Advice for Long-Term Stock Investors – Yahoo Finance

(1:00) – Winning The Lottery and Creating A Winning Portfolio
(13:30) – Creating A Strong Long Term Investment Account
(25:45) – Episode Roundup: BAC, MSFT, CVX, MRK, MARA
Podcast@Zacks.com
 
Welcome to Episode #344 of the Zacks Market Edge Podcast.
Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.
This week, Tracey went solo to talk about what it’s like to be a long-term investor. Think it’s easy just because the stock market was hot in 2020 and 2021? Think again. 2022’s sell-off threw a bucket of water on many investors.
But you don’t need to throw in the towel just because of some bear market corrections. However, you likely will have to adjust expectations.
Bull markets make it seem so easy to make money. Bear markets take a dedicated, and smart, investor willing to have a lot of patience.
Do You Have What it Takes to Be a Long-Term Investor?
1.      Bank of America BAC
Warren Buffett’s Berkshire Hathaway owns a lot of shares of Bank of America. It’s the second largest position in his equity portfolio.
Berkshire originally bought shares of Bank of America in the third quarter of 2017. That’s going on 6 years now. Using the last trading day of the third quarter of 2017, Sep 29, 2017, as a purchase date, the shares are up just 36% over that time.
Yet Buffett continues to hold the massive position in Bank of America but he’s collecting a dividend yielding 2.6% while he waits.
Have you been able to hold on over the years in Bank of America?
2.      Microsoft MSFT
Microsoft is not in Buffett’s portfolio, but I’m sure he wishes it was. During the same time period that he’s owned Bank of America, Microsoft shares have soared 221%.
The FANGMAN stocks have made investing seem “easy” the last few years.
Microsoft also pays a dividend but it’s yielding just 1.1% now.
Should investors be looking at Microsoft in 2023?
3.      Chevron CVX
Chevron is also now in Berkshire Hathaway’s portfolio but it is a more recent addition, having been added in the fourth quarter of 2020.
It is now Berkshire’s third largest equity position, at 8% of the portfolio. Last year, Buffett added more shares to his position.
Chevron’s earnings more than doubled in 2022 from 2021 but are expected to fall 16% in 2023 as oil and natural gas prices fall from the recent highs.
Shares of Chevron are up 50.8% over the same period as Bank of America, as of Sep 29, 2017, which is under that of the S&P 500 in that time period of 58%.
Have you been an oil investor over the last 5 or 10 years in companies like Chevron? Were you able to stick it out?
4.      Merck MRK
Merck gained 36% last year but the prior years weren’t as easy. Merck shares lagged in the last decade, but one good year makes up for a lot.
Merck has gained 81.3% over the same time period as Bank of America has been in Buffett’s portfolio. That’s better than the S&P 500 at 58%.
Merck also pays a dividend, yielding 2.6%.
Merck is breaking out in 2023. Have you stuck around long enough to see it?
5.      Marathon Digital MARA
2021 winners were 2022 losers as growth stocks sold off last year. One of those was Marathon Digital, which mines cryptocurrencies and supports blockchain.
Marathon Digital was down 71% over the last year, making it difficult for long-term investors to stick it out. But traders had some luck in the last month, as shares of Marathon Digital rose 112%.
Analysts expect Marathon Digital to make $0.55 in 2023 after analysts expect it to lose $2.69 in 2022. It trades at 14x forward earnings.
Should long-term investors dive into some beaten down growth stocks like Marathon Digital?
What Else Do You Need to Know Long-Term Investing in 2023?
Listen to this week’s podcast to find out.
[In full disclosure, Tracey owns shares of MSFT in her personal portfolio. She has owned it for 4 years.]
 
