 10 Stocks research is what you're looking for.
If not,
simply contact our customer service team for a 100% refund.
Like I said, it's easy to see if my research is right for you.
I'll tell you how to get started and gain immediate access to The
10 Best Stocks to Hold Forever in a moment... but first I want to tell you
about one more bit of research I've been working on.
Congress' Dirty Secret You Can Use to Your
Advantage
I've talked a lot about the Congressmen who own
some of our 10 "Forever" stocks... but
you're still probably wondering... "Does it really matter if Congress
owns shares or not?
Well, the truth will make you sick. Technically it's public knowledge,
but I can tell you -- it's Congress' dirty little secret.
Congress is rich. Unbelievably rich. And until just recently, insider
trading laws didn't apply to Congress.
I don't know which is worse: The fact that insider trading was legal for
some of our nation's wealthiest politicians... or that Congress refused
to do anything about it for decades.
"A few lawmakers proposed a bill that would prevent members and
employees of Congress from trading securities based on nonpublic
information they obtain. The legislation has languished since 2006,"
according to The Wall Street Journal.
That was, the legislation languished until 60 Minutes -- one of the most-respected
investigative journalism programs on television -- dedicated a segment
to the issue. Here's a portion of what they had to say...
|
"In mid September 2008, with
the Dow Jones Industrial Average still above 10,000, Treasury
Secretary Hank Paulson and Federal Reserve Chairman Ben Bernanke
were holding closed-door briefings with congressional leaders,
and privately warning them that a global financial meltdown
could occur within a few days. One of those attending was
Alabama Representative Spencer Bachus, then the ranking
Republican member on the House Financial Services Committee and
now its chairman.
"While Congressman Bachus was publicly trying to keep the
economy from cratering, he was privately betting that it would,
buying option funds that would go up in value if the market went
down. He would make a variety of trades and profited at a time
when most Americans were losing their shirts." |
And that was just one example. Also dug up by 60
Minutes:
Nancy Pelosi (D-CA) and her husband have participated in multiple
exclusive IPOs -- including that of Visa (NYSE: V). According to one
report, Pelosi purchased 5,000 shares of Visa at the IPO price of $44.
Just a couple of days later, when the stock was trading to the investing
public, it traded at $64 per share.
John Boehner (R-OH) bought stocks of healthcare
companies days before the public option was pulled from pending
healthcare legislation.
The removal of the public option proved to be a boon for private health
insurers, making a significant sum for the Congressman's investments.
The report from 60 Minutes led to
a frenzy. And a few months after the story aired, the STOCK Act, which
curbed insider trading by Congress, was signed into law.
But why was it delayed for so long?
Apparently Congress was making too much
money off the lax rules to do anything about it.
According to data from the Center for Responsive Politics, 249 of the
535 members of Congress are millionaires. That's 47%! For comparison, about 5% of American households are worth more than $1
million.
So
much for representation "by the people." And why on earth would Congress
change rules that have obviously helped them for decades?
But back in the '60s there was at least a sliver of hope. Think of it as
a milkbone Congress threw out to keep the dogs off their scent.
You see, back then Robert Baker, a senior Senate aide, was roiled in a
scandal involving financial gain from a network of vending machines.
He ended up spending 16 months in prison, convicted of income tax
evasion.
This led to a series of rules in 1968 that required lawmakers and aides
to disclose information about their finances.
The rules require all members of Congress (along with some of their
higher-paid aides)
to publicly disclose information on their finances every year -- including stock
holdings.
Thankfully, the STOCK Act strengthened this requirement. Not only did it
eliminate insider trading, but Congress must now disclose their trades
within 45 days after they happen.
That means we have an opportunity to see exactly what our
"representatives" are buying. And we need to know...
Because according to Barron's, the "Holy Grail of investing has
been found: get elected to U.S. Congress."
In a study cited by Barron's, members of the House of
Representatives beat investors like you and me by 55 basis points a
month. That comes out to an extra 6.8% per year. I think
Barron's said it best...
|
"To give an
indication of what House members' outperformance is worth,
investing at the stock market's long-term total return of 10%
would mean $10,000 would grow to $25,937 in 10 years. But with
their special investment acumen, their 16.8% annual returns
would leave them with $47,253 in 10 years." |
Is it any wonder that the first place I went
looking for my 10 "Forever" stocks was in Congress' own portfolios?
But I wanted to give investors more, so I put my findings in a special
research report: Congress' Dirty Secret: The Most Popular Stocks
Owned by Your Representatives.
In this report, I profile the six most popular stocks owned by
Congress... and even show you how simple it is to dig up the details on
what any
Congressman holds.
I've decided to include this report at no extra charge with your
subscription to my monthly Top 10 Stocks advisory.
For just $99, you'll receive one year of my monthly advisory. This
includes...
12 Issues of Top 10 Stocks -- Each issue includes an in-depth
profile of my top pick of the month -- the single most promising profit
play from across all of StreetAuthority's premium investment
advisories.
Instant Access to my Entire $100,000 Real-Money Portfolio --
To track our true results I actually buy and sell my picks in a real
brokerage account. And I also give you 48 hours advance notice before I
buy or sell any security -- giving you time to beat me to the punch.
Report #1: The 10 Best Stocks to Hold Forever -- You'll have
full access to the names and profiles of the 10 stocks we've designated
with the exclusive "Forever" tag. Buy these stocks, forget about them,
and never sell them.
Report #2: Two Stocks with 10%-Plus Dividend Yields - -If your
idea of investing heaven is a double-digit yield, then you'll love this
report. The yields here start at 10.5% and go up from there.
Report #3: Congress' Dirty Secret: The Most Popular Stocks Owned by
Your Representatives -- You'll receive full profiles of the top
six stocks that Congress has quietly been quietly buying for years...
and learn how to look up what your representative owns.
If you decide to join Top 10
Stocks for two years (with the same 60-day
money-back guarantee), then you'll also receive these additional
reports...
Report #4: The Most Undervalued Stocks in America --
These two stocks are major market players... but they are some of the
most undervalued investments I've seen. Meanwhile, these companies are
buying back billions of their own stock and increasing dividends like
crazy -- doing everything they can to make their investors rich.
Report #5: Two Stocks with 500% Growth Potential --
These stocks are for those investors looking to "move the needle" on
their portfolio. We've identified the two picks that we think have the
most potential to soar several hundred percent in the months and years
ahead.
Keep in mind that you'll have the next 60 days to decide if you like my
research or not.
If you don't like it, I won't get my feelings hurt. Simply call our
dedicated customer service team before 60
days is up and we'll issue you a refund. You'll be able to
keep the reports, free of charge.
To get instant access,
subscribe
now.

