The Best Stocks for the Long Term

An article by Jeremy Siegel on Yahoo! Finance on April 20th, 2006 gives some savy investment advice. Get into some blue chips.

The table below lists the twenty best-performing of the original S&P 500 firms that have survived since the index was formed almost 50 years ago. If you were lucky enough to own a portfolio of these 20 stocks, you would have beaten the S&P 500 by more than 4.5% per year and seen your wealth grow eight times the level it would have grown to in the S&P 500...Interestingly, virtually all of these stocks, despite their history of remarkable returns, have reasonable P-E ratios today. The average forward looking P-E ratio of these twenty stocks is currently 16.33x, which is only one point higher than the S&P 500.

Read on.

14 Comments
 

blue chips are boring...get into some emerging markets. plus, with the dollar about to go into crisis and commodities already at astronomical prices, where else are you going to put your money? Real Estate? that bubble is already about to pop...or at least deflate.

 
Best Response

blue chips are safe .....

International Business Machines Corp. IBM Computer Services 0,75% Exxon Mobil Corp. XOM Integrated Oil & Gas 0,69% Chevron Corp. CVX Integrated Oil & Gas 0,68% Procter & Gamble Co. PG Nondurable Household Products 0,59% 3M Co. MMM Diversified Industrials 0,59% Johnson & Johnson JNJ Pharmaceuticals 0,56% McDonald's Corp. MCD Restaurants & Bars 0,53% Wal-Mart Stores Inc. WMT Broadline Retailers 0,49% United Technologies Corp. UTX Aerospace 0,47% Coca-Cola Co. KO Soft Drinks 0,42% Boeing Co. BA Aerospace 0,38% Caterpillar Inc. CAT Commercial Vehicles & Trucks 0,35% JPMorgan Chase & Co. JPM Banks 0,32% Hewlett-Packard Co. HPQ Computer Hardware 0,29% Verizon Communications Inc. VZ Fixed Line Telecommunications 0,28% AT&T Inc. T Fixed Line Telecommunications 0,26% Kraft Foods Inc. Cl A KFT Food Products 0,26% E.I. DuPont de Nemours & Co. DD Commodity Chemicals 0,26% Merck & Co. Inc. MRK Pharmaceuticals 0,26% Walt Disney Co. DIS Broadcasting & Entertainment 0,20% Home Depot Inc. HD Home Improvement Retailers 0,19% Microsoft Corp. MSFT Software 0,19% American Express Co. AXP Consumer Finance 0,19% Bank of America Corp. BAC Banks 0,15% Pfizer Inc. PFE Pharmaceuticals 0,15% General Electric Co. GE Diversified Industrials 0,15% Intel Corp. INTC Semiconductors 0,12% Alcoa Inc. AA Aluminum 0,10% Citigroup Inc. C Banks 0,09% General Motors Corp. GM Automobiles 0,03%

Lol, I only see 4 safe stocks in that list

 

AAPL. Hell, I would've invested hardcore in FB.

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