NEW YORK (MainStreet) —Longterm investing is one of the most crucial pieces to a young investor's portfolio. A short term loss or gain is insignificant when you are in it for the long-run. For the next 50 years, many complications could occur, but a diverse portfolio can give you the largest chance possible for the “home run.” When a young investor does a minimal amount on trading, stability, security, and dividends have a huge impact on earnings and net worth. Here are some stocks a young investor could buy now and hold for the next 50 years.
1) A huge industry that is very stable and has an enormous ability to expand in the future is the energy sector. Valero Energy Corporation (VLO) is a company that is taking over oil refining, the ethanol ethanol market and retail throughout gas stations. Valero produces gasoline, jet fuel, lubricants, asphalt, distillates, petrochemicals and natural gases and is the world's largest independent petroleum refiner and marketer. The products of Valero are essential for transportation currently and forthcoming. Valero is starting to turn to ethanol, of which it produces 1.1 billion gallons per year in ten plants. When making the renewable resource of ethanol, that is produced from corn, the left over product, fermented corn mash, is sold off as high protein livestock feed. This then creates a very low waste, a new breakthrough that Valero can tremendously expand. Valero's economic position and liquidation stability is right now, and it looks like a bright future.
2) Apple Inc. ((AAPL) is a company that everyone should contain in his portfolio. Apple is within the technology sector and manufactures and markets iconic items such as the iPod, iPhone, iPad and iMac computers. Since 2000, Apple's stock has tremendously sky rocketed from $20 to $700 a share. It has an incredibly large amount of liquidation throughout its company reaching 97. 7 billion in cash reserves and has a worth of almost $400 billion. With new products creating ground-breaking technological advancement, consumers go crazy over Apple. As of right now, most corporations operate on a PC computer, and they are not compatible to Apple devices. Because Apple products have taken over residential use and are now starting to expand into commercial use, it is only a matter of time until corporations make a change and switch to Apple products. Apple Inc. is one of the leaders in technology, and there is no reason for diminishment in the future.
3) When holding a stock for a long period of time, it is vital to maintain a secure and stable investment in your portfolio to not only act as a safe haven but also pay a substantial dividend. AT&T (T) pays a dividend of 5.00% and has a record of stability throughout the past history of the company. AT&T perfects communication of wireless and wireline services. One of the top competitors in the business, AT&T has a market cap of around $200 billion and will continue to grow. A potential growth within AT&T is its U-Verse TV. This service has amazing features and is part of AT&T`s sales strategy of the mobile device, computer, and TV sold as a bundle package. Currently AT&T is the largest provider of the 4G network and operate the nation's largest network server. AT&T is one of the largest providers to consumers through technical service in the nation, yet it has an excellent opportunity to expand globally within the future.
4) To diversify your portfolio properly, basic materials must be implied as a large factor for the future and current economic condition. SPDR Gold Shares (GLD) is a trust for the containment of gold. At times of high volatility with tough financial times within the market, gold is usually an ultimate hedge. When investing in gold, you protect yourself against inflation and deflation while also securing a protection with problems in currency. For a long-term situation, many investors are bullish on GLD for many years to come. Only speculation is announced toward the future economic condition and with a slip in the market, the GLD could spike dramatically giving any investor a large return on their initial investment.
5) Walt Disney Company (DIS) has a vast arrangement of specialties within media network, parks, resorts, studio entertainment, consumer products, media, and cruise line fields. Disney owns many different networks including ABC Family, ESPN and ABC News. It has a secure market cap of about $101 billion and a slim but suitable dividend of 1.40%. Walt Disney succeeds through parks and resorts which have been placed all over the world including Tokyo, Paris, Hong Kong, and Shanghai. DIS has dramatically thrived worldwide and sets a precedent for any other company trying to follow Disney's excellence. This company will be around for ages to come by the support of the younger generation and dedication to Disney`s characters and media. Nothing matches Disney's productions as far as reputation and quality.
Bottom Line: The most important thing for a young investor's portfolio is diversification of where funding is placed. For each sector of the market, different situations occur. If funding is spread, the investor is in a more stable position for a long-term hold. If you are going to have an extensive amount of equity wrapped up in a certain investment, qualifications have to be met and you should believe in the companies product or service. 50 years is a long time to hold, yet by doing this, the profit margins could be massive.
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