If you’re going to buy a stock and stick with it through thick and thin, you’d better be pretty confident it has a future-proof business model! Stock markets around the world have rebounded so sharply from the lows the pandemic brought them to last year that finding bargains has become incredibly difficult.
Not only are almost all stocks looking very expensive by most traditional metrics, it has become very hard to find stocks with much left to recover from the pre-pandemic highs. This has made both growth and value investors reconsider their models and their ideas.
The hunt for good companies at great prices goes on today as it has before, but today you have to work just that little bit harder to discover interesting investment ideas! Here we take you through 5 stocks that look like you could safely buy them today and simply hold them in your portfolio forever.
Bargain Stocks to Buy Today And Hold Forever:
1. Tate & Lyle
There can be few doubts that global food and beverages giant Tate & Lyle pass this test, but no necessarily for the reasons you might expect! Firstly, and most obviously, Tate & Lyle is a well-known provider of consumer staples with a long history of strong performance behind them. However, more interesting from the perspective of an investor looking to buy now and hold forever is the fact that Tate & Lyle is actively seeking to upgrade their numerous product lines in the light of the rising popularity of sustainability with the modern consumer.
Fears of climate change, as well as the increase in the global middle class, has already caused a wide-spread societal shift towards healthier eating and concerns over the sustainability of food sources. As a manufacturer of healthy ingredients, such as sugar alternatives like stevia, Tate & Lyle are well-placed to harness this change in consumer attitudes and behaviour towards food.
As well as developing healthier alternatives like stevia, Tate and Lyle have also been at the forefront of pushing for more sustainability and environmental protection to be put in place across their supply chains. As such, Tate & Lyle looks like a well-established business which is taking the right steps now to be ready for the future.
2. Ubisoft
The pandemic and the lockdowns it brought were something of a boomtime for video game stocks. The fact that everyone was locked in with few or no other entertainment opportunities meant sales revue soared in this sector. However, it can be argued that this is far from a temporary blip.
With the role of technology in our daily lives only set the grow further in the future, companies that provide high-quality home entertainment will have larger and larger markets to sell to. Some studies already put the average age of gamers as high as the mid 30s, and todays teenagers are set the be tomorrow’s high earning professionals able and willing to spend big on gaming.
Ubisoft has had several notable successes already, including Assasin’s Creed and Far Cry, and the stock looks very affordable right now compared to some of its competitors.
3. Square
Listed on the New York Stock Exchange, Square has become so much more than just another online payments processor. The tech that launched this startup to success was their platform which allowed companies to take payments via their mobile phones, but today it is a whole online ecosystem providing a range of financial services. This is why Square looks to be another future-proof buy that you can hold forever – the evolving needs for financial services will require more innovation along the lines of what Square has already shown it can do.
Today, they already process well over $100 billion a year, and many analysts expect them to keep up their growth rate for quite a few years ahead.
Two of the most promising side-projects which suggest Square will have an even wider role in financial services in the future are Square Capital, its thriving small-business lending platform, and the fact that it has started to get some larger clients to use its payments software as well as SMEs.
Square is an exciting fintech that has shown it can compete with and win customers from the big banks, and therefore looks like something you could consider buying today and holding forever.
4. Coty
Coty is one of the world’s largest beauty companies and a household name around the world. Coty possesses an iconic portfolio of global brands across fragrance, cosmetics, and skin and body care.
Specifically, Coty is the global leader in fragrance, one of the highest profit margin sections of the cosmetics market. Whilst the pandemic has been bad news for the luxury industry in general, there are good reasons to think the coming decades will be kind to this sector.
More and more global consumers are seeing their incomes rise; this means strong future demand for luxury cosmetics is very likely. Coty’s products are sold in over 130 countries around the world, and this means they are relatively insulated from the danger of any single market tanking.
Finally, Coty and its brands are committed to a range of social causes as well as seeking to minimize their impact on the environment. As already mentioned, this is the sort of thing you should look for with companies you want to buy now and hold for the long-term. The consumer of the future will be more, not less ethic, than the consumer of today!
5. Ocado
Last but not least, a long popular stock with those looking to buy and hold for the long-term. Ocado’s world-beating automated warehouse technology will soon be licensed and sold around the world, and the British online grocer looks close to outgrowing its initial market and becoming the true global tech titan it always promised to be.
The stock looks affordable right now since the food sales they achieved during the pandemic were less spectator than some analysts expected.
Essentially, the traditional supermarkets deserve a lot of credit for ‘upping their game’ when it was crunch time last year. However, there can be no doubt that the applications for Ocado’s warehouse automation tech are boundless, and the company looks like a great choice to buy and hold today.
Buy Now – Never Sell!
These 5 stocks all look like good candidates to buy now and hold forever. This is not to say they won’t fluctuate, but they all look to have business plans that are ready for the future, as well as some level of past success. These two things combined make them good picks for the investor looking to add stocks to their portfolio and then hold them for the long term.
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