The 9 Best Stocks to Buy for the Next Decade


You can put these stocks in a drawer and not look at them again for the next 10 years


A few years ago, InvestorPlace contributor Dan Burrows highlighted the ten best-performing S&P 500 stocks of the past decade. The most important lesson one finds by studying these high-flying stocks is that patience wins out over all other attributes of a successful investor.

A classic example of how true this is involves the Fidelity Magellan Fund (MUTF:FMAGX), the large mutual fund made famous by portfolio manager Peter Lynch. Lynch ran the fund for 13 years from 1977 until 1990, growing it from $20 million to $14 billion before stepping aside.

Fidelity studied the returns of Fidelity Magellan unit holders over those 13 years to see how they compared to the legendary portfolio manager. While Lynch managed to achieve a 29% annual return over this period, the average investor lost money.

Patience would have served those investors well, as the ups and downs of the stock market shook them out of their positions — and in doing so, deprived them of millions of dollars in profits. A $10,000 investment in 1977 held until 1990 was worth $273,947 by the end of that 13-year period.





I’m not Peter Lynch, but I can say with some confidence that the following names are the nine best stocks to buy for the next decade.



No comments:

Post a Comment