With the current challenging market conditions probably many of us are wondering which are those reliable stocks that could offer us a big profit in the next coming years. In the light of those questions, Gene Marcial's new book, 7 Commandments of Stock Investing, reveals his perspective over seven stocks that are considered to be worth buying and holding for the next seven years (check out BusinessWeek's slideshow of his seven picks).Taking advantage of the experience he gained over the past 30 years, BusinessWeek's Gene Marcial shares his opinions related to investors' strategy to use market meltdowns for their own benefit, being able to turn the stock market panic into success.
Talking about the steps an investor has to make to reach the success, Marcial underlines two phases. The main idea is that no one will knock at your door to show you an opportunity to make money; this usually comes out of the blue and traders must be prepared. Marcial recommends cash reserves of 10% to 20% of portfolio. Related to the second step, he takes into account two lists with both stocks in which we see gain potential and stocks that have already proved their efficiency.
Now let's take a look at those 7 stocks that Marcial recommends.
- Apple Inc. (NASDAQ: AAPL) - the technology giant had a pretty good past year and I think it is a great pick;
- Boeing Co. (NYSE: BA) - the aerospace company had to face declining stock price during 2007, but has been seeing a nice rebound recently. With the soaring oil prices though I'm note quite sure that I will be eager to invest my money in BA;
- CVS Caremark Corp. (NYSE: CVS) - the largest U.S. pharmaceutical retail chain saw its shares in a steady ascent but still trades at a modest valuation;
- Genentech Inc. (NYSE: DNA)- the biotechnology company faced tough times that weighed heavily on its shares for the past year;
- JPMorgan Chase & Co. (NYSE: JPM) - the financial company has been under pressure from traders' recession fears over the past months but Marcial sees earnings potential for the stock;
- Petroleo Brasileiro (NYSE: PBR) - is one of the world's largest oil companies; I believe is a good pick as oil prices are poised for further more gains;
- Pfizer Inc. (NYSE: PFE) - the drug company saw its shares plunging for the past year, but with its current plans related to some significant acquisition we may see a nice recovery in the stock.
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Reader Comments (Page 1 of 1)
5-02-2008 @ 9:08PM
Shaun said...
I'm liking AAPL. I think I'm getting into that one pretty soon. The other ones are ok, but I'm not much of a long term trader.
http://www.stocks-simplified.com
5-02-2008 @ 10:50PM
Bernie R. said...
ExxonMobil (XOM) will be outperforming all of them....
5-03-2008 @ 12:21AM
james said...
why gamble with any of them hasbeens. But etf shorts and trade on swings. Safe and can't lose. Single issues are deadly. Pfe is nothing company. AAPL is overbought one trick pony......Jobs will cash out way before investors realize he's gone. CVS is way OVERBOUGHT. Notice the recommendations..??? Familiar names? That's called pumping. Surely a pro would recommend growth and new companies on the rise.........look at AAPL........got hot real hard then jacked back up..........now, common sense should tell any trader or investor that someone put a high target on projected growth. Well, look at 4 years ago when AAPL didn't......14 bucks........it's a rocket that flys then lands FOE YEARS! Why would anyone buy aapl when Jobs is running on his last leg of ''creativity'' that is simply being duplicated in Japan,China and India........EUROPE! POint is?? You fly in jets that have already had gas, but now their flying with BULL AIR Called analyst NONSENSE! Evene morningstar has warned about the inflated speculation. 7 billion people on earth and a fraction will use aapl........imagine what will happen whem AAPL......slips..........they do.........and the growth is gone and so is YOUR MONEY! Don't buy into the article..........the guy hasn't a clue about ''good buys''..............if he did, he would say something with facts......not yesterdays ships. They will sink.........look at pfe,ge...........amat.csco,.you name them........LOOK AT CHARTS and OUT standing shares.........pge especially...........ain't going nowhere. AAPL has already priced in GROWTH and THEY KNOW IT!
5-03-2008 @ 7:10AM
Michael Schneider said...
Except for Pfizer, his 7 picks are all big, well known, in-favor "safe pick" stocks that are in every fund manager's portfolio. They are all safe bets to do pretty well in 7 years and as a group may beat the market but it is doubtful that they will make anyone rich buying all 7.