I first became interested in the stock markets by reading dog-eared, coffee-stained copies of the Kiplinger News Letter that my dad and step mom would leave on the end tables next to their leather upholstered recliners. I'd prop up my feet, give lap sanctuary to a poodle or two and read about the world according to Kiplinger. Much of what I read I had limited understanding of in regard to the markets and the intricate internal financial clockworks of big businesses. I did, however, and still do, gain a good solid grasp of Kiplinger's projections of overall economic direction and health. I have strong respect for Kiplinger's. I have high regard for the information it provides. Since 1947 Kiplinger's has been providing solid, unbiased financial strategies for families, businesses and individuals.
An excellent column by Jeffrey R. Kosnett, on the Kiplinger website, gives pause for us to think about those particular stocks that people seem to fall in love with and refuse to let go of. The article, Stocks to Love Forever, is not an admonishment of the practice of buying and holding special stocks that are or become dear to our hearts. In fact, Mr. Kosnett makes clear that there are indeed stocks that deserve to be held for a lifetime, or nearly so. The article describes five particular companies whose stock has been worth holding. I'd like to add a few names to that love-stocks portfolio. Remember, for me these names aren't specifically just about making money. This is about companies that, for various reasons, I'd like a piece of. Some of these names may surprise you if you know a bit about my history with them, but let it not be said that I'm narrow-minded or a stick in the mud.
Old School:
- Who wouldn't like having old money in AT&T Inc. (NYSE:T)? Look where it's been and look what it's done. I dare say that more than a couple large family fortunes have been created and maintained by ownership in this old school company. The markets may rage, or the markets may sag, but unless we humans become extinct, healthy communications are essential. And as long as people are communicating, AT&T will be there to serve them in its usual fashion and with the technologies of tomorrow...
- General Electric Co. (NYSE:GE) may be my all time favorite love-stock. I've written about it several times before as have other GE cheerleaders here on BloggingStocks. You may read some of those articles here, here and here. I'm serious when I tell you that if I was restricted to owning shares of only one company, GE would be it.
New Standard:
- To some people it may seem like I have been at war with eBay Inc. (NASDAQ:EBAY), and in some senses I have been. But unless the feds march into the eBay corporate offices with a grocery cart of federal warrants and a couple television camera crews, I think eBay stock shall remain in the family of my "New Standard". I see eBay as a lifetime stock (but it might not be quite ready just yet) for very patient risk takers. There's still much transparency to accomplish and security for the masses to achieve. eBay has proven to me that it can create loads of cash flow. Now I want to see it learn how to wipe its own ass.
- Google is as Google does and Google Inc. (NASDAQ:GOOG) does it well. If I owned Google shares I'd keep them ... for a very long time to come. I think for 2007 Google is going to do some quiet building and entrenching while providing adequate growth measures to retain our interest. In 2008 I expect Google to explode once again. I sure would like to be along for that ride.
Cutting Edge:
- Is there any doubt that Toyota Motor Corp. (NYSE:TM) has arrived? It has romanced us sweetly and steadily as any lover would. It's shown us the good things we've wanted to see and have justifiably taken its place in the front row. Toyota is a love-stock for sure, probably for the next forty years if not more. If it continues using the same playbook that has gotten it this far, then I say it's a good stock to grab on to and hold. I would have just loved to have put General Motors Corp. (NYSE:GM) in this slot but it has some serious recovery work yet to do. It is pushing hard but it's still very vulnerable.
- Both Microsoft Corp. (NASDAQ:MSFT) and Apple Inc. (NASDAQ:AAPL) show all the earmarks of having lifetime potential for me. Both companies are solid, well run and have excellent, if not unlimited, growth potential. In my opinion, both companies each have a lot of work to do in the area of stabilizing their own realm. Copyright issues, intellectual property rights, transparency and boiler-plate product offerings are facets of their businesses that need to be continually improved. Either one or both companies could fall from grace in short order but I don't see that happening any time soon. As these two companies continue to grapple with their markets and their issues, the truths of their futures shall become more apparent. I could easily fall in love with either one or both of them but neither one has shown me a lifetime stance quite yet.
Remember please, I'm not trying to imply that the above companies will make you wealthy in a day or two. I'm not necessarily saying that they're each the best at what they do. All I'm getting at here is that these are all companies that have shown me they fit the majority of the criteria I look for when seeking stocks that I'd like to hold on to. I believe that any or all of these companies could provide safe haven for investment dollars with potential for growth to at least exceed inflation. There are a host of other companies such as IBM (NYSE:IBM) and PepsiCo.(NYSE:PEP) that I could add to this list also.
What some people call stubbornness in investing, I call conservative protectionism. When it comes to issues of employment, investment and love, I'm a loyalist by nature. I try to find what fits my needs and desires and stick with it. What kind of employee, investor and lover are you? Do you find what looks good today and then hunt again tomorrow or are you the kind of person who finds what you're looking for and then grabs on to it for the long haul? I'd love to have your input!
Gary E. Sattler does not hold shares in the above companies at this time.
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