Warren Buffett once said, “If you don’t want to own stock for ten years, don’t even think about owning it for ten minutes.” Quite frankly, there are several popular stocks on the Robinhood trading platform that you definitely wouldn’t want to own for 10 years. Some of them were risky to keep for 10 minutes.
However, quite a few stocks preferred by Robinhood investors are reliable custodians. These are stocks of well-managed companies that have good long-term prospects. You wouldn’t want to sell these shares in just 10 years. Here are three Robinhood stocks you can buy and hold forever.
How rooted Amazon.com (NASDAQ: AMZN) become in our daily life? As I write this, I’m sitting on my desk with an Amazon Echo Dot running the AI technology of the virtual assistant Alexa. Over the weekend, I read a book on the Amazon Kindle app. I’m in the middle of a Prime Video series. Packages purchased from Amazon regularly come to my doorstep. I have used at least four applications that I know are hosted on Amazon Web Services (AWS) in the last 72 hours.
I know it is theoretically possible that all of this could evaporate in the future. But I don’t see that. In fact, I think it is much more likely that Amazon will become even more part of everyday life.
Yes, the bigger Amazon gets, the more difficult it will be to sustain the growth that the company has generated in the past. Perhaps antitrust authorities will one day try to split the company up. It doesn’t bother me though. I believe Amazon would be worth even more if its components were self-contained.
I also fully expect Amazon to be able to achieve surprisingly robust growth despite its sheer size. The company is expanding its grocery business. A self-driving robotic taxi was developed. Amazon is increasing its presence in the healthcare market with plans to launch Amazon Care telemedicine service for employers this summer. It is reported that he has a home robot on the way. All of this has the potential to boost Amazon’s revenue and sustainability.
Like Amazon, Disney (NYSE: DIS) claims to be one of the top ten Robinhood investor stocks. I can’t think of many stocks that I would rate in the forever category higher than this entertainment icon.
Now more than ever, content is king. And I would say Disney is the king of content. The company owns many of the most profitable media franchises including ESPN, Marvel Studios, and Pixar.
Disney has proven with an exclamation mark that it can compete in the TV streaming market. Its Disney + subscriber base skyrocketed during the pandemic. The company’s commitment to consistently releasing new Marvels and star Wars movies and TV shows need to keep viewers connected and continue to attract new subscribers. Major new films debuted this summer such as Black Widow and Cruella both in theaters and at a higher price for Disney + could also be of great interest.
The company’s theme parks were its weakest link during the pandemic. However, with the increased availability of COVID-19 vaccines, this part of Disney’s business should recover in the not too distant future. In the long term, Disney can continue to work wonders for the public, park visitors and investors.
3. Johnson and Johnson
Johnson and Johnson (NYSE: JNJ) stands out as one of the key players helping Disney (and others) return from the pandemic. In late February, the company’s single-dose COVID-19 vaccine was approved for use in emergencies in the United States.
However, this vaccine is not the main reason Johnson & Johnson is a stock to be bought and held forever. This is just one product in a long line of products marketed by the healthcare giant. J&J’s diversification into the fast-growing healthcare sector makes it the ideal stock to own for decades.
The company is best known for its consumer health products such as patches, listerine, and Tylenol. However, J&J also runs a multi-billion dollar medical device business. The medical giant’s largest source of income is the pharmaceutical segment, which sells drugs, including the autoimmune drugs Stelara and Tremfya, and the cancer drugs Darzelax and Imbruvica.
In addition, Johnson & Johnson belongs to an exclusive group of shares known as the Dividend Kings, which is on the S&P 500, whose dividend has increased for at least 50 consecutive years. The J&J Series of Dividend Raising is currently 58. This track record underscores the stability of the company – the kind of stability you want from a stock that you can hold on to.
This article represents the opinion of an author who may disagree with the “official” recommendation position of Motley Fool’s premium consulting service. We are colorful! Bidding on an investment thesis – even our own – helps us all to be critical about investing and make decisions that help us become smarter, happier, and richer.