What are the 7 stocks to buy and hold forever?
I hear about the Magnificent Seven several times a day — seven companies and eight stocks that have dominated headlines for the past few months. The Magnificent Seven comprises Apple (AAPL), Microsoft (MSFT), Amazon (AMZN), Nvidia (NVDA), Meta Platforms (META), Tesla (TSLA), and Alphabet (GOOG/GOOGL).
I hear about the Magnificent Seven several times a day — seven companies and eight stocks that have dominated headlines for the past few months. The Magnificent Seven comprises Apple (AAPL), Microsoft (MSFT), Amazon (AMZN), Nvidia (NVDA), Meta Platforms (META), Tesla (TSLA), and Alphabet (GOOG/GOOGL).
Since the index hit its latest low in October 2022, seven stocks — Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia and Tesla — have collectively risen nearly 117 percent, far outpacing the performance of the other 493 companies in the S&P 500. Together, these stocks have become known as the “Magnificent Seven.”
| Company (ticker) | Annualized return over last 10 years |
|---|---|
| Hartford Financial Services Group (HIG) | 12.6% |
| Home Depot (HD) | 19.6% |
| Lockheed Martin (LMT) | 14.0% |
| Stellantis N.V. (STLA) | 20.1% |
Microsoft, Amazon, and Tesla have three stars, indicating a fair market value, while Apple, Nvidia, and Meta have two stars, indicating they are overvalued. Alphabet, with a four-star rating, is the only one among the group considered undervalued.
| Company | Performance (Year) |
|---|---|
| Uber Technologies Inc (UBER) | 110.94% |
| Broadcom Inc (AVGO) | 107.88% |
| Arista Networks Inc (ANET) | 106.85% |
| Advanced Micro Devices Inc. (AMD) | 103.39% |
Assuming you do go down the road of picking individual stocks, you'll also want to make sure you hold enough of them so as not to concentrate too much of your wealth in any one company or industry. Usually this means holding somewhere between 20 and 30 stocks unless your portfolio is very small.
The Magnificent Seven stocks — Amazon.com (AMZN), Apple (AAPL), Google parent Alphabet (GOOGL), Meta Platforms (META), Microsoft (MSFT), Nvidia (NVDA) and Tesla (TSLA) are closing out a huge year, all easily beating the S&P 500 index.
While the S&P 500 rose more than 24% in 2023, the Magnificent Seven big tech stocks— Apple , Amazon , Alphabet , Meta Platforms , Microsoft , Nvidia , and Tesla —did much of the heavy lifting .
- The ranks of the top 10 include Berkshire Hathaway, Eli Lilly and chipmaker Broadcom.
- As these companies have surged, they've become responsible for an increasing share of the stock market's performance.
What's the best stock to buy and hold forever?
| Stock | Implied upside from Feb. 7 close | Forward dividend yield |
|---|---|---|
| Procter & Gamble Co. (PG) | 9.4% | 2.4% |
| Home Depot Inc. (HD) | 3.4% | 2.3% |
| AbbVie Inc. (ABBV) | 12.6% | 3.5% |
| Bank of America Corp. (BAC) | 23.6% | 2.9% |
| Stock Symbol | Market Price Rs | 1-year Returns (%) |
|---|---|---|
| NTPC | 177.90 | 24.38 |
| HINDUNILVR | 2,535.00 | 22.04 |
| LT | 2,169.00 | 21.23 |
| EICHERMOT | 3,000.05 | 21.08 |
In addition to Costco Wholesale Corporation (NASDAQ:COST), Walmart Inc. (NYSE:WMT), and Berkshire Hathaway Inc. (NYSE:BRK-B), The Procter & Gamble Company (NYSE:PG) ranks as one of the safest stocks to invest in.
Warren Buffett's Berkshire Hathaway (BRK.A) commands the No. 1 position, with an impressive stock price of over half a million dollars.
- Rocket Pharmaceuticals, Inc. (NASDAQ:RCKT) ...
- Ultragenyx Pharmaceutical Inc. (NASDAQ:RARE) ...
- Iridium Communications Inc. (NASDAQ:IRDM) ...
- H World Group Limited (NASDAQ:HTHT) ...
- Copa Holdings, S.A. (NYSE:CPA) ...
- Shoals Technologies Group, Inc. ...
- Liberty Live Group (NASDAQ:LLYVA)
| Stock | 2024 performance through Jan. 31 close |
|---|---|
| Super Micro Computer Inc. (SMCI) | 86.3% |
| Kaman Corp. (KAMN) | 88.1% |
| Ambrx Biopharma Inc. (AMAM) | 95.2% |
| Digital World Acquisition Corp. (DWAC) | 116.9% |
| STOCK | ACTION | TRADE PRICE |
|---|---|---|
| IDFCFIRSTB | BUY | 80.50 |
| VOLTAS | BUY | 1100 |
| REDINGTON | BUY | 199 |
| TAJGVK | BUY | 347 |
On Holding (NYSE: ONON), Roblox (NYSE: RBLX), and Uber Technologies (NYSE: UBER) are showing strong business growth that could deliver significant upside in the years to come, according to these Motley Fool contributors.
- Pfizer's regrouping at the moment, but it is poised to shine again.
- UnitedHealth Group is a healthcare juggernaut with more success ahead.
- Abbott Labs should continue its proven formula of slowly making shareholders wealthy.
| Company (Ticker) | Sector | Market Cap |
|---|---|---|
| JPMorgan Chase (JPM) | Financials | $505.70B |
| UnitedHealth (UNH) | Health care | $478.78B |
| Comcast (CMCSA) | Communication services | $169.24B |
| Bristol-Myers Squibb (BMY) | Health care | $101.23B |
What would you do with $100,000 today?
You can build your emergency fund and pay off debt, too
With $100,000 at your disposal, setting aside some money to enhance your rainy day reserves is a good choice. And in the current high-interest rate environment, paying down debt is another savvy move.
The Bottom Line. With many available options, investors can use $1,000 to purchase ETFs, stocks, or bonds.
| Company | YTD returns (%) |
|---|---|
| Aurionpro Solutions | 478 478 478 |
| Titagarh Railsystems | 376 376 376 |
| Jindal Saw | 321 321 321 |
| Inox Wind | 278 278 278 |
The group is made up of mega-cap stocks Apple (AAPL), Alphabet (GOOGL), Microsoft (MSFT), Amazon.com (AMZN), Meta Platforms (META), Tesla (TSLA) and Nvidia (NVDA). In 2023, the Magnificent 7 stocks logged an impressive average return of 111%, compared to a 24% return for the broader S&P 500.
(NASDAQ:PEP) has consistently ranked among the likes of Costco Wholesale Corporation (NASDAQ:COST), Walmart Inc. (NYSE:WMT), and Berkshire Hathaway Inc. (NYSE:BRK-B) as one of the best safe stocks for long term investors. Click here to continue reading and check out 5 Safe Stocks To Invest In For The Long-Term in 2023.
