13 Best Stocks To Buy and Hold Forever
The stock market landscape is constantly evolving, with new trends and predictions shaping the future of investments. Recently, the equity strategy team at UBS shared some bold forecasts for potential surprises that could unfold in 2024. These predictions, while not reflective of the bank’s base-case scenario, offer an intriguing glimpse into what the future might hold.
One of the standout surprises highlighted by UBS involves the possibility of China’s nominal GDP experiencing a slowdown to 3%, contrary to expectations of acceleration. Additionally, the forecast includes a potential steepening of the yield curve to 2%, challenging current market expectations. Moreover, the UBS team envisions a scenario where a candidate other than Joe Biden or Donald Trump emerges as the victor in the November election, adding an element of unpredictability to the political landscape.
Among the bold predictions outlined in UBS’s report, a particularly interesting insight is the transformative impact of generative artificial intelligence tools on productivity. The strategists suggest that these tools are already making a substantial impact and expect that the existing infrastructure could facilitate a 2.5% increase in productivity growth. Drawing parallels to the IT revolution in the late 1990s, such an uptick in productivity could potentially ignite a significant rally for equities. The UBS team forecasts that instead of productivity staying around 1.5%, it could increase to 2.5%, leading to lower inflation and a slow decrease in unemployment.
The United States economy is currently experiencing what some experts are categorizing as a “Goldilocks” moment. Economists from the National Association for Business Economics (NABE) anticipate faster growth, reduced inflation, and robust job creation in 2024. This positive outlook stands in stark contrast to the recession fears that prevailed in 2023. The NABE now predicts a 2.2% rise in gross domestic product (GDP) for 2024, a more optimistic forecast compared to just two months ago.
In this favorable economic environment, some of the best stocks to buy and hold forever include Microsoft Corporation (NASDAQ:MSFT), Amazon.com, Inc. (NASDAQ:AMZN), and NVIDIA Corporation (NASDAQ:NVDA). These companies have shown resilience and growth potential, making them attractive long-term investment options.
To identify the best stocks to buy and hold forever, we referred to long-term hedge funds that rarely buy and sell stocks. We found 13 stocks that these funds have held consistently for at least 10 years. These hedge funds include Warren Buffett’s Berkshire Hathaway, Nelson Peltz’s Trian Partners, and Cliff Asness’ AQR Capital Management. Hedge funds’ top 10 consensus stock picks have outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years.
Among the 13 best stocks to buy and hold forever, some notable mentions include The Wendy’s Company (NASDAQ:WEN), Moody’s Corporation (NYSE:MCO), The Coca-Cola Company (NYSE:KO), American Express Company (NYSE:AXP), Merck & Co., Inc. (NYSE:MRK), Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), Advanced Micro Devices, Inc. (NASDAQ:AMD), and Apple Inc. (NASDAQ:AAPL). These companies have strong fundamentals and growth potential, making them attractive options for long-term investors.
In conclusion, the stock market landscape is filled with opportunities for investors looking to build a solid portfolio for the future. By considering the insights and predictions from experts like UBS and NABE, as well as the track record of long-term hedge funds, investors can make informed decisions about the best stocks to buy and hold forever.
