“I donned my thinking cap and challenged my inner stockpicker to come up with a handful of stocks that I would feel comfortable holding for the next 20 years. You should try it sometime. It forces you to think about which companies you think will still be around in a few decades, as well as their prospects for growth,” Rick Aristotle Munarriz writes for The Motley Fool. “I settled on four stocks. It wasn’t easy. I just put myself in a position that would make Rip Van Winkle’s slumber seem like a mere catnap. If in a blink, 20 years should lap me by, which four companies would I like to own?”
Munarriz picks Wal-Mart, Google, Disney, and Apple Computer. Munarriz writes, “I have no idea whether the iPod will still be around in 20 years. It may have made Apple trendy again in investing circles, but this pick has nothing to do with the company’s recent success in digital music. In fact, I feel better about Apple’s stock performance in the long-run than in the near-term. That’s because Apple is a survivor. Even as its personal computer business lost market share, the company found a way to matter as a niche player. Even though its computer business is booming again thanks to iPod users migrating back to the Mac platform, that’s certainly not the best reason to place Apple shares under your pillow. Simply put, the company oozes innovation. Personal computers and MP3 players are commodities for the most part, yet Apple has been able to make its Macs and iPods distinctive — and proprietary. While that also means that Apple sometimes lets its ego get the better of it when the going is good, it’s still an amazing company that is likely to find niches worth differentiating in the future.”
Full article here.
Yet if you stayed awake through those twenty years, you might die of a heart attack from the stock’s wild dips and dizzying climbs.
WOW!
How things have changed since Steve came back, huh? With Prudential Financial, Piper Jaffray, Motley Fool, and others too numerous to mention saying that AAPL is going to $52 before year’s end, I think I’d better call my broker tomorrow!
Again . . . WOW!
“While that also means that Apple sometimes lets its ego get the better of it when the going is good,”
If letting Apple’s ego get the better of it kept it going these past 29 years, I’m looking forward to the next 29…and beyond!
I agree. If Apple has survived this long through the challanges they have already faced, then I think they have proven they are going to be around for a while
‘Munarriz picks Wal-Mart, Google, Disney, and Apple Computer.’
Notice how Microsoft and Dell aren’t on the list.
Very telling……
” width=”19″ height=”19″ alt=”wink” style=”border:0;” />
Beleaguered?
I can’t believe he didn’t pick Napster..
or Dell..
or MS…
tee hee..
time to ring the death knell … again…
” width=”19″ height=”19″ alt=”wink” style=”border:0;” />
In 20 years these four companies probably will have merged and be called Walgoodisapp
I wouldn’t put Wal-Mart or Disney on my list, but Google and Apple are smart bets. Pixar is a better bet than buying Disney stock.
I looked into loading up on AAPL a few years ago when Steve Jobs came back – it was a real bargain. The thing that stopped me then is what stops me now: I don’t know how long Steve will be with the company, and I dont know how effectively the company can innovate without Steve.
Many companies can build really cool products. What makes Apple great is that they build products that break paradigms. the Mac & Mac OS, the Laserprinter, Final Cut Pro, iPod/iTunes, etc. And that kind of thing can’t be done with just cool products – you need visionary leaders. For Apple, that means Steve Jobs.
Yes, I realize that had I put down on APPL back then I would have squintuppled. I agree with Motley’s analysis. It’s just that history has taught us that Apple without Steve, is not that sweet.
My 2¢
-AP
Wal-mart? Nope. It has too many huge holes (clothing, electronics, merchandising dirtiness and cheap unattractive displays that are reminicent of a pre-cold-war Russian store) that the likes of Target or a new player can easily out shine.
Google is much too vulnerable. Their sales of ads are dependent upon the number of users, and because their service is free, their viewers can move within seconds if someone else develops a better search algorithm (personally, I prefer Teoma.com, much faster and more accurate results – NOT viewer weighted).
I can see Disney for a long term stock, and Apple as long as Microsoft keeps screwing over their customers. But, you should NEVER marry your stocks, and you can always find SOME small sector rising even if everything that’s popular is falling.