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.
Comments
Post a Comment