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Bank of America Corporation (BAC) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Chevron Corporation (CVX) : Free Stock Analysis Report
Merck & Co., Inc. (MRK) : Free Stock Analysis Report
Marathon Digital Holdings, Inc. (MARA) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
Related Quotes
The past year has not been easy for MSFT investors. The stock price is down 22% over the last 12 months, underperforming the S&P 500 over that same period.
Zelle and Bank of America say they have fixed a technical issue that caused reports of missing funds and log-in difficulties. Zelle is a popular payment app that makes it quick and easy to send money to friends and family. It is free to use and integrates with many U.S. banks, including Bank of America.
Kinder Morgan (NYSE: KMI) ended 2022 on a strong note. Its distributable cash flow was up by a double-digit percentage, fueled partly by improving energy market conditions. As a result, its full-year earnings were also up by a double-digit percentage after adjusting for the positive impact of winter storms in 2021.
In the latest trading session, Berkshire Hathaway B (BRK.B) closed at $305.23, marking a -1% move from the previous day.
The Nasdaq Composite index has dropped nearly 26% over the past 12 months, and many individual stocks have fallen far more. Much like a house, an investment portfolio for long-term investors requires a robust foundation, a durable structure, and a few decorations. Apple (NASDAQ: AAPL) can help serve as the bedrock for incoming investors for a few reasons.
Missouri's GOP delegation quickly demanded more information and a full investigation last week into the president's handling of documents.
Actor Alec Baldwin has been charged with involuntary manslaughter in the death of a crew member he mistakenly killed with a prop gun on a New Mexico movie set.
The price of Amazon Music's 'Unlimited Individual Plan' will go up by $1 to $10.99 per month, while its 'Unlimited Individual Student Plan' will go up to $5.99 from $4.99 per month, according to the company's FAQ page. Amazon raised its music streaming service's price for Amazon Prime members in May last year, according to a Verge report.
Investors are hoping the company's COVID-19 vaccine will turn the company from a clinical-stage biotech to a commercial one.
When it comes to the Obama-era classified documents discovered at President Biden’s home and personal office, Sixty-four percent of U.S. adults support a congressional investigationm, according to a new Yahoo News/YouGov poll.
Police have made an arrest in the armed robbery of an East Liberty business.
The biggest monthly branch slashing in at least a decade is underway in Pittsburgh. Four different banks will have shed a combined 20 branches by the close of business on Friday. It's taking 10 days and likely a record for the region.
A big-time company that's quickly become an investor favorite, Microsoft Corp. (MSFT), is slated to unveil its Q2 results on Tuesday, January 24th, after the market close. What's in store for the technology titan?
As a component of the Dow Jones Industrial Average, managed care company UnitedHealth Group (NYSE: UNH) fits the definition of a quality stock. Let's check into UnitedHealth's fundamentals and valuation to find out. As of Dec. 31, UnitedHealth Group served 151 million unique customers across its UnitedHealthcare health insurance business and Optum technology services business.
Renewable energy stocks sank Thursday morning, and for a variety of reasons. As of 10:45 a.m. ET, shares of charging network operators Blink Charging (NASDAQ: BLNK) and ChargePoint (NYSE: CHPT) are down 6.7% and 6.8%, respectively, while hydrogen fuel cell company Plug Power (NASDAQ: PLUG) continues to give back yesterday's gains, and is in fact down another 7.5% today. Yesterday, if you recall, Plug Power went on something of a wild ride, first rising several percentage points before ending the day with a loss, as investors first reacted to a positive assessment of the company's prospects from The Wall Street Journal — then seemingly rejected that assessment entirely.
Yahoo Finance Live anchors Seana Smith and Dave Briggs highlight several tickers making moves in after-hours trading.
The bailout by the Federal Home Loan Bank has critics questioning whether the government-backed enterprise has lost its way.
Buy cheap? Even in the stock market, buyers like to find a bargain. Defining a bargain, however, can be tricky. There’s a stigma that gets attached to low stock prices, based on the reality that most stocks don’t fall without a reason. And those reasons are usually rooted in some facet of poor company performance. But not always, and that’s why finding stock bargains can be tricky. There are plenty of low-priced equities out there with sound fundamentals and solid future prospects, and these opt
Stocks moving in after hours: Netflix, Nordstrom, Bed Bath & Beyond
Investors were energized about energy infrastructure company Kinder Morgan (NYSE: KMI) on Thursday. After the company unveiled its latest set of quarterly results, its share price advanced to close the day more than 2% higher, a contrast from the nearly 0.8% decline of the S&P 500 index. For its fourth quarter, Kinder Morgan booked just under $4.58 billion in revenue, which was a touch over 3% higher on a year-over-year basis.

source

Related Posts

Leave a Reply

Your email address will not be published. Required fields are marked *