All the best,


Paul Tracy
Editor, StreetAuthority's Top 10 Stocks
Co-Founder, StreetAuthority
P.S. -- In the interest of full disclosure, please know I'm
putting my money where my mouth is. I currently hold most
of the 10 "Forever" stocks for my personal portfolio...
including BIP... and I could be adding one or two more in the
weeks ahead.
P.P.S -- The only way to get the names of my 10 "Forever"
stocks, my favorite Top 10 Stocks from across all of
StreetAuthority's advisories, and Congress' Dirty Secret
is to subscribe today.


DISCLOSURE:
Paul Tracy owns shares of BIP and GOOG. StreetAuthority owns shares of
BIP and GOOG as part of the company's various $100,000
"real money" portfolios. In accordance with
company policies, StreetAuthority always provides readers with
at least 48 hours advance notice before buying or selling any
securities in any "real money" model portfolio.
DISCLAIMER: StreetAuthority,
LLC is a publisher of financial news and opinions and NOT a
securities broker/dealer or an investment advisor. You are
responsible for your own investment decisions. All information
contained in our newsletters or on our web site(s) should be
independently verified with the companies mentioned, and readers
should always conduct their own research and due diligence and
consider obtaining professional advice before making any
investment decision. As a condition to accessing StreetAuthority
materials and websites, you agree to our Terms and Conditions of
Use, available
here, including without limitation all disclaimers of
warranties and limitations on liability contained therein.
Owners, employees and writers may hold positions in the
securities that are discussed in our newsletters or on our
website.
Figures shown in the preceding webcast represent returns for individual stocks
only. All investments can be volatile, and all returns will be
reduced by fees and expenses. Below are the returns for
StreetAuthority's premium newsletters.
Newsletters
(Real-Money Portfolios) |
2011 Returns |
Current Holdings Showing
Gains* |
Current Holdings Showing
Losses* |
|
Top 10 Stocks |
8.0% |
10 |
2 |
*as of April 30, 2012