1 Stock to Hold Forever
Since the Passive Monthly Income newsletter debuted in
August 2015, we have added 52 stocks to the portfolio. We sold 13 of those
picks over the period, nine of which were for large capital gains. The
remaining 39 stocks still remain as active positions in the portfolio today.
Does that mean we have a preference for longer holding
periods? For sure. I respect anyone that can flip equities for quick profits.
But that’s not how we do things around here. Let others fiddle with the
Fibonacci retracements, stochastic oscillators, and chart price patterns to
predict stock movements for the next hour or so. Our investment horizon is over
the next decade or more.
In paid newsletters, we seek out an elite group of
businesses I’ve nicknamed “forever assets.” I highlighted several such firms in
previous issues. These firms represent a group of stocks you could literally
buy today and hold for the rest of your life.
Thanks to their entrenched market positions, such elusive
companies throw off ample supplies of surplus free cash flow, which management
generously shares with investors. This results in a growing stream of income
(in addition to outrageous capital gains) that can roll in like clockwork for
decades.
This month, I want to highlight another such forever asset:
Hershey Co (NYSE:HSY). For decades, The Hershey Company has served up sweet
treats for chocolate lovers. What’s less well known is that the candymaker has
also delivered plenty of treats for income investors, too.